from Dogecoin to Squid game, the advent of meme coins

If the shares of companies on the verge of bankruptcy have soared this year, they are not the only ones: cryptocurrencies ranging from the joke to the most pure scam have seen their prices explode… sometimes by hundreds of percent in a few hours.

The year 2021 marked the advent of pack hunting on the same stocks, these actions popularized on online discussion platforms like Reddit. But that’s not all. From Dogecoin and Squid Game token to Shiba Inu and Floki, 2021 was also the year nihilism became a financial asset.

Dogecoin (DOGE): the anti-Bitcoin

You have probably heard of Dogecoin (DOGE), this crypto-asset created in December 2013, during the peak of popularity of the same Doge, based on a dog breed of Japanese origin shiba inu on which is added text supposed to represent what the pooch is thinking.

Presented from the start as the anti-Bitcoin, that is to say as a joke aimed at making fun of the cryptocurrencies which were then sprouting up like mushrooms, this crypto-asset assumes the fact of having no intrinsic quality. He was, according to his creator, nothing more than the first to have capitalized on the wave of interest aroused by this kind of joke.

However, its performance this year exceeded 15,700% in a few months, starting from 0.47 cents (or $0.0047) on 1er January to reach 74 cents at its peak on May 8. For comparison, the total performance of the S&P 500 (including dividends) since the 1er January 1991 reached only about 1,300%, only.

DOGE price in dollars from its creation, in 2013, to December 17, 2021

On May 8, 2021, at its peak, the capitalization of Dogecoin had passed the $90 billion mark. This allowed the darling of influencers and social networks, created by the American programmer Billy Markus, to join the 3e place in the ranking of cryptocurrencies in terms of capitalization, placing itself behind Bitcoin and Ethereum, and generating a new wave of same.

Looking at it from a stock perspective, then the crypto doggie’s capitalization was higher than that of 408 companies listed on the S&P 500, as well as the combined capitalization of Newmont Mining (the largest mining company gold mining in the world) and Barrick Gold.

The veterans of the Stock Exchange will perhaps say that it looks like 1999. In reality, we are far beyond:

April 21, 2021: “Dogecoin isn’t the first worthless financial instrument I’ve seen soar – it also happened to dot-coms early in my career – but it’s the first asset that was intentionally designed not to have no value. »

July 27, 2021: “When we look in the rear view mirror a few years from now, we’ll probably all agree that it was impossible to spot the summit. »

We are therefore dealing here with an asset devoid of intrinsic value… which has nevertheless “reached the moon”, as we say in the world of crypto-assets.

For a time anyway, since the value of Dogecoin is now only a little less than 25% of what it was at its peak.

The story does not end there, however, since other crypto-doggies have naturally taken over!

Shiba Inu (SHIB): the “dogecoin killer »

The Shiba Inu (SHIB), another altcoin bearing the image of the canine race of Japanese origin, was created in August 2020 by a programmer answering to the pseudonym of Ryoshi.

Presenting itself as the “dogecoin killer (the one that would replace Dogecoin in the hearts of fans), this new crypto same, this time decentralized, exploded in October 2021, just over a year after its creation. From a price of $0.00000721 ​​on 1er of the month, it reached its peak at $0.00008854 (you will notice the disappearance of a zero) on October 28, registering more than 1,100% performance during this rallybefore starting to descend towards the cellar.

SHIB price between its creation, in August 2020, and December 17, 2021

Obviously, as for Dogecoin, we find a certain Elon Musk at the maneuver, this absolute genius obviously having a hobby of having fun with crypto-doggies. What do you want, you have to relax when you are at the head of the greatest fortune in the world…

This time we are dealing with a dog presenting itself as the anti-dog which presents itself as the anti-Bitcoin (you follow?), each one being mounted in turn “ to the moon “, to use the consecrated expression of values ​​that explode on the rise.

The year 2021 of cryptos summed up in one picture

Floki Inu (FLOKI): a crypto-dog to make everyone agree?

To be complete, I must also mention the Floki Inu, an altcoin created in July 2021 in tribute to Elon Musk’s eponymous dog…

… the entrepreneur actually owning a shiba inu. Both the dog and the altcoin were doing like a charm until early November…before the token crashed like its predecessors.

FLOKI price between its creation, July 10, 2021, and December 17, 2021

Here too, the lucky investors who positioned themselves at the right time and had the nose to come out at the top could have made a good fortune, with a gain of 453% between the low of October 26 and the high of November 4.

Squid Game coin: when it is enough to buy at breakfast and sell at noon to become rich

I pass very quickly on the last crypto meme (or rather crypto scam, at this level) as of date, I named the Squid Game token (SQUID), created at the end of October to capitalize on the successful South Korean eponymous series.

As in this Battle Royalethere was only one survivor at the end of the story: the developer who left with the crate on the Day of the Dead, after the token recorded a six-figure performance, just days after its launch. Rising to $2,856.64 for a brief moment, the Squid Game tokens were then 178,000% higher than the price at which they had been issued… before being worth nothing five minutes later.

SQUID price evolution on 1er November 2021

The most optimistic among you, however, may note that this token then rose from the hole it was plunged into, reaching a new high on November 9 at… $0.45! Before, of course, starting to fall again since then.

What are the symptomatic excesses of the era of time, aren’t they?

1er November 2021: CNBC: “Billionaire Warren Buffett Reveals the ‘Only Easy Way’ to Increase Your Wealth by 50%. » Sven Henrich: ” Buy one shitcoin at breakfast and sell it at noon? »

Are we done with stocks and cryptos memes ?

Certainly not.

Admittedly, with retail investors now having less pocket money than was the case during the first quarter of 2021, we can expect a relaxation on these kinds of aberrations.

However, both the federal state and the Americans seem to have acquired a taste forhelicopter money. However, given the pace at which Joe Biden is putting on stimulus packages, there is no indication that individual investors will run out of fresh money.

This was confirmed by Natixis in a note dated February 12:

“Unfortunately, it is to be expected that these situations will increase. With the extremely rapid growth of the money supply, it is easy for a group of investors to coordinate to collectively buy a financial asset using the massive liquidity available, and violently drive up its price; then these investors resell this asset and its price relapses. »

Bruno Bertez added on July 29 that:

“Retail investors have developed a unique investment strategy, based on a growing online community and new investment tools to invest in smaller, less popular stocks, and to further challenge investors institutional. This is why we believe that stocks memes are made to last. »

The decor thus set, we will now have to give meaning to what we have just seen in the first three episodes of this soap opera: indeed, how to interpret the great landing of individual investors on the stock market front?

We will have the opportunity to talk about it in my next post.

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