A contributor to Dogecoin, known on social media as @Mishaboar, has issued a warning to people trading DOGE and smaller-market-cap joke currencies via an X/Twitter post.
This caution specifically relates to trading meme coins that appear on cryptocurrency exchanges very quickly.
Warning about meme coins surging in market caps quickly
Mishaboar specifically cautioned his followers against purchasing “tokens that go up to crazy market caps.” He went on to say that there is currently “an explosion” in them since they get listed on major exchanges almost immediately (in a matter of days). He emphasised that occasionally these exchanges list them in spite of glaring warning signs.
Mishaboar interprets this to suggest that venture capitalists and the exchanges themselves are backing these meme currencies. The expert goes on to say that often, they control a large portion of the supply of these tokens and may make agreements with exchanges even prior to the currencies’ official release.
https://x.com/mishaboar/status/1782835678335598620
Mishaboar goes on, “This strategy helps these VC investors to generate easy profits.” They work together on X/Twitter and other social media platforms with prominent bitcoin influencers. Since traders provide liquidity inflows to exchanges, which practically costs anything for these trading platforms, this is also advantageous to exchanges.
These cryptocurrency influencers are compensated for endorsing these currencies to their followers and asserting that their respective crypto communities manage them. The Dogecoin army is cautioned by Mishaboar to use caution when exchanging these currencies. “Trading with these assets carries risks; exercise extreme caution,” he advises.
300 million DOGE shoveled to Robinhood
Prominent cryptocurrency tracker Whale Alert discovered an incredible 300,000,000 Dogecoin lump shovelled into the Robinhood investing platform earlier today. Either selling the asset now or a little later, or just keeping it on Robinhood for the investor, are the two possible outcomes of this transaction. The value of these meme coins is equal to $47,921,394.
According to a previous U.Today story, Mishaboar verified that Robinhood had the biggest Dogecoin wallet, holding over 30% of the total amount in circulation.
Meanwhile, DOGE is still trading sideways and is having difficulty rising over the $0.1624 price level.
The Bitcoin parody cryptocurrency is trading at $0.1608 on the Binance platform as of this writing.
