The doge frenzy has finally arrived in the Indian cryptocurrency space!
Named after a popular meme (based on the Japanese dog breed Shiba Inu), the value of Dogecoin cryptocurrency token has increased by a whopping 10X in the last three months, with its market cap now standing at close to $80 billion as of Thursday.
On Wednesday, Binance-backed WazirX’s Doge/INR trading slowed down the entire system as it witnessed record-breaking traffic on these platforms. And that was followed by outrage from the Indian Twitterati, which complained about unexecuted Doge trades. The hashtag ‘#WazirXScam’ started trending on the microblogging social media platform soon after.
Nischal Shetty, Founder of WazirX, said that the company is currently busy rearchitecting the platform to deal with the expected surge on May 8th, something which could easily double or tripled from what the platform witnessed on Wednesday.
Furthermore, Shetty also said that he estimates Dogecoins worth Rs 600 crores has been traded on the WazirX platform within the last 24 hours. But that being said, there still exist a few Indian crypto trade platforms, such as ZebPay, which are steering away from listing Dogecoin despite investor interest.
When asked about the same to Viram Rangala, COO of ZebPay, he mentioned that the company might list the token in the near future, but before that, he’d like to make sure it isn’t the Tulip Mania of the 21st century (one of the most infamous market bubbles and crashes of all time during the 1600s)
Interestingly, unlike other mainstream cryptocurrencies in limited circulation, which makes them a storehouse of value, Doge’s use cases are severely limited to tipping made available on Twitter and Reddit quality content.
Dogecoin’s official website describes the token as ‘an open-source, peer-to-peer digital currency, favoured by Shiba Inus worldwide.’
According to Coinmarketcap.com, currently, there exists a whopping 129 billion Doge tokens and that more dogecoins can be mined. Nonetheless, the lack of regulation regarding crypto makes Doge an unstable investment quite similar to other cryptocurrencies.
Nithin Kamath, CEO of Zerodha, one of the oldest online brokerage firms, said that he could not make sense of the ongoing frenzy with Dogecoin. He also expressed that he is worried about the multiple red flags, such as no checks being place and a probability of the coin being a ‘pump and dump’ scheme.
According to Kamath, the best way to play it would be to make sure not to allocate more than 1-5% of their liquid net worth to such assets, which are highly speculative in nature.
All in all, it is well understood that crypto fever has finally taken over India, especially traders who are under 25, and it seems like it is only going to blow up even further going forward. We will keep you updated on all future developments. Until then, stay tuned.