Under the title "The People's Coin Awaits Elon Musk: Will Dogecoin Approach One Dollar Soon?", the Al-Hurra website published news indicating that in mid-April, Ryan Negri, one of the most famous investors in cryptocurrencies, celebrated the leap that Dogecoin made after he decided to purchase it a month prior to the rise. Negri describes his experience as "entertaining," stating to Al-Hurra that he started trading Dogecoin when its price was $0.05 and continues to invest in it. The value of Dogecoin rose from around $0.05 in mid-March to $0.40 by mid-April.
Negri highlighted in his celebratory tweet about the rise of Dogecoin the names of two prominent supporters of this currency: billionaire tech mogul Elon Musk, who predicted that Dogecoin will lead cryptocurrencies in the future, and American businessman and billionaire Mark Cuban, owner of the Mavericks basketball team, which has started using this currency in its financial dealings. Bilal Rahal, director of Rahal Group for financial brokerage, told Al-Hurra that all cryptocurrencies have achieved strong growth since the beginning of this year, with Dogecoin rising nearly 900% in less than a month.
Rahal attributed "the main reasons for Dogecoin’s rise to the support from Elon Musk and other celebrities" through their tweets. However, he sees this as a "problem," pointing out the "rush of inexperienced individuals in the cryptocurrency world to buy coins based on tweets." Rahal emphasized the necessity of focusing on what he described as "the most important factor," which is the cryptocurrency's project and its features, saying: "Many cryptocurrencies are better and more important than Dogecoin for investment and use." He expressed concerns that Dogecoin might turn into a bubble.
In the same context, Yasser Al-Taba'a, an expert in cryptocurrencies, agrees with Rahal's concerns, stating to Al-Hurra that the hype surrounding Dogecoin is due to Elon Musk's publicity, as he is one of the most famous and wealthiest figures in the world. He added, "Many people follow Musk's tweets without having knowledge about what they are buying," which Al-Taba'a describes as dangerous in the business world.
Will it reach one dollar?
However, Negri believes that the hype surrounding this currency is "positive," stating: "No one thought Dogecoin would surpass one cent, then 10 cents, then 50 cents, and now perhaps it will reach one dollar in a few weeks; no one expected this, not even the founder who sold most of his holdings of this currency to buy a car years ago." Al-Taba'a commented on this by saying: "For Dogecoin to reach one dollar would mean its market value would be enormous enough to equal the combined values of dozens or hundreds of companies around the world, which is not logical."
Investors in this currency are awaiting an announcement from Musk as part of his participation in Saturday Night Live this coming Saturday. Despite Al-Taba'a's skepticism about Dogecoin reaching one dollar, he mentioned that the cryptocurrency market, which has come to be known as a bull market, is witnessing strange changes that no one can predict. He expects this currency to experience a severe decline in the near future, saying: "I usually do not advise this, but it has risen and things have become illogical."
In contrast, Negri believes that everyone should buy Dogecoin "just for the experience and to be part of something bigger than themselves." Al-Taba'a stated that Dogecoin began trading in 2013 as a miniature version of Bitcoin, and that its name and logo (a picture of a dog) were merely a joke. Dogecoin persisted for many years without recording a rise or attracting significant interest, he says, "It was akin to penny stocks or cheap stocks that some people favor, and indeed its value was less than a cent several years ago."
Al-Taba'a also attributed the recent rise of the currency to a challenge initiated by users on the TikTok app, aiming to raise Dogecoin's value to one dollar, leading to a surge in its value of around 600 to 700% within days. Negri describes calling Dogecoin "the people's coin" as extremely clever, noting that the Mavericks and Oakland Athletics teams' reliance on this currency adds "great value and benefit" to it.
While Negri believes that support from some public figures helps cryptocurrencies, he is uncertain whether celebrities wish to do so to develop their brand. In this context, Al-Taba'a said: "If celebrities try to inflate certain stock prices and it is later discovered that they own shares, they typically end up in jail." However, the picture regarding cryptocurrency dealings remains unclear, despite occurring manipulation, according to Al-Taba'a.
He prefers that celebrities refrain from advertising cryptocurrencies "because some people could lose real money, ultimately harming investors and the market in general." Al-Taba'a provided several tips when purchasing cryptocurrencies, stating:
1) Invest an amount you can afford to lose; this field is highly risky, so do not borrow money to invest or buy currencies with a credit card; don't purchase currencies with most of your money.
2) Remember that all markets experience downturns, and among these markets is the cryptocurrency market, which witnessed a significant bubble in 2017 and 2018, where currencies lost 90% of their value, and many cannot bear such a loss.
3) You must know what you are buying and why, what distinguishes this currency, its value, and its function, whether it is used by companies or just endorsed by figures like Elon Musk to promote its purchase.
4) Investors should forget about the currency for a while, rather than constantly tracking its ups and downs, and learn how to deal with cryptocurrencies.
Al-Taba'a recommended following large fund investments, such as the Grayscale Bitcoin Fund, stating that this fund has deposits exceeding $30 billion in cryptocurrencies, most of which are Bitcoin, which recorded a high slightly below $65,000 last month, followed by the Ethereum cryptocurrency, which reached a record high of $2,683.65 last month.
