The price of the Dogecoin cryptocurrency grew more than 27 percent in recent days, after the businessman Elon Musk placed the image of the asset as the official logo of Twitter. Despite this, Dogecoin continues to be a high-risk asset, so it cannot be considered a viable tool for saving or investing, said Eloísa Cadenas, director of fintech Monetae.
“Confidence in the stability of that crypto asset is proportional to the state of mind of a single person (Elon Musk). That is not very serious, ”he explained.
Dogecoin was born in 2013 as a parody of cryptocurrencies, according to specialists. The digital asset has distinguished itself because its price increases every time Elon Musk, owner of Tesla and Twitter, declares in favor of the cryptoactive. After the decision to put Dogecoin as the logo of the social network, the cryptocurrency appreciated up to 27.05 percent, according to information from Binance. However, the digital currency has lost 48.10 percent of its value in the last year.
➡️ Subscribe to our Newsletter and receive the most relevant news in your email
“Despite the fact that Elon Musk has said that it can be turned into a crypto asset to make transfers and payments, this is only an idea,” Cadenas said.
The analyst also pointed out that Dogecoin can undermine the confidence of other cryptocurrencies, since this type of cryptoactive is “confused” with Bitcoin and it can be thought that it is the same digital currency.
