Dogecoin is a tradable digital token representing the worth of Elon Musk’s consideration. When Elon Musk tweets about Dogecoin, its value goes up. When he goes on “Saturday Evening Stay” and makes painful jokes about Dogecoin, its worth goes up. When Elon Musk doesn’t shine the intense gentle of his consideration on Dogecoin, its worth drifts down.
This isn’t completely true — any individual traded Dogecoin even earlier than Elon Musk paid consideration to it — however it’s an affordable mannequin. It isn’t funding recommendation, although it does appear to have been a big a part of the investing approach of Alameda Analysis, which was a multibillion-dollar crypto buying and selling agency for some time. In case you are a crypto hedge fund, or a retail crypto dealer, this mannequin would recommend that you should purchase Dogecoin simply earlier than Musk tweets about it and promote it a bit after he tweets, however that’s onerous (you must know when he’ll tweet). A second-best mannequin may be to purchase Dogecoin shortly after Musk tweets about it after which promote it a bit later, and that does appear to have been Alameda’s approach.