Cryptocurrency is the naughty underground of the finance world.
I love it. But there’s one thing I hate: scams. Over the last few years the Dogecoin cryptocurrency saw massive gains.
One young man named Glauber Contessoto got a little too excited. He did the media circuit and shared his rags to riches cryptocurrency.
The only problem is he only got rich on paper. Now he’s no longer the Dogecoin millionaire.
*Does sad face*
Here’s the quick story and what he’s doing now. It’ll help you rethink how to invest in cryptocurrency.
How it bizarrely started
Glauber had a regular job a few years ago paying $36,000 a year.
He grew up poor and always wanted to make a bucketload of money to make his momma proud. His investing started with buying stocks such as Tesla. Then Reddit pumped up the GameStop stock and he bought some.
Whatever was a hot investment, he got on it.
He thought of himself as a new generation investor. The only difference is memes drove his decisions, not research.
The bad influence that turned him into a Dogecoin slum dog
Elon Musk (aka Papa Elon) started talking about Dogecoin on social media.
For those who don’t know, Doge is a random cryptocurrency started in 2013. One of the two founders is an Aussie. He religiously says it’s a joke.
The fact anyone bought it at all surprised the heck out of him LOL.
Doge is a meme iconically represented by the cute Shiba Inu puppy dog. Now every time I see a Shiba Inu in the street, I think of Doge — not healthy.
During 2020 and 2021, Elon helped to drive up the price of Doge by talking about it (as I always say, don’t take investment advice from Elon — he’s joking and gaslighting you).
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- Screenshots from Elon’s public social media accounts
Glauber couldn’t resist. He sank all his savings into Doge. He took loans off friends and family too. Oh, and the worst part is he maxed out his credit card to buy even more Doge. Yuck.
In the short term the internet called him a genius. They called him Slumdoge millionaire and The Dogefather. Elon, daddy Doge, kept pumping the cryptocurrency on social media.
Life was swell.
From $180,000 to $1M+
TikTok fuelled Doge’s price that went to the moon.
Reddit added more rocket fuel. The crowds loved Doge and so influencers told everyone to buy it. Glauber’s motto became this:
Scared money don’t make money.
Glauber was no broke ass anymore.
His initial $180,000 investment in Dogecoin grew to over $1M. He was the people’s investing champion. So like any rebellious millennial, he quit his dumb job like a badass.
The internet couldn’t resist the cuteness of a puppy dog meme.
What goes up must come down
Whenever I invest in anything I ask myself “what utility does this have?”
Dogecoin currently has zero utility.
You buy it because you like the cute puppy face and hope others will buy it too so the price pumps to the moon baby! In the second half of 2021 all cryptocurrency prices fell.
The central banks began raising interest rates and inflation started to become a pain in everyone’s ass.
As a result Dogecoin crashed harder than most. To date it’s down 90%.
Glauber’s Dogecoin is now worth $323K. And he still hasn’t sold any. He believes in his dog god and no one can tell him otherwise. Gotta love the conviction. Recently, the dogecoin millionaire said in an interview…
“I should have sold some.”
Damn right, mate.
His new investment strategy is to stay clear of speculative cryptocurrencies like Dogecoin and focus on the tried and tested ones, mostly, Bitcoin and Ethereum.
I’ve been saying this for a while. Ethereum in particular has enormous utility and companies such as Starbucks are building on top of it.
It does something. It has utility. And loads of developers build on Ethereum every day. At least the Dogecoin millionaire has wised up, which is what investing does to you after a while.
Once risk b*tch slaps you in the face, humility normally follows as it did for me when I lost a bunch of money.
You have to lose money to make money. Few understand.
What everybody misses about Dogecoin
You might be thinking Dogecoin is crap.
I want to take the contrarian view for a moment. Dogecoin does nothing but it does have one of the strongest communities I’ve ever seen. Dogecoin rules meme and internet culture.
That might seem silly.
Not quite. The message of crypto that many people forget is that it’s a change in business model.
Businesses right now build products and services and then look for customers using ads. In the crypto Web3 world it works in reverse. A business builds a community of loyal fans and sells them nothing.
Then once the community is validated and reaches MVC (minimum viable community), a business can be formed.
The difference is normal customers are transactional, but members of a community are relational. They care about furthering a cause and they’ve got skin in the game (typically ownership in the business via crypto).
So while Doge might seem stupid, in this new world, Dogecoin has the most important feature.
Final Thought
While Dogecoin does have a community I still dislike it.
The whole thing feels scammy. And anything Papa Elon recommends investing in is normally a bad idea (except SpaceX & Tesla are great companies).
As for the Dogecoin Millionaire, it’s nice to see he has wised up a bit and isn’t YOLOing into more memes with cute dog faces.
The big lesson here for you is don’t get caught up in the hype and what the crowds are doing. Investing is a long-term sport that should be based on sound fundamentals and loads of research.
That’s why I’ve done 10,000 hours of research on Ethereum since its inception.
One day we’ll look back on Dogecoin as the foundation of something new, the way Pets dot com was at the start of the dot com revolution. But I doubt Doge will go to the moon and become a booming business
Be careful out there people.
This article is for informational purposes only, it should not be considered financial, tax or legal advice. Consult a financial professional before making any major financial decisions.
