The meteoric rise of dogecoin this yr is “undoubtedly a mania,” crypto bull Meltem Demirors informed CNBC on Monday, saying there’s a purpose her digital asset funding firm has stayed away.
Dogecoin, which was began as a joke in 2013, grew to become in style on social media across the time of the Reddit-fueled buying and selling frenzy involving GameStop and a few different so-called meme shares. Tesla CEO Elon Musk and other celebrities have posted favorably about dogecoin, too.
“It’s a traditional form of bubble, in my opinion,” mentioned Demirors, chief technique officer at CoinShares. “I’m not saying it’s good or dangerous. … Dogecoin just isn’t for me. My firm doesn’t produce evaluation on dogecoin for a purpose. We haven’t got a dogecoin [exchange-traded product] available in the market. We do not commerce dogecoin.”
Dogecoin has soared round 5,600% this yr as it traded round 27 cents per token Monday morning, in accordance with knowledge from crypto information website CoinDesk. Its all-time excessive was reached earlier this month round 45 cents. At the beginning of 2021, dogecoin was value fractions of a penny.
The ascent of dogecoin from relative obscurity to the seventh-largest cryptocurrency by market worth — as of Monday, in accordance with CoinMarketCap — has turned heads and served as fertile floor for some crypto skeptics to query the rise of digital belongings basically.
However, even longtime believers in bitcoin and different cryptocurrencies akin to Demirors and Galaxy Digital CEO Mike Novogratz have sat out of the dogecoin rally. Novogratz told CNBC last week the dogecoin scenario “is much more weird” than what occurred with GameStop.
“At the tip of the day, we’ve got these retail manias, and I believe what’s taking place with dogecoin is certainly a mania and we see this mirrored within the worth,” mentioned Demirors, including it reveals for some folks that “investing is leisure.”
CNBC’s Jim Cramer, additionally a believer in bitcoin, mentioned Monday he is not shopping for the dogecoin story in any respect.
“I believe dogecoin is sport,” he mentioned on “Squawk on the Street,” including that purchasing the digital asset is definitely playing, not investing. “A enjoyable recreation is playing, and I do not consider that playing must be inspired.”
Earlier this month, the “Mad Money” host revealed that he paid off a mortgage utilizing income on a few of his bitcoin holdings.
