Dogecoin was on the few growing cryptocurrencies on Tuesday, with a growth of almost 16% compared to the other day, and over 440% in the last 7 days, while that Bitcoin lost 4.10% and 9.90%, respectively, according to investing.com.
This contradictory evolution allowed Dogecoin to climb to the 4th place of the most important cryptocurrencies, before falling from back to 5th place.
Dogecoin has shown an increase of over 7,000% since the beginning of the year.
The cryptocurrency thus has a capitalization of over 50 billion dollars, surpassing prestigious companies such as ING, Barclays, or Credit Agricole.
The cryptocurrency was inspired by the “Doge” meme of the Shiba Inu dog breed and was created as a joke, in 2013, by software engineers Billy Markus and Jackson Palmer as a faster but also fun alternative to bitcoin.
However, several cryptocurrency analysts and traders have begun to sound the alarm against DOGE, as the largest holders of such cryptocurrencies, known as “whales”, control most of the supply.
According to available information, over 65% of cryptocurrencies are distributed in only 98 portfolios worldwide. The largest portfolio alone holds 28% of all dogecoin coins. The first 5 portfolios control 40% of the market.
“The scam is simple: you keep Dogecoins until there is enough market power and then sell and collect everything – you instantly become a billionaire,” said Akand Sitra of TRM Labs’ cryptocurrency risk management platform.
“The Dogecoin bubble will explode by the end of the year,” says Sitra.