Dogecoin is back in the spotlight this week, with prices shooting up over 24% in just seven days. Today alone, the coin has gained an additional 11%, making it the top performer among its peers. The reason for this sudden rise seems to be tied to Elon Musk once again. His recent promotion of the so-called “Department of Government Efficiency” (D.O.G.E.) has stirred up excitement, especially after he repeated the term at the America PAC Town Hall.
For those following Elon Musk, this isn’t new. He’s mentioned D.O.G.E. before on X, but it didn’t affect the market right away. What changed is that Musk has been repeating it more frequently, and now, there’s a political angle. Donald Trump, whom Musk has supported financially, has even suggested that Elon could help run a “government efficiency commission” if he wins a second term. While some brushed this off as a joke, it seems there might be more to it – Donald Trump indicated he is serious about working with Elon if he wins. And if a real D.O.G.E. department gets created, it’s clear that the cryptocurrency’s name will get even more attention.
But let’s be realistic here. There’s no concrete connection between a possible government department and Dogecoin’s value. It’s likely just the hype surrounding Musk and his influence on the market driving up the price. That’s not a bad thing for traders, but it’s a fragile type of growth, one that depends on memes and buzz rather than solid foundations.
The Rise of Sponsored Articles
Alongside Dogecoin’s latest surge, there’s been an uptick in questionable sponsored articles. Many of these are pushing presale tokens, promising the next big thing. Some of these sources aren’t exactly reputable and make risky claims about the supposed profit potential of coins that don’t even exist yet. This kind of speculation has burned plenty of investors in the past, and, in some cases, these presales have turned out to be scams (we’ve warned about some of them).
So, if you’re thinking about speculating on meme coins, it’s better to focus on smaller, established ones rather than throwing your money at presales just because an article told you to. The potential losses from investing in something that doesn’t even exist yet are too high.
If we’re talking about questionable news articles, let’s also mention those promising insane gains on Dogecoin itself. It’s important to be realistic. While DOGE can gain a lot, as it is a memecoin fueled by hype after all – it’s not very likely for it to repeat its 2021 rally – and we explained why in this article. By knowing what’s realistic you can earn more money by selling at the right time – not waiting for fantasies to come true.
