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DOGE Pump Crashed Crypto Market Again, Here's What Happened

Tue, 11/08/2022 - 15:13
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Gamza Khanzadaev
DOGE pump foreshadowed crypto market crash again
DOGE Pump Crashed Crypto Market Again, Here's What Happened
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The Dogecoin pump has once again foreshadowed a massive collapse in cryptocurrency prices. The last such anomaly was in mid-August, when the price of DOGE rose 20% in three days and then the crypto market lost 12% in capitalization, or $140 billion, in the following three days.

Source: TradingView

This time, the talk is about a 95% surge in the price of DOGE in the last week of October, spurred by the purchase of Twitter by Elon Musk, the chief ambassador of the main meme coin. The collapse, on the other hand, is today's fall of the crypto market, where more than $50 billion in total capitalization has been lost since the start of the day, with prices for some cryptocurrencies drawing double-digit percentage falls.

Dogecoin (DOGE) foreshadows FTT collapse

Interestingly, each of the collapses is not directly related to DOGE itself; the sharp rise in its price each time is just a sign. The current fall in the crypto market, for example, is primarily attributed to the situation around the FTX exchange, its affiliate Alameda Research and the exchange's native token, FTT.

Breaking: FTX Allegedly Stops Processing Withdrawals

As reported by U.Today, FTX is under enormous pressure due to suspected insolvency and the news of its competitor, Binance's, sale of 23 million FTTs worth nearly $600 million. However, FTT is the collateral for most of the loans of the exchange and its affiliates.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.