For the elite, it is a “scam”; but for the people, it is a carnival.
Original title: “[Comment] Can Dogecoin copy the story of Game Station’s revenge on Wall Street? 》
Written by: Si Linwei Source: Jiemian News
The battle without gunpowder on Wall Street in the United States in early 2021 is impressive. A large number of retail investors and well-known short-selling institutions such as the Citron Fund are fighting around the game station and other targets. In the end, the Citron Fund lost billions of dollars and announced that it would never go short, and the share price of Game Station also soared. The retail investors who have tasted the sweetness are now turning their attention to Dogecoin.
Why is Dogecoin skyrocketing? Has Bitcoin and Ethereum become a game of big capital? Can Dogecoin repeat the story of the game station?
On May 8th, Barry Hilbert, the owner of Grayscale Capital, the world’s largest Bitcoin institution holder, announced on social media that he had shorted Dogecoin and hoped that everyone would return to Bitcoin.
According to public data, Grayscale Capital holds 653,300 Bitcoins, worth 38.014 billion U.S. dollars. Barry Hilbert is the founder and CEO of Grayscale’s parent company, Digital Currency Group, and a rich man on Wall Street.
On May 9th, Tesla CEO Elon Musk said while participating in the American variety show “Saturday Night Live” that Dogecoin is the future of currency, which is an unstoppable financial tool that will take over the world. The appearance of Dogecoin is “there is also a way to steal” (the original text here is “It is hustle”, but it cannot be directly understood as a “scam” here. “hustle” also has the meaning of the spirit of thief in Western culture, refer to the British drama “Hustle”).
Why did Barry Hilbert declare to be a favorite of short retail investors like the Citron Fund? The background is at the beginning of 2021. Under the strong appeal of Musk, the spiritual leader who is willing to call himself “Dogecoin CEO”, the price of Dogecoin has skyrocketed by more than 140 times in less than half a year. Investors are mostly retail investors in the United States, rather than large financial institutions, so Musk calls it “the currency of the people.”
Dogecoin is a popular carnival under the leadership of Musk and a rebellion against the traditional American elite. This is a completely different investment philosophy, with the most direct dream of getting rich and the spiritual slogan of grounding, and its investment rate of return. It also directly got rid of the traditional institutions of heavy storage of Bitcoin and Ethereum.
Such a funny air currency has no actual value or innovation, but its market value has exceeded 100 billion U.S. dollars at its peak. In contrast, the recent negative premiums of Bitcoin trust products under Grayscale Capital have been showing for a long time, which reflects that investors’ willingness to buy is getting lower. This naturally makes Wall Street elites like Barry Hilbert unable to accept the Dogecoin skyrocket.
Why is Dogecoin soaring like crazy? In addition to the Musk platform, we can focus on these two perspectives:
First of all, multiple trends indicate that the two cryptocurrencies, Bitcoin and Ethereum, are farther away from ordinary investors. As of May 10, the price of Bitcoin remained at around $60,000, and Ethereum is about to break the $4,000 mark. In terms of price, the income of many Americans can no longer afford the price of buying a bitcoin.
Judging from the data on the chain, according to the research of the data research website Glassnode, as of January 2021, exchanges hold 2.36 million bitcoins, accounting for 12.7%. Funds, custodians, OTC counters and other institutional entities hold bitcoins. The currency accounted for 31.7%. Given that the total number of bitcoins is only 21 million, and the recent large-amount bitcoin addresses are all traditional large funds, it can be foreseen that the concentration of large bitcoin addresses will further increase.
In other words, this round of price increases of Ethereum and Bitcoin were all driven by the incremental capital entry of traditional institutions. Most of the currencies flowing in the market were slowly being acquired by large institutions, which in turn was expensive. Prices have been beyond the reach of retail investors. The gap between the rich and the poor represented by Wall Street in the United States will reappear in the cryptocurrency field.
Therefore, Dogecoin is a reproduction of the American people’s anti-Wall Street elite culture. Since the 2008 subprime mortgage crisis, the structural problems exposed by the US economy have not been resolved. Even during the epidemic, the wealth of Wall Street elites has grown tremendously, and the American people still need the government to issue checks to make ends meet.
At the beginning of the year, the original intention of retail investors who raised the share price of Game Station was very simple. It was to protect childhood memories and make Wall Street lose money. From the perspective of the final result, the disarmed surrender of the Citron Fund did achieve the direct purpose of retail investors. In fact, the deep-seated demands have not been refined, nor have they been paid attention to by the elites represented by Wall Street.
Even the SEC, which acts as an arbitrator, announced that it would investigate whether there is suspicion of market manipulation in the “Wall Street Gamblers” (WallStreetBets) section of Post Bar in the United States, and the “Bill Hwang” incident that just liquidated its position indicated that institutional investors would also Abuse of tools, but institutional investors and retail investors are treated differently.
The wealth dream of the American people and the anti-Wall Street narrative require a new investment target. The geek culture of the cryptocurrency itself and the ironic spirit of Dogecoin perfectly fit this point. Therefore, Musk called it “there is also a way to steal.” For the elite, it is a scam, but for the American people, it is a carnival of common people.
There is no essential difference between Dogecoin and Game Station as investment targets, but note that its skyrocketing is not because retail investors want to simply attack Wall Street, but because the public’s wealth dreams in the bull market boom combined with the anti-authoritative spirit in American culture. A huge bubble, and the speech of Gray Capital’s boss Barry is tantamount to taking the initiative to burst this bubble and standing on the opposite side of retail investors, which allows the two forces to collide again in the field of cryptocurrency. This time who loses and who wins, which side are you on?
Since Barry Hilbert announced the short, on May 9, according to CoinMarketCap data, the 24-hour Dogecoin fell by as much as 40%, and it is currently narrowing to around 25%. However, on May 10, the price of the altcoin “SHIB” (Shib) that imitated Dogecoin tripled in a single day, and it appeared on Weibo hot searches, and the topic of discussion even surpassed Dogecoin.
Source link: www.jiemian.com
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