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In reality, when the news broke, the coin lost half of its value in 48 hours. However, XRP’s four-month increase from $0.40 to $1.60 leaves many perplexed.
In an interview with Bloomberg, CEO of Galaxy Investment Partners, Mike Novogratz commented on the two popular altcoins. Novogratz stated that people should take into consideration the volatility when investing in cryptocurrencies. He reiterated that “we expect volatility”.
Drawing similarities between DOGE and the recent Gamestop (GME) stock price rise, Novogratz stated:
“It is a meme coin..it doesn’t really have a purpose.”
In addition, Novogratz reported that he “would be very concerned if one of his friends were investing in Dogecoin at these prices.”
DOGE’s market capitalisation of $38 billion helps to distinguish it from the majority of altcoins. DOGE trade volume is influenced by the top DOGE markets on Binance, Huobi Global, and Kraken. As altcoins like LINK, DOT, LTC, and ETH and their technological enhancements have a basis for their price increases, DOGE’s detractors are unavoidable.
In comparison, DOGE’s price increase is not backed by technological or fundamental research. DOGE HODLers have owned the altcoin for less than a month, and although HODLing for a short period of time, almost all are lucrative.
Novogratz also addressed the latest price increase in XRP. He characterised the latest price spike from $0.40 to $1.60 in a month as a “retail frenzy,” adding that “it doesn’t make a lot of sense to me” as he described the sell-off of big cryptocurrencies including ETH and BTC through altcoins.
Novogratz took to Twitter just a few hours ago to comment on the alt protest. He traced the growth of specific altcoins to Coinbase’s announcement of direct listing. He said, ”
With hindsight it was inevitable😂😂. Markets got too excited around $Coin direct listing. Basis blowing out, coins like $BSV, $XRP and $DOGE pumping. All were signs that the market got too one way. We will be fine in the medium term as institutions coming to the space.
— Mike Novogratz (@novogratz) April 18, 2021