Why Dogecoin Is Plummeting This Week
The cryptocurrency Dogecoin (CRYPTO: DOGE) saw its value sink this week. The meme coin is trading 15.5% lower as of 4:40 p.m. ET on Jan. 23 but was down as much as 17.5% earlier in the week. The slump comes as the S 500 gained 2% and the Nasdaq 100 gained 2.1% on the week.
Dogecoin is feeling the pressure of high-profile entrants into the meme coin space this week weakening its main value proposition in some investors' eyes.
Trump released his meme coin days before he was sworn in as president. Named Official Trump, it has the ticker $TRUMP. The token is intended as a meme -- made very clear by Official Trump's website -- not as a serious financial instrument. But as we've seen with Dogecoin and others, memes can be lucrative under the right circumstances.
Source Fool.com
