Bitcoin bull Mike Novogratz’s company, Galaxy Digital, has analyzed dogecoin and concluded that “despite its deficiencies, dogecoin has remarkably strong fundamentals and powerful forces supporting its rise.” 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 “Dogecoin: The Most Honest Sh*tcoin.” The report outlines the history and progress of Dogecoin, noting that its appeal “has always been its honesty.” The authors described that “Unlike many other cryptocurrency projects, Dogecoin does not seek, or even pretend, to be anything more than to be the world’s most fun currency.”
The report also adds that “with no pre-mine or ICO, Dogecoin’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.”
While acknowledging that dogecoin “is the best performing major digital asset year to date” and “more people than ever before own DOGE,” the report highlights some major deficiencies of the meme cryptocurrency. “Dogecoin has zero development,” the authors began. “Few people run full nodes and those who do often have difficulty downloading the chain or staying synced with the network. There’s no market infrastructure, barely any wallet software, and despite being more than 7 years old, many exchanges still don’t support it. There is no serious long-term narrative or use-case supporting its wide adoption. And it’s not clear whether DOGE holders are dogmatic about the coin’s long-term prospects.”
Admitting that when they set out to write the report, they expected to find that “Dogecoin is a joke … not credible, resilient, or adopted,” the authors wrote:
As we reviewed the data, we found that, despite its deficiencies, Dogecoin has remarkably strong fundamentals and powerful forces supporting its rise: a genuine origin story, longevity, and a growing community of users who appear determined to meme a Shiba Inu-themed global currency into existence.
Nonetheless, they emphasized, “We don’t expect Dogecoin to become the world’s most valuable cryptocurrency any time soon, but DOGE should not be ignored.”
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 NBA’s Dallas Mavericks, Mark Cuban.
The report, which can be found here, concludes:
The coin offers a certain honesty that resonates in a complicated world and an often duplicitous cryptocurrency ecosystem. Most assets cannot rival that honesty, and Dogecoin’s longevity is ensured so long as one truism remains: people love a good joke.
Galaxy Digital CEO Mike Novogratz called the report “very balanced,” adding: “I had been too bearish. Glad I’m not short.”