Dogecoin has brought crypto investors more money than Bitcoin and Ethereum since the beginning of the year. But not everything about this incredible rise to superstardom was all glam and glitz.
Although the “joke” coin has proven itself everything, it has nevertheless created a not-so-funny situation for several regular investors who are late in the game. Anyone expecting a dollar a DOGE and bought too close to the top could now be a sad puppy who has lost a lot more than their favorite bone.
Who’s a good boy? DOGE is raising huge wealth from mainstream investors
While waiting in line for coffee, two young men, no older than their mid-twenties, were heard having a loud conversation. Before ordering their iced lattes, one tells the other that his $ 250 investment in Dogecoin has turned into a cool few grand in his pocket.
These stories are not uncommon for mainstream investors who generally have no idea what they are doing, but heard about the meme coin with an adorable internet pup through TikTok. They hit buy on Robinhood or other apps and made a small fortune – but not enough to catch up with mint frontman Elon Musk.
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Anyone who puts money into Dogecoin in early 2021 will have a lot more money than they started with. Unless they’re among the last to join the feeding frenzy among the pack of hardcore fans, there’s always a different side to every coin.
The good, bad, and ugly of the Dogecoin pump all in one chart | Source: DOGEUSD on TradingView.com
Bad Doggy: Dogecoin Latecomers get bitten, rally asleep
The chart above shows the tech rollercoaster that has been the meteoric rise of Dogecoin. DOGE has had a tear and is up nearly 10,000% this year alone.
Anyone who came in before April will still have enough bones buried for a rainy day, but those late to the party may want to roll over and play dead.
Related reading | The two signs saying Dogecoin holders are dealing with “a lot of Ow”
The first correction saw an immediate 70% collapse. Right now there is a massive recovery and Dogecoin is still more than 40% lower than ever.
But when you compare a measly 40-70% correction to a nearly 10,000% rally, this dog could have a lot more to lose.
When assets lose their parabolic progress, they tend to correct by as much as 80% or more. In altcoins like Dogecoin, things historically get much worse, often shaving 99% of all-time highs before making another attempt at recovery years later.
Those sucked in that don't understand markets can lose a ton of money | Source: Reddit
That could cause investors like the one in the doghouse to be left behind for some time. Take this poor guy, for example, who now has to tell his wife that the allure of DOGE to the moon and $ 1 Dogecoin was well worth the risk of their savings.
The moral of this story is that every dog has its day and Dogecoin’s could now be in the past. If so, any further winnings will be held on the line.
Featured image from Pixabay, Charts from TradingView.com