In the earliest days, man traded items through the barter system in a peer-to-peer manner, a decentralized system that cryptocurrencies are trying to return us to. Advances in human caste systems ushered in financial oversight by central authorities, and every transaction is not just being monitored by these bodies, but the majority of the gains that came through such transactions.
Recently, a community of crypto enthusiasts, organized in a Reddit chatroom dubbed SatoshiStreetBets decided to pump the price of Dogecoin (DOGE), a Shiba Inu-themed cryptocurrency created as a joke in 2013. The pumping action was to imitate a similar move by r/WallStreetBets Reddit chatroom that sent the shares of GameStop and other heavily shorted stocks to new highs, in rebellion to hedge funds that make money through betting bearishly on such stocks.
Did The Dogecoin Pump Have Any Impact?
While the pump of GameStop shares was sustained for a few weeks, the Dogecoin pump had a relatively shorter impact, rising by as much as 800% at the height of the entire retail buy-ups. Dogecoin is often embroiled in a pump and dump action, a scenario that is usually masterminded by Elon Musk, the founder of SpaceX and electric vehicle company, Tesla Inc.
The retail mob that pumped the price of Dogecoin in a bid to make it hit an all-time high of $1 per DOGE had quite a shallow motivation, when compared to the GameStop retail mob, but there are obvious lessons to pick from the action of both independent social media communities.
Lessons Learnt Per the Dogecoin Reddit Pump
A major highlight of the pump is that united fronts to achieve any goal can be met with little resistance over time. Although the massive price growth was unstainable, there is a growing awareness of how crypto enthusiasts can unite to drive home a change, irrespective of the agenda.
Driving home cryptocurrency initiatives may require the revolutionary unity that was exhibited by the Dogecoin pumpers, and in all, people power has a lot to offer the cryptocurrency ecosystem in its quest for mainstream adoption.