The Brief: A TikTok challenge urging people to invest in the cryptocurrency Dogecoin contributed to a rise in the value of the currency.
TikTokers are investing in cryptocurrency as they join the Dogecoin TikTok challenge in an attempt to make a profit by raising its value.
What Is Dogecoin?
Dogecoin is an open-source digital currency represented by the meme-famous Shiba Inu known as Doge. The cryptocurrency is advertised as a decentralized, peer-to-peer digital currency. Doge was chosen as its mascot due to his meme relevance and overall cuteness. Elon Musk has publicly voiced his support for the currency. A popular motto for Dogecoin is “to the moon,” which refers to imagery of Doge in a rocket and the idea of the coin’s value rising dramatically.
Dogecoin Challenge On TikTok
In late June 2020, a TikTok challenge known as the Dogecoin Challenge encouraged people to invest in Dogecoin. Popular videos urged people to buy Dogecoin on July 6th, suggesting that if they invested $25, if Dogecoin went up to $1, they’d have over $10,000. At the time of writing, videos associated with the hashtags #DogeCoin and #DogeCoinTikTokChallenge have been viewed over 7 million times.
TikTokers hopped on this idea, creating more videos and investing in the currency. Reports have indicated that Dogecoin’s volume rose with a 683% increase from its average user volume on July 8th. The price of Dogecoin surged as high as 71%.
The Dogecoin Twitter account tweeted a disclaimer for investors to be wary of such market surges, encouraging them to “stay safe” and “be smart.”
Be mindful of the intentions people have when they direct you to buy things. None of them are in the spot to be financially advising.
Make choices right for you, do not ride other peoples FOMO or manipulation.
Stay safe. Be smart.
— Dogecoin (@dogecoin) July 8, 2020
Dogecoin has always been embedded in meme culture so it makes sense that it would be the center of a TikTok meme. Whether or not investors will get the results they’re hoping for has yet to be seen.