Dogecoin to $1? Mark Cuban predicts so as his NBA team becomes the largest DOGE merchant, while McAfee said he touted it before Elon Musk.
Dogecoin has become the center of attention of famous individuals once again. Mark Cuban said that his NBA team had become the largest DOGE merchant, Elon Musk made an electronic-god reference, while John McAfee used its growing popularity to defend his alleged pump and dump schemes.
McAfee Touted DOGE Before Musk
The love story between the CEO of Tesla and SpaceX and the popular meme coin is well-known within the cryptocurrency space. Musk has outlined his support for the asset on multiple occasions.
While some believed that the positive engagements with DOGE came from his trolling nature on social media platforms, Musk has repeatedly found different ways to promote the token. The latest one came on Saturday, as he said that “Doge spelled backwards is Egod.”
His support brought more famous individuals to the scene as well – names such as Snoop Dogg and Gene Simmons. Despite the long-term relationship between Musk and Doge, though, John McAfee recently highlighted that he touted the asset long before Tesla’s CEO.
Much of the new allegations from the Feds are about my "coin of the day". For a few days in 2017 I chose coins I believed had value.
One of them was Doge – now being touted years later by Elon Musk. The coin has increased well over 1000% since I chose it.
McAfee was indicted days ago from the US DOJ for multiple criminal offenses, including his alleged involvement in pump and dump schemes with his “Coin of the Day” campaign. Several years ago, the former antivirus tycoon promoted small-cap altcoins that he supposedly believed were undervalued, but US authorities claimed that he made more than $13 million from illicit schemes.
McAfee argued that the allegations are “overblown” and that he indeed considered those coins to have immense potential. One of them was Dogecoin, which, in his words, “has increased well over 1,000% since I chose it.” Ultimately, he concluded that this was “not a pump and dump.”
Mavs Are the Biggest DOGE Merchant
Another Doge-related engagement from high-net-worth individuals came from the owner of the Dallas Mavericks – Mark Cuban. The billionaire and his NBA team recently announced that they had started accepting Dogecoin payments for game tickets and merchandise on the online store.
A few days later, Cuban updated the community on the performance of this new initiative. He said that the Mavs had received more than 20,000 DOGE in transactions, making them “the largest Dogecoin merchant in the world.”
Furthermore, the start of the reality TV series Shark Tank predicted that DOGE will “definitely” reach $1. With a current price of $0.056, the asset would need a 1,700% increase to reach that milestone.
The @dallasmavs have done more than 20,000 #Dogecoin in transactions, making us the LARGEST #DOGECOIN MERCHANT IN THE WORLD ! We thank all of you and can only say that if we sell another 6,556,000,000 #DOGECOIN worth of Mavs merch, #dogecoin will DEFINITELY HIT $1 !!!🚀🚀🚀
In one of our recent commentary issues, we analyzed why sticking it to Coinbase and Ripple wasn’t really the best move on the SEC’s part. In this month’s issue, however, we’ll be assessing which class might end up being the next target of the same regulatory agency.
In April this year, when the Senate confirmed Gary Gensler as the Chairman of the Securities and Exchange Commission, most people from the U.S. crypto-community seemed to be quite relieved. It’s a well-established fact that investors from the States have been plagued by clouds of regulatory uncertainty for long periods now.
After exhibiting a keen interest in the crypto-space, referring to blockchain technology as a “catalyst for change” and teaching about the same at MIT, Gensler was expected to deliver as soon as he was handed over the baton. However, the SEC chief has predominantly remained ambivalent. Less than a month back, for instance, he ended up equating stablecoins to poker chips.
Even though his broader perception mostly seems to be anti-crypto, his crafty persona and schematic plans, in conjunction, have managed to fill in the otherwise regulatory void.
In fact, Gensler recently ruled out the probability of the U.S. implementing a crackdown on crypto, similar to that of China. Effectively, the space has been provided with a certain degree of decisiveness. At the end of the day, some certainty is better than uncertainty, right?
Too much on the chief’s plate
By and large, the SEC has been given the responsibility of overseeing the corporate sector, capital market participants, securities, and investment markets. The comparatively novel crypto-space, in retrospect, is just an infinitesimal part of the agency’s broader regulatory ambit.
Being the head of the SEC, Gensler is obviously expected to bifurcate his attention. So now, as far as Wall Street is concerned, the chief has quite ambitious plans. In fact, the SEC has been laying out one of the most solid agendas in its history.
However, the 49-odd proposals lying on the table have already invited opposition from public companies, exchanges, and brokers, among others. Even so, Gensler continues to remain undeterred. In fact, he has started laying out renewed regulatory plans for other financial sub-sectors as well.
What’s more, the Chief recently went on to assert that he is confident that the SEC could move ahead on “many issues” at once. After emphasizing that everything is at the “top” of the list, Gensler underlined that he had no priorities as such. He said,
“Don’t ask me about my three daughters and which one I spend more time with.”
No favoritism indeed
To a fair extent, the Chief has honored his word. Leaving aside the Wall Street developments, a major crypto-related stride was made of late.
People in the States had been waiting for a Bitcoin ETF to be approved for ages. Quite surprisingly, the SEC gave a green flag to Volt Equity’s Crypto-Stock ETF less than a fortnight back. Even though this was not exactly what the crypto-industry had been waiting for, the approval was well-received with pomp and excitement.
After Gensler’s recent comments on how he isn’t opposed to the idea of a Futures-based Bitcoin ETF like that of Valkyrie or BlockFi, analysts now believe that actual BTC ETFs would also get a nod sooner rather than later.
That, of course, is great news. So, what next? Would the SEC and Gensler continue dedicating more time to the crypto-space?
Likely, yes. Consider this – In one of his recent testimonies, the Chief listed out five areas the SEC intends to work on:
Reading between the lines, it can be claimed that the SEC, under Gensler, aspires to legitimize the crypto-ecosystem by lending it further credibility.
Strictly sticking to recent developments and Gensler’s assertions, one can infer that the crypto-space wil end up becoming even more streamlined in the future. The progress, however, needs to be taken with a pinch of salt because people in power, more often than not, end up changing their stance by sugarcoating it with sheer diplomacy.
Gensler’s ‘DADDY’ issues
Well, people usually take a dig at bureaucrats for their ‘bossy’ and ‘commanding’ nature. Quite recently, Senator John Kennedy questioned Gensler about why he acts like a “daddy” of the people and companies he regulates as Chairman.
Reverting back to the same, Gensler highlighted that he is merely trying to take the oath of office seriously and intends to “promote investor protection” and “facilitate capital formation.”
Classic Gensler response!
His sober explanation to the question above is an authentication of the non-impulsive approach he employs. Throughout the Q&A session, in fact, Gensler did exhibit ‘fatherly’ traits by correcting the Senator’s misconceptions and gleefully acknowledging the concords.
His ability to debunk fallacies and parallelly recognize the actual essence of the same aspect would come in handy in the final stages of crypto-regulatory drafting. He’d be THE perfect devil’s advocate.
A lot has happened in the financial space this year. One key area that is yet to be under Gensler’s focus is the equity market’s ‘meme-stock’ subset.
The unbelievably high trading numbers have put firms like Robinhood and Citadel Securities at risk. Congruently, the hype-driven surges of AMC Entertainment and GameStop have also amassed political attention. If the proposed regulations lying on the table end up being excessively intense, it’d only result in bizarre consequences for both the firms and their investors. In effect, the future prospects would be massively dented.
With meme-stocks already under the radar, it perhaps shouldn’t be a surprise if the meme-coin category from the crypto-space gets targeted next. Owing to Musk’s SNL appearance, DOGE made headlines earlier this year while SHIB’s recent price movements offer another testament to the typical ‘pump and dump’ nature of such coins.
Thus, to foster its investor protection agenda, the SEC might as well target DOGE, SHIB, and other coins in the same meme boat. The ripple effects would obviously be unfathomable – HODLers would get ‘rekt,’ a lot of capital will be drained out, and the space will end up losing a fair share of its credibility.
However, there’s a silver lining to this too.
Talks are going on that Gensler might end up delegating a part of the regulatory responsibility to other financial bodies. Decentralized cryptos have a high chance of being overlooked by the CFTC while banks could be thrust with the responsibility of stablecoins. In effect, the SEC might solely end up assuming the responsibility for other tokens that share characteristics similar to that of investment contracts.
If such a bifurcation indeed happens, where would meme-coins fit? While some argue that the value of dog-themed coins is sort of pegged to Musk’s tweets (DOGE and FLOKI, for instance), their values seldom remain stable. Ergo, the stablecoin category is ruled out for now.
Also, it’d be a joke if they’re equated to investment contracts and would be an insult to other decentralized projects if they’re brought under the same umbrella.
We’re eventually left with no option… Looks like Gary would have to set up the Meme-coin Board of America [MBA] to solely cater to the meme-coin subset!
Banter aside, if meme-coins manage to find a safe haven within the regulatory cracks, then, well and good. Nevertheless, if they fail to do so, the joke will be on thembecause illegitimate projects will be swept out of the space. In retrospect, the same would be a blessing to amateur investors who blindly pour capital into their so-called favorite meme projects.
Nothing less than a nightmare though
Ripple is already fighting a legal battle against the agency and Uniswap has also been targeted. Even though there hasn’t been any outright official proclamation of meme-coins being the next casualty, market participants need to remain wary.
According to a recent Bloomberg report, executives who’ve met with the SEC officials have been “privately cautioned” that the broader financial market structure rules being developed may be “extreme.” On any day, such oblique warnings coming from ‘inside’ the agency shouldn’t be taken for granted.
Now, one might argue that the executives are talking only about traditional market regulations. Oh, you wish!
Signing off by dropping the truth-bomb:
The Biden administration is only beginning to ramp up regulatory scrutiny around cryptocurrencies, according to a senior White House official.— *Walter Bloomberg (@DeItaone) October 12, 2021
Dogecoin price looks for a reversal and massive drive higher.
Inverse head-and-shoulders pattern at the bottom of a swing often triggers explosive movement higher.
Point and Figure charts clear up a lot of the consolidation and noise associated with candlestick charts, providing more clear price action structure.
Dogecoin price is ready for a strong rebound as pent-up demand and a return of bulls come into the market. However, a powerful reversal pattern is present and could trigger one of the most explosive moves higher that Dogecoin has seen in the past six months.
Dogecoin inverse head-and-shoulder setup could generate a 100% gain
Dogecoin price has one of the most sought-after bullish reversal patterns in technical analysis: the inverse head-and-shoulder pattern. The strength of this pattern is exacerbated by the location of its development: the bottom of swing low. As a result, bulls will need to push Dogecoin to a close above the neckline at $0.27, but from there, sustained price action is likely to continue.
Utilizing the Fibonacci expansion tool projects a target zone of $0.43. The horizontal profit method in Point and Figure analysis points to $0.42 and compliments the Fibonacci expansion zone. Thus, there is little resistance to stop Dogecoin price from gaining nearly 100% on the next breakout. Some profit-taking may occur at the 161.8% Fibonacci expansion at $0.35, but the pent-up demand and momentum accompanying Dogecoin may make $0.35 a moot price level.
DOGE/USDT $0.005/3-box reversal Point and Figure Chart
This bullish outlook can be invalid by breaching below the head of the inverse head-and-shoulder pattern at $0.195. A break below that level will likely generate strong selling that could target a high volume node at the $0.13 value area. Below that, it’s a quick trip to $0.08.