Dogecoin (DOGE-USD) remains, in my mind at least, a waste of time. Actually, more to the point, it’s a waste of money. Nothing puts that into starker perspective than the tale of the Dogecoin Millionaire.
Even though he has become successful due to Dogecoin, that doesn’t mean you should go out and invest in it. He is an interesting story within the greater story of Dogecoin, though.
I’d like to talk about him because I think his story could lead investors to throw money into Dogecoin needlessly.
The Dogecoin Millionaire is the moniker chosen by Glauber Contessoto. He has a super interesting story of risk and crypto. Ultimately, though, I think there’s a greater lesson about what might have happened and how that relates to ordinary people who invest in Dogecoin.
You see, Glauber Contessoto isn’t any ordinary DOGE investor. He’s definitely not risk averse, that much is sure: In fact, he put everything he had into DOGE. 69 days later, on April 16, he tweeted a screenshot of his investment account. It showed that he had surpassed the $1 million threshold.
That isn’t particularly noteworthy. People surpass $1 million in their investment accounts all the time. What was noteworthy was Contessoto’s claim that he might have become the first Dogecoin Millionaire of 2021. The Dogecoin Millionaire was born.
Although I don’t recommend following in the Dogecoin Millionaire’s footsteps, I do admire his conviction. He put all $180,000 of his life’s savings into DOGE. That tweet showing his investment reaching $1 million started something powerful.
He quickly established a large social media following. He has repeatedly stated that he won’t move away from Dogecoin no matter what happens. And, true to his word, he hasn’t. A recent video on his Dogecoin Millionaire YouTube channel proves as much. He is still 100% invested in Dogecoin. The value of his Dogecoin is now a bit under $600k.
Again, his conviction is admirable. But I think it’s also a bit dangerous. Here’s why.
The point I want to make is that the Dogecoin Millionaire managed to create something bigger from his bet. His success and fortune isn’t only a product of price fluctuations in DOGE. He has a lot going for himself now because of everything he built. His social media presence has opened the doors to multiple opportunities. The revenues he makes from those opportunities isn’t affected by the movement of Dogecoin’s prices.
He has every reason to continue to do what he is doing. In that video I linked above Contessoto claims that he still believes DOGE will replace the dollar. That’s a very bullish assertion to be sure. I don’t think many viewers could realistically believe that. Nevertheless, it is dangerous.
Realistically, there’s only a tiny fraction of a tiny fraction of people who might actually believe DOGE will usurp the dollar. But when Contessoto says that, it could trigger someone to invest more money in Dogecoin than they could tolerate losing.
That’s what I think is dangerous: The Dogecoin Millionaire has already been vaulted into a better place than he was prior because of DOGE. His opportunity is less about Dogecoin’s price than the fame he has created for himself. I’m happy for the guy, I’m just not sure he’s helping.
What to Do
I’m not a fan of DOGE. But that’s not the point here. The point is that DOGE continues its downward slide and influencers continue to do their piece in pulling capital into that slide.
The Dogecoin Millionaire’s unflappable optimism causes some kid to invest everything he’s saved in Dogecoin only to watch its value drop continuously. That’s an argument that applies to r/wallstreetbets broadly and reflects in the Dogecoin Millionaires of the world.
As we’ve seen over the past eight months, DOGE is losing steam.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.