Yes it finally happened – Nexo has listed DOGECOIN. And it sadly happened to my most trusted lending platforms – Nexo. You guys should know by now that I am someone who dislikes meme coins and all these tokens that will probably get investors and traders into trouble. But yet, it seems that even my trusted lending platform is falling for the trap. I tell you, DOGECOIN and whatever nonsense token out there will be the ruin of the cryptocurrencies. These coins and token will bring the wrath of those government regulators hard down and this will almost certainly let to the centralization of a lot of cryptocurrencies. Or even mistrust of the technology behind cryptocurrencies. And what will happen to the rest us? All of us will pay dearly for this folly.
Just imagine the losses for retail traders who went in during the crypto boom just last month. The highest DOGECOIN went was 0.74USD somewhere in early May. It is now trading (after a the recent pump) at 0.19 USD. It had went down to 0.15 USD at one point. I even know a few investors that had threw in a significant amount of money into DOGE because some car celebrity was spending all his time trying to promote it to the moon. It didn’t happen. And following the crash, DOGECOIN was one of the biggest loser. And those whales manipulating the market are the biggest winner. Remember unlike Bitcoin which has at least a limited supply (21 million) and hence value in the long term, DOGECOIN do not have a limited supply. And if you have something with an endless supply, do you think that it will have a value, especially in the long term? Almost certainly not right? And yet, the price of DOGECOIN went up 26,000% at one point. There is simply no fundamentals behind the coin. Just full of hype and nothing more. And the saddest thing is that Nexo is listing them. Yes there are definitely some diehard fans of DOGE out there. But bowing to such people and listing such a meme coin is not something which I would consider a sound business decision. Furthermore there are plenty of coins and tokens out there with even better technology and use cases. And of these hundreds of coins and tokens, Nexo chose DOGE? Very very strange decision in my opinion. Especially when we are talking about a business tasked with keeping my funds safe and making money out of them.
So yes, I might be moving my crypto out of Nexo soon. This listing of DOGE has actually woken me up to the fact that just because a platform gives high interest returns might not always make good business decisions. But as you guys know, I am often the “wait and see” kind of investor. I will be watching Nexo’s upcoming moves and also plan for the worse. There are a number of other good lending platforms out there as well.
Oh by the way, Blockfolio has been renamed to FTX. But seems that Blockfolio is actually owned by FTX anyway. I thought this would be interesting to note.