Dogecoin's 9% Drop & Surge: The Impact of Mascot Death Hoax on Crypto Enthusiasts

• Dogecoin Experiences Volatility After False Social Media Rumor
• Details of the Incident
• Market Reactions to the False News
• Impact on DOGE Traders
• Dogecoin's Journey and Market Impact
• Recent Bitcoin Price Spike

Dogecoin Experiences Volatility After False Social Media Rumor

Dogecoin$0.091 -0.42%, a popular meme cryptocurrency, witnessed a 9% jump following a social media rumor that was eventually retracted. The rumor, which insinuated the demise of the token's mascot, stirred a frenzy in the crypto market as liquidations increased due to the false news.

Details of the Incident

The price of Dogecoin (DOGE) saw a significant swing on Tuesday due to a rumor, later discovered to be fake, concerning the death of the cryptocurrency's beloved mascot. Triggered by this rumor, the DOGE price shot up as much as 9% to 8.3 cents.

A pseudonymous user, TraderAguila, had posted a screenshot of a Telegram discussion in Japanese, implying that Kabuso, the token dog for the cryptocurrency, had passed away. However, the post was quickly deleted, and the user's account was set to private as they admitted the screenshot was inauthentic. The account was later deleted completely.

Market Reactions to the False News

Following the incident, DOGE recouped most of its gains and settled around 8 cents, still slightly higher than the 7.7 cents it was trading at prior to the fake news. This occurrence agitated the crypto community, fueling the existing perception of market manipulation and speculative nature associated with the asset class.

Cryptocurrency market analyst, Tree of Alpha, expressed concern over this event stating, The charts people are painting while speculating over the death of an animal make me think we're either all going to hell or we're already there.

Impact on DOGE Traders

The volatility incited by this rumor was a source of distress for DOGE traders as several leveraged trading positions were wiped out due to the swift price swing. According to CoinGlass data, over $674,000 worth of leveraged derivatives trades were liquidated within an hour, a figure which outpaced all other crypto asset liquidations, including Bitcoin$42,260 -0.64%.

Dogecoin's Journey and Market Impact

Originally conceived as a joke cryptocurrency in 2013, Dogecoin has amassed a massive global following, including high-profile supporters such as Elon Musk. It currently has a market capitalization exceeding $11 billion.

The incident occurred at a time when the crypto market is garnering substantial attention. Particular focus is on the potential regulatory approval of a highly-anticipated spot Bitcoin exchange-traded fund (ETF) in the U.S., regarded as a milestone in the industry's development.

Recent Bitcoin Price Spike

In a separate incident, Bitcoin (BTC) experienced a brief price spike in October, following a false tweet from CoinTelegraph suggesting that BlackRock's application for a Bitcoin ETF had been approved by regulators.

Edited by Jonathan Stoker