Dogecoin rose to an all-time high of $ 0.69, according to CoinMarketCap data, and ranked fourth, surpassing XRP in the list of largest cryptocurrencies in terms of market capitalization. The market cap of cryptocurrency has even surpassed giant companies like Nintendo, Coinbase and FedEx.
DOGE, which has been rallying since the beginning of the year with the support of famous names such as Tesla CEO Elon Musk, provided investors with a return of over 14 thousand percent in about four months. Mike Novogratz, CEO of Galaxy Digital, a financial services and investment management company operating in the crypto industry, believes that this performance of crypto money carries a message to the traditional financial system.
Novogratz compared Dogecoin to GameStop during an interview with CNBC on May 5. Last January, Reddit users were organized to send a message to traditional fund managers, and they intensely bought shares such as GameStop (GME), where these companies took short positions, causing a short position squeeze. The fact that trading practices such as Robinhood stopped buying these stocks further fueled the arguments that the traditional financial sector was not inclusive enough.
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“We need to listen to what Dogecoin is telling us. It tells the same thing as GameStop. A group of young people say, ‘Hey, we’re going to invest our money in this,'” said the Galaxy Digital CEO.
“People are pointing the middle finger to the system with Dogecoin. They are not satisfied with the current financial system.”
Novogratz, on the other hand, is concerned about the enthusiasm for Dogecoin, which has no development work on it, does not receive institutional investment, and is only a store of value for generations Y and Z. Still, he thinks it’s dangerous to take short positions for the cryptocurrency.
Dogecoin is trading at $ 0.60 as of the time of the news release.