Crypto Collapse: 2 Reasons to Sell Dogecoin
As they say, what goes up must come down. And cryptocurrency is no exception -- with its total market cap cratering roughly 56% to $980 billion year to date. That said, not all coins are the same. Dogecoin (CRYPTO: DOGE) faces specific challenges that could make it a particularly bad way for investors to bet on a potential rebound in the industry. Let's dig deeper.
Originally founded to satirize the wild speculation in the crypto industry, Dogecoin is the original "meme coin" -- a type of cryptocurrency that relies on hype to attract investors instead of technical advantages. The asset benefited tremendously from the efforts of Tesla's CEO, Elon Musk, who frequently tweets in its support. However, the enthusiasm has proven to be unsustainable without fundamentals to back it up. And macro-level challenges could make the situation even worse.
Image source: Getty Images.
Source Fool.com
