Are public figures problematic for investors?
Crypto has taken more than a few hits almost tanking the market. However, this is not stopping public figures from public backing their favorite coins influencing new and seasoned investors to invest. After the projections of Dogecoin reaching one dollar at the beginning of May, public figures such as Mark Cuban and Elon Musk encouraging investments in Dogecoin and it was promising that the coin would reach one dollar on the weekend of May 10, 2021. Cuban demonstrating his support on multiple occasions on Twitter. This was also the same weekend that Musk was to appear to host SNL however during his appearance on the broadcast the Dogecoin fell 40% according to CNN.com trading as low as 44 cents the following Sunday a far cry from the 70 cents high the day before. This brings to question, should investors trust the influence of public figures?
Erica Ervin, a resident of Ohio who has been investing in digital currency since 2013 and is now looking into mine her own coin stated the following, “I think everyone following Dogecoin thinks Musk’s words/actions were more influential and detrimental to the entire crypto market than Mark Cuban’s interest and sponsorship. People watch and listen to Musk because he’s eccentric and they can’t look away, but I’m always shocked to see how much people will risk for him.”
Damon Handy a local resident of California has been investing in Cryptocurrency since 2016 this was becoming mainstream. He started investing in Bitcoin (BTC) and Ripple (XRP) respectively. When asked about the recent popularity and influence of Crypto he stated the following, “I’m actually excited to answer this question! Because yes but at the same time not at all. 99% of people are essentially just here for the ride. It may be because of excitement, curiosity, or even sometimes social acceptance. It’s my goal to never be on that same ride. When the majority is moving a certain way I’m asking “why?” and then I figure out the answer to my why by mainly looking in the direction that makes the most sense to me when looking at the charts. Sometimes the profitable direction is in the complete opposite direction of where the mainstream media is saying it’ll go so I make it a point to trust myself and my analysis.”
Handy analysis of the profitable direction and social media has proven to be correct as Dogecoin has not reached the high that it once had during April and the first two weeks of May. This hasn’t stopped the Musk who has called himself the “ultimate holder” and “hasn’t and will not sell any Doge” according to reuters.com. Also, with #BuyTheDip and #DogeLaserEyes trending on Twitter over the weekend encouraging investing in Dogecoin it is clear the public influence still has a stronghold. Ervin still looks to social media to have a pulse on what happening in the virtual currency world “ One of the biggest indicators of a currency’s value is how much people are talking about it on social media. For all of the currencies I choose to purchase, stake, or mine, I’m always looking for lots of social media discussion surrounding that currency and lots of input from the currency developers.”
Investors have been launching a Twitter Campaign in support of Dogecoin will rise to that one dollar. Handy stated the following when comes to these trending hashtags “I would never suggest buying the dip without true knowledge and intention. If you take the time to study you will clearly know why. That’s a clear example of mainstream media and the collective not having control over their own emotionally fueled impulses.”
However not all hope is lost for Dogecoin, Bitcoin, and others though it has been a tumultuous month for Cryptocurrency causing many to either panic sell, hold and encourage investors to buy the dip. This is still a very exciting time for investing and Handy agrees ending with the following statement “I love the game… I love to hustle… and so do the whales, the banks, the hedge funds, etc. Not knowing what to do will most likely result in a negative experience. Yes, people who didn’t have a clue of what they were doing made tons of money. There are plenty of new millionaires but please realize that we are past that point for the most part when talking about Bitcoin. Dogecoin still has that potential but it’s fading. That being said – Stay positive, have fun, and follow your heart because more opportunities are on the way.”