Mascot death rumor causes Dogecoin to fluctuate 9%

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Dogecoin (DOGE) exploded on Tuesday after social media rumors about the death of the popular meme coin’s mascot turned out to be false, angering cryptocurrency watchers.

After the user used a pseudonym, the price of DOGE increased by 9% to 8.3 cents.

DOGE price chart. Source: TradingView

Soon after, the author deleted X’s post and made it private, explain The screenshot turned out to be fake. They later deleted the account entirely.

The original post caused a spike in DOGE prices and was subsequently deleted by the author. Source:X

DOGE gave up most of its gains, falling to around 8 cents, but is still up from 7.7 cents before the fake news broke.

The incident angered cryptocurrency observers as it added to the asset class’s poor reputation for market manipulation and speculative nature.

“The graphs people are drawing when speculating about animal deaths make me think we’re either going to hell or we’re already there,” the electricity market observer said. explain.

Periods of volatility also cause some traders to DOGE uncomfortable Because it eliminates leveraged trading positions. CoinGlass data shows that more than $674,000 worth of leveraged derivatives trades were liquidated in one hour, surpassing the liquidations of all other crypto assets, including Bitcoin.

Liquidate Dogecoin within an hour. Source: CoinGlass

Dogecoin started as a cryptocurrency joke in 2013, but attracted a large number of followers around the world, including Elon Musk, and now has a market capitalization of more than $11 billion.

The events come at a time when the cryptocurrency market is receiving a disproportionate amount of attention, with U.S. regulators approving a highly sought-after Bitcoin spot ETF, seen as a turning point in the industry’s maturation.