Altcoins like safemoon and dogecoin aren’t going to the moon and you could lose all your money, analysts say

SourceBusiness Insider
SectorTechnology
CountryMiddle east

Investors should be very wary of alternative cryptocurrencies such as safemoon and dogecoin, many of which are unregulated, highly volatile and could cause buyers to lose all their money, analysts have said.

The breakneck rally in various altcoins has drawn in an army of retail investors, who are hunting for the next bitcoin. Dogecoin had rallied 470% in the month to Friday. Safemoon, a token launched in March, had risen 1,320%, boosted by celebrities such as Jake Paul and Lil Yachty.

“Gains are being fueled by frenzied chat across social media with influencers jostling for position to push their favoured coins,” said Susannah Streeter, market analyst at investment company Hargreaves Lansdown.

“But like a slot machine, the coins being pushed into circulation are very much a speculative bet and investors should only dabble if they have money they can afford to lose.”

Both dogecoin and safemoon have cooled since touching all-time highs earlier in April, with trading volumes down sharply.

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