Dogecoin is up 400% in the past week. Here’s why one crypto exec says he still isn’t buying

Dogecoin is up 400% in the past week. Here’s why one crypto exec says he still isn’t buying

Dogecoin is up more than 400% this week, with the popular meme-based currency topping 40 cents for the first time on Friday.

Demand for the digital token “” which was inspired by the popular meme featuring a Shiba Inu dog and has been frequently praised on Twitter by Tesla CEO Elon Musk “” was so high that Robinhood was unable to fulfill purchase requests.

But popularity and reliability don't necessarily go hand in hand, and many have warned of the bubble potential of dogecoin.

"My guess is that [the rally] won't last, especially for something like dogecoin which was never meant to be a payment system or a store of value," Adam Zadikoff, COO of BRD, a popular crypto wallet that boasts more than 7 million users, tells CNBC Make It. "Yes, you can make a quick buck if you time it right, but timing the market is a terrible thing to try to do. It does not work."

Many crypto novices don't understand the difference between why the price of bitcoin has increased and why dogecoin is up. While bitcoin has economic incentives built in for miners to continue to create new bitcoin and there is a hard cap of 21 million bitcoin