Last week, stock markets in the US woke up bleary eyed, confused as to what had just happened. Regular investors, pumping in cash and buying up stocks through mobile apps, had somehow caused multi billion-dollar hedge funds to lose billions of dollars in the coordinated short squeeze.
GameStop wasn’t even the end, and over the last few days, Reddit has been rejoicing over their victories, turning their attention to crypto markets. And the benefactor? Good old meme-inspired Dogecoin, which had already been enjoying some pump action in 2020 from TikTok and even an Elon Musk tweet.
Who let the Doges out?
Musk did come out with the caveat that one of the world’s oldest alternative cryptocurrency was “made as a joke”, but also said that if DOGE became a “currency of earth in the future”, then it would be delicious irony. The Tesla CEO could not have known it, but the architects of the GameStop fiasco managed to rally support around DOGE buying on major exchanges, so much so that DOGE has risen almost 2000% in a week — trading as much as 0.000002 BTC before coming down to a still heady 0.0000012 as of time of writing.
Several branches of the original WallStreetBets subreddit sprang into action via other subs like SatoshiStreetBets, where Dogecoin has been and still is regularly pushed as the next Wave to eclipse GameStop.
The whole event seems to have demonstrated that retail investors, when put together in unified action, can still shake markets at will — proving that even with institutional interest at an all time high for Bitcoin, average traders can still show up to make a quick buck.
But while the numbers are dizzyingly impressive, and profits seem easy there for the taking — only if you follow the trail, the burning question on amateur crypto traders is: “is it worth looking into?”
Crypto marketing at its best.
As a company that believes in and practices professional crypto marketing, we at CryptoMarketeer concede that the whole series of events over the past week has been a wonderful example of crypto marketing done right. Dogecoin is a memecoin. The crypto space loves memes. And reddit is full of loyal (and risk-loving) followers.
But this isn’t to say that this sort of marketing will last. Indeed, the DOGE rally has already looked like it’s losing steam, coming down 50% from its all time high versus Bitcoin. In the end, this is still a speculative activity, with very little in ways of intrinsic value to back the market price.
Once these Redditors move on, it’s almost for certain that DOGE will return to its meandering ways on the market. And the fallout for investors could be painful! After all, actual investors think on long-term strategy and inside knowledge, while this Reddit rally is riding on a wave of optimism, nothing more.
Of course, there’s nothing to stop them from enjoying even more profits in the short term, and they certainly will — but if you’re thinking about long-term and sustainable growth for your crypto project or token, don’t be tempted to go the WallStreetBets way. Instead, invest your time and resources to build on strong fundamentals, like a good online presence and clear, lasting content that puts you in good stead for the future.
This way, you can ensure you not only build a profitable business, but a business that will remain profitable while enhancing your reputation for credibility. Lest we forget, crypto is still in its infancy and we all know crypto still needs as much credibility as possible if it’s to remain here for the next decade, ushering in the new era of finance.
If you understand and believe in blockchain, then you and your business should be in for the long haul. Rallies like what’s going on now, along with the odd FUD headline every now and then isn’t going to affect your long game.
If you’re curious about how we can level up your blockchain business with serious marketing, let us know and let’s have a chat!
