‘Dogecoin millionaire’ refuses to sell and continues to buy the dip

Since changing into a "dogecoin millionaire" on April 15, Glauber Contessoto has continued to maintain somewhat than sell — regardless of the coin's ups and downs, he tells CNBC Make It. And now he says he's a millionaire twice over.

Contessoto says he invested over $180,000 in dogecoin on Feb. 5, when it was priced at about 4.5 cents, and hasn't regarded again.

"I had already anticipated that [dogecoin] would drop," Contessoto, 33, says, "and sure enough, it happened."

Indeed, after reaching an all time excessive of about 73 cents on Saturday in anticipation of Elon Musk's look on NBC's "Saturday Night Live," dogecoin then fell under 50 cents as the Tesla CEO known as the cryptocurrency a "hustle" on TV.

Contessoto likened what occurred round SNL to what occurred with the worth round the community-proclaimed "Doge Day," April 20.

"The whole week leading up to it, everyone was hyping it up, prices going up, and then it crashes," he says. "It's the same pattern."

On Thursday, dogecoin continued its decline under 40 cents after Musk introduced that Tesla would now not settle for bitcoin as fee for its autos over environmental considerations.

But the worth then began to go up once more Thursday night time after Musk tweeted that he's "working with doge devs to improve system transaction efficiency. Potentially promising." Musk had not too long ago taken a Twitter ballot as to whether or not Tesla ought to settle for dogecoin.

This volatility is a motive why specialists are very skeptical of dogecoin, much more than different cryptocurrencies, saying it's extremely speculative and a so-called meme commerce primarily based on social media buzz. They warn that buyers might get burned.

For occasion, Mike Novogratz, a crypto bull and founder and CEO of Galaxy Digital, beforehand advised CNBC's "Squawk Box" that whereas bitcoin is "a well-thought-out, well-distributed store of value that's lasted for 12 years and is growing in adoption," whereas dogecoin "literally has two guys that own 30% of the entire supply." Bitcoin additionally has an intensive and well-funded ecosystem that doesn’t exist with dogecoin, he stated. And dogecoin doesn’t have a provide cap like bitcoin does, all of this making it a far more dangerous funding, in accordance to specialists.

But the volatility doesn't fear Contessoto, and he's very bullish on the meme-inspired cryptocurrency long-term. In reality, he has since spent more cash shopping for the dip — on Sunday, for instance, he invested one other $14,000 when dogecoin was buying and selling round 47 cents, he says.

Contessoto says he used cash he earned by promoting different cryptocurrency he owned, together with cash leftover after paying payments from his day job paycheck, he says. (Contessoto works at a music firm in Los Angeles.)

"It's taken me a long time, but I've learned how to stomach things like this," Contessoto says. "The only way you're going to guarantee your profit is holding long-term, like Warren Buffett has said about stocks. And I believe that wholeheartedly." (Buffett just isn’t a fan of cryptocurrency and says it has no worth.)

As of about 7 p.m. EST on Thursday, Contessoto's dogecoin stability is over $2.03 milion.

A screenshot of Glauber Contessoto's dogecoin holdings on buying and selling app Robinhood.Courtesy of Glauber Contessoto.

Contessoto is assured that dogecoin will stay a prime cryptocurrency, he says, though it began as a joke in 2013 primarily based on the "Doge" meme of a shiba inu canine.

"People always ask me, 'Why are you so bullish? Why do you think dogecoin is going to take over?'" he says. "I believe that memes are the language of the millennials. Memes are the language of our generation, of Gen Z. I truly believe that."

Indeed, "for dogecoin, the meme is the message," Meltem Demirors, CoinShares chief technique officer, beforehand advised CNBC Make It. "As the influence of FinTwit [financial industry twitter] grows, so will the memes and the way they move our markets."

"Doge is powered by the regular, everyday person, retail investor that just wants to make a difference for themselves and a difference in the world," he says. "Doge is the most fun crypto. And if you don't get that, you're probably not a very fun person, I'm sorry."

Along along with his ongoing love of memes, Contessoto additionally stays impressed by Musk.

If Musk permits Tesla to settle for dogecoin, which some suppose his most up-to-date tweet indicators, "that's going to be the biggest catalyst ever," he says. "That would just flip everything on its head."

Contessoto says he’ll sell 10% of his dogecoin holdings as soon as he hits a $10 million worth, however will go away the relaxation invested.

"I'm the birth of the new investor. I'm the new retail investor," he says.

"It means more to me to actually hold, to stick to my word, than it does for me to make a profit right now. I'm doing this for the dogecoin community. I'm doing this for everybody that wants to change the way things work with the economy and fiat currency. I feel like I represent that little guy. I came from nothing and made something," he says.

Nonetheless, cryptocurrency is a dangerous funding, in accordance to specialists, as a result of the worth is extremely risky. Experts warn buyers to proceed with warning earlier than shopping for dogecoin, deeming its rally to be extremely speculative, and advise that folks ought to solely make investments cash that they will afford to lose.

Dogecoin is at the moment buying and selling at round 49 cents with a market worth of $63 billion, in accordance to CoinMarketCap.

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primarily based on web site supplies www.cnbc.com

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