Viral TikTok Video Boosts Dogecoin Price By 20%, Volume Up 1,900%

KEY POINTS

Dogecoin's volume increased by 1,900% and its price by 20% after viral videos on TikTok encouraged users to invest atleast $25
The advice told users to "ride the wave" until Dogecoin reaches $1 apiece, after which the original $25 would become $10,640
Analyst warns cryptocurrencies are highly speculative and it is unwise to take financial advice from TikTok videos

The cryptocurrency Dogecoin (DOGE) experienced a massive 1,900% increase in volume and 20% rise in price after viral videos that encouraged users to invest in the speculative coin surfaced on social networking site TikTok.

Dogecoin, classified by its founder as a “joke cryptocurrency”, experienced movement after a video on TikTok created by user James Galante encouraged people to invest at least $25 and then "ride the wave" until the coin’s value reached $1 apiece. At that price, everyone who invested $25 would get a profit of $10,640.

According to Galante, Dogecoin’s price is currently worthless at $0.0023 and there are 800 million TikTok users. “Once this stock becomes 1 dollar, you’ll have 10 grand,” he noted on the video, before telling his viewers to inform everyone they know.

Dogecoin began to rise in value after the video went viral, reaching $0.0055 on Binance. Currently, the price seems to be decreasing and trading at the $0.0042 level, still higher than where it was prior to the video’s release.

The #dogecointiktokchallenge currently has 504,000 views on TikTok. The campaign has also transitioned to Twitter.

According to Coindesk, search interest for “how to buy dogecoin” has skyrocketed to 100, the highest possible score. Intense speculation drove Dogecoin’s value up and, according to former Bloomberg Analyst and Delphi Digital co-founder Ani Lulla, its rise proved speculation was still king in the industry. “The recent rise of dogecoin, a meme coin, should serve as a reminder to everyone in the space that the most popular use case for crypto is still purely speculation,” she told Coindesk.

At the current price of $0.042, Dogecoin’s value has increased by 287% since March 12.

Dogecoin was created by programmers Jackson Palmer and Billy Markus in 2014, who abandoned the project. The coin gained a cult following and activity was driven largely by users. Last year, even Tesla and SpaceX founder Elon Musk stood in as its joke CEO and called Dogecoin his favorite cryptocurrency.