Bitcoin bull Mike Novogratz compared Dogecoin to GameStop - and warned buyers could 'lose lots of money'
Dogecoinbuyers should be ready to stomach heavy losses, Mike Novogratzsaid.
- Real money is at risk in the joke cryptocurrency, the
Galaxy DigitalCEO said.
- Novogratz also criticized
TeslaCEO Elon Muskfor touting Dogecoin and driving up its price.
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"Dogecoin reminds me a lot of
The digital coin's market capitalization hit $10 billion earlier this week, surpassing the market caps of Shake Shack, Under Armour, and Dropbox.
Read more: A Ruffer portfolio manager invested a portion of his $4.8 billion fund in Bitcoin. Here's what swayed him to bet on crypto - and the 2 other ways he's hedging against worrying speculative bubbles
The crypto chief also bemoaned Tesla CEO Elon Musk's trumpeting of the meme-inspired coin, which has helped to boost its price by as much as 1,000% in the past two weeks. Musk hailed Dogecoin as "the people's crypto" and said he bought some for his youngest son so he could be a "toddler hodler."
"I wish he wouldn't," Novogratz said. "Doge is a little bit like the 420 comment," he added, referring to one of Musk's most notorious tweets.
The Tesla boss tweeted in 2018 that he had "funding secured" to take Tesla private at $420 a share. Regulators charged Musk with securities fraud, and the executive agreed to pay a $20 million fine and step down as Tesla's chairman to settle the matter.
Novogratz recently criticized high-profile investors for "encouraging the masses" to buy GameStop shares when they had already skyrocketed to $400. "It was almost a certainty they'd lose all their money at that point," he said.
The crypto boss has also drawn a line between Dogecoin and other cryptocurrencies in recent days. While he thinks Bitcoin could double in price by the end of this year as major institutions follow Tesla in buying it, he sees "no long-term value in Dogecoin."
Here's a chart showing Dogecoin's astronomical rise this year:
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