DOGE attracts blue-collar investors: Three Arrows Capital CEO
DOGE has four times the brand recognition of Ethereum in non-crypto circles says Zhu
Powered by Tesla CEO Elon Musk’s endorsement, Dogecoin has had an impressive year, growing from being valued at $0.003 last August to trading at $0.27 at time of writing. Addressing questions on the future of the meme coin’s spectacular price surge, fund management firm Three Arrows Capital CEO Su Zhu explained his bullish thesis for Doge.
Speaking on an episode of “The Game Theory of Crypto Podcast” hosted by crypto researcher Hasu, Zhu stated that Dogecoin’s ability to attract the attention of blue-collar investors with its meme coin persona will prove crucial in its growth going forward.
Historically, DOGE’s price volatility and origin have encouraged sophisticated crypto investors to stay away from the cryptocurrency. Zhu addressed this by questioning why a digital asset has to be serious to be successful.
Agreeing with Musk’s comments about Dogecoin being the ‘people’s crypto’, Zhu pointed out that Doge had four times the brand recognition of Ethereum in non-crypto circles. He added that anyone could own whole amounts of the cryptocurrency and even the “man who drinks beer can understand it”.
Furthermore, DOGE is the only currency that common investors advocate for on social media, not because they are paid to do it but because they like the coin, the CEO said, lauding the Dogecoin community’s organic promotion of the currency.
He then cited data from retail trading app Robinhood to show the extent of Dogecoin’s popularity among blue-collar investors. Robinhood recently reported that DOGE transactions accounted for 62% of its total crypto revenue in Q2 of 2021.
“The best way to understand DOGE, I think, is that if you look at Robinhood, which is sort of the most blue-collar style of crypto investing, DOGE is 60% of their crypto revenue. And crypto is 40% of Robinhood’s revenue, so Robinhood is basically a DOGE proxy,” Zhu explained, adding that “people want to trade Doge.”
Dogecoin’s upcoming upgrade has only piqued the interest surrounding the meme coin as it is expected to not only resolve scalability issues but also maximise its base layer transaction rate leading to faster and cheaper transactions.
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Harshini Nag, @KhareemSudlow