It’s been difficult to hold Dogecoin (CCC:DOGE-USD) lately. First Robinhood (NASDAQ:HOOD) announced it was delaying the ability for DOGE holders to access its digital wallet. Then, Binance announced that it was temporarily suspending Dogecoin withdrawals from its exchange. The problem centers around an update to Dogecoin that prompted a glitch on the exchange.
Neither of these are fatal blows. But it does explain some of the bearish sentiment towards the pup coin recently. And that’s despite the ballyhooed SpaceX DOGE-1 Expedition.
At this point, readers who are familiar with my past opinions about Dogecoin may be firing up their keyboards to attack. But I’ve softened my opinion on DOGE and those that love it. In fact, I get you. I think. Dogecoin and other altcoins are about community. I might choose another word, fraternity. And fraternities can be fiercely loyal, even tribal, about their group.
This may be a time for you to remember. But take caution to not overstay your welcome. Because while you think you’ve pledged Phi Beta Kappa, it could turn into Delta Tau Chi.
A Different Kind of Pledge Class
If you spend any time in the forums or watching online videos, you’ll hear the word community used a lot. The biggest promoters (and likely holders) of DOGE know that price action is based on community action.
So what’s the problem with that? Nothing, I suppose, except the promise of prosperity. I’ve heard exhortations that you can become a DOGE millionaire if you believe you can (yikes!). Of course, they quickly add that you have to do the research. Oh and you have to buy and sell at the right times. And that – well, you might not actually become a millionaire. But what the heck, it’s fun!
And you know what? It can be fun. And for right now, that fun may be enough. It will have to be because Dogecoin remains a meme coin without other utility. However, due to the passion of the DOGE community, the altcoin continues to be accepted as a method of payment. AMC Entertainment (NYSE:AMC) is making plans to accept the altcoin.
As I wrote earlier this year, if you bought DOGE when it was under $0.05 this will be a fun story to tell your grandchildren even if you lose every cent.
But if you’re sitting on a serious loss, it’s time to start think about … moving on.
Nothing Lasts Forever
I was part of a fraternity. Many of my closest friends from college were my fraternity brothers. I have memories that will last a lifetime.
The thing about the fraternity is that it served a purpose in my life until it didn’t. At some point, we move on to bigger and better things. But initially, there’s a lot of appeal to just hanging on for one more semester.
The problem for some Dogecoin members is they’re sitting on a loss, but they believe that if they just hang on a little longer. If they just invest a few more hundred dollars. You know the drill.
And you know what? It could happen. There isn’t a lot that’s logical about the altcoin movement. And, for now, that may okay. There is likely to be a consolidation in the crypto space and Dogecoin may make the cut.
When to Leave the DOGE Party is Up to You
I’ve been hard on Dogecoin this past year. On several occasions, I’ve annoyed the DOGE community by suggesting that there were better investment options. At one point, I likened the utility of Dogecoin to the tokens kids get at Chuck E. Cheese.
With that said, I won’t be pledging the DOGE fraternity anytime soon. But if you’ve already offered your loyalty, then I wish you well. Just remember at some point, it’s okay to move on with your memories. Hopefully, they haven’t cost you too much money.
On the date of publication, Chris Markoch 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.
Chris Markoch is a freelance financial copywriter who has been covering the market for seven years. He has been writing for InvestorPlace since 2019.