Bitcoin bull Mike Novogratzâ€™s company, Galaxy Digital, has analyzed dogecoin and concluded that â€œdespite its deficiencies, dogecoin has remarkably strong fundamentals and powerful forces supporting its rise.â€ Novogratz admitted that he had been too bearish on the cryptocurrency.
Dogecoin Should Not Be Ignored, Says Galaxy Digital
Galaxy Digital Research published a report on Tuesday entitled â€œDogecoin: The Most Honest Sh*tcoin.â€ The report outlines the history and progress of Dogecoin, noting that its appeal â€œhas always been its honesty.â€ The authors described that â€œUnlike many other cryptocurrency projects, Dogecoin does not seek, or even pretend, to be anything more than to be the worldâ€™s most fun currency.â€
The report also adds that â€œwith no pre-mine or ICO, Dogecoinâ€™s fair launch positions it more closely to Bitcoin than most other projects in the space, ensuring that no hidden group of insiders stands to benefit disproportionately from its rise.â€
While acknowledging that dogecoin â€œis the best performing major digital asset year to dateâ€ and â€œmore people than ever before own DOGE,â€ the report highlights some major deficiencies of the meme cryptocurrency. â€œDogecoin has zero development,â€ the authors began. â€œFew people run full nodes and those who do often have difficulty downloading the chain or staying synced with the network. Thereâ€™s no market infrastructure, barely any wallet software, and despite being more than 7 years old, many exchanges still donâ€™t support it. There is no serious long-term narrative or use-case supporting its wide adoption. And itâ€™s not clear whether DOGE holders are dogmatic about the coinâ€™s long-term prospects.â€
Admitting that when they set out to write the report, they expected to find that â€œDogecoin is a joke â€¦ not credible, resilient, or adopted,â€ the authors wrote:
Nonetheless, they emphasized, â€œWe donâ€™t expect Dogecoin to become the worldâ€™s most valuable cryptocurrency any time soon, but DOGE should not be ignored.â€
Among those who have significantly contributed to the rise in the price and adoption of the meme coin are Tesla CEO Elon Musk and the owner of the NBAâ€™s Dallas Mavericks, Mark Cuban.
The report, which can be found here, concludes:
Galaxy Digital CEO Mike Novogratz called the report â€œvery balanced,â€ adding: â€œI had been too bearish. Glad Iâ€™m not short.â€
What do you think about Galaxy Digitalâ€™s analysis of dogecoin? Let us know in the comments section below.
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