Will the Dogecoin bubble burst? Crypto pioneer Barry Silbert seems to think so.
Silbert has taken a short position on the current Silicon Valley darling with FTX trade. Typically, an investor takes a short position when there is anticipation that the value of a stock will decrease in the short term.
Silbert is not the only one predicting the bubble will burst as Dogecoin prices soar. Some 74 percent of professional money managers said they see crypto assets as being in a bubble right now, InvestorPlace reported. Bitcoin could face a long winter after a massive correction with the currency dropping by 80 percent or more, according to crypto exchange BTCC founder Bobby Lee.
Silbert, a power player in the digital-asset sector and the founder and CEO of Digital Currency Group (DCG), said he’s betting against Dogecoin and is urging investors to convert their Doge holdings into bitcoin, Market Watch reported. In addition to DCG, Silbert founded crypto asset manager Grayscale Investments and illiquid assets marketplace SecondMarket.
On May 8, Silbert tweeted, “Okay $DOGE peeps, it’s been fun. Welcome to crypto! But the time has come for you to convert your DOGE to BTC [disclosure: we’ve gone short DOGE…”
Silbert’s tweet sparked a frenzied trading hour, with 5-to-10-percent swings happening within minutes, mostly bearish, Crypto Potato reported.
Seems Silbert was correct.
Listen to GHOGH with Jamarlin Martin | Episode 74: Jamarlin Martin Jamarlin returns for a new season of the GHOGH podcast to discuss Bitcoin, bubbles, and Biden. He talks about the risk factors for Bitcoin as an investment asset including origin risk, speculative market structure, regulatory, and environment. Are broader financial markets in a massive speculative bubble?
In the skit, Musk’s mother, model Maye Musk, joins him onstage to ask her son what he got her for Mother’s Day.
“I’m excited for my Mother’s Day gift,” Maye Musk said. “I just hope it’s not Dogecoin!”
“It is,” Musk replied. “It sure is.”
In another skit, Musk played a character on SNL’s Weekend Update segment who tried to explain what Dogecoin was. He called it just “a hustle.”
Following Musk’s SNL appearance, investors sold off Dogecoin sharply. It was down 40 percent, trading as low as 44 cents early on May 9, CNN Business reported.