Dogecoin price: Elon Musk’s DOGE tweets worry crypto analysts ‘Going to lose money’

Dogecoin has, consequently, been experiencing something of a heyday.

On Monday, February 8, DOGE prices spiked by 31 percent after Mr Musk plugged the token in a one-minute video shared to Twitter.

And as of Wednesday at 5.17pm GMT, the token is trading for £0.053 ($0.074044) – up by four percent on the last 24 hours, according to Coindesk data.

To make matters even more bizarre, Mr Musk tweeted today he has bought Dogecoin for his son X Æ A-Xii – pronounced “Ash” – who is only nine-months-old.

He tweeted: “Bought some Dogecoin for lil X, so he can be a toddler holder.”

Mr Musk followed the tweet with an adorable three-second clip of his son babbling.

Some crypto analysts, however, fear Dogecoin buyers might find themselves walking into a ticking time bomb.

Venture capitalist Nic Carter has spoken out against the frenzy surrounding dogecoin and labelled Mr Musk’s interest in the token as “disconcerting” and a “vehicle for speculation.”

Mr Carter appeared on CNBC’s Street Signs Europe today, where he said: “Unfortunately a lot of retail punters are going to lose money on dogecoin in the long term because there’s really not much there in terms of interesting technology.

“The only thing it can really do is be zombified and stick around and be an empty shell for people’s expectations and for their entertainment.”

Mike Novogratz, CEO of Galaxy Digital, has expressed similar concerns about Dogecoin earlier this week.

He compared the DOGE frenzy to the GameStop stock prices which were driven up by a group of retail investors on Reddit.

Mr Novogratz said: “It’s a meme. It was funny for a little bit but now it’s at a market valuation where people are going to lose lots of money in DOGE.”

The expert added DOGE has no real purpose, unlike bitcoin or ethereum, saying: “DOGE is kind of a meme, kind of a joke.”

Investing your money in any cryptocurrency comes with a number of inherent risks.

According to The Financial Conduct Authority (FCA), cryptocurrencies are an all-high risk, speculative investment.

The FCA said: “If you invest in cryptoassets, you should be prepared to lose all your money.”