Popular cryptocurrency supporter Mike Novogratz warned of the dangers of investing in hype cryptocurrencies. About this he wrote on my Twitter page.
I actually think the $DOGE frenzy is gonna end poorly. Same reason $ GME did. Greed and Gravity. $DOGE doesn’t have a purpose. Stay with $ BTC, $ ETH, defi coins. Plenty of smarter ways to play this crypto rally.
– Mike Novogratz (@novogratz) February 7, 2021
In particular, Novogratz commented on investments in the DOGE cryptocurrency, whose rate jumped 27% to $ 0.074 per day. According to Novogratz, the “madness” around DOGE will end badly for investors.
The greed of investors and the lack of purpose for the dogecoin project will ultimately lead to a repeat of the GameStop stock scenario, he stressed.
Cryptocurrency market madness
Novogratz believes that the crypto community should focus exclusively on three areas: bitcoin, ether and the DeFi market. However, for which coins from the segment DeFi worth noting, Novagraz did not clarify.
“There are many smart ways to capitalize on this crypto rally,” he said.
Recall that earlier the founder of Tesla and SpaceX, Elon Musk, posted a tweet about DOGE on Twitter. Almost immediately, the price of the cryptocurrency reached an all-time high. However, it’s worth noting that this isn’t the first time Musk has written about DOGE.
Musk’s January tweet likely played positively on DOGE due to the surge in retail trader activity. Last week, traders on Reddit decided to joke with a rally of losing stocks like GameStop. The joke cost some hedge funds billions of dollars, and the GME itself soon plummeted 80%.
Not only DOGE
However, the hype in the cryptocurrency market is not limited to DOGE. During the day, the price of the Cardano token (ADA) also jumped by 75% to $ 0.66. Over the weekend, the token came in fourth in terms of market capitalization, leaving XRP behind.
It is noteworthy that along with the rise in the ADA price, the number of cryptocurrency traders also reached a multi-year high. In February, ADA’s turnover even exceeded the 11.82 billion token mark (33.8% of the supply volume).
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