Call it the “dogefather” versus the godfather of crypto.
Barry Silbert, a power player in the digital-asset sector, said he’s betting against dogecoin DOGEUSD, -8.92% and is urging investors in one of the hottest trades in 2021 to convert their doge holdings into bitcoin BTCUSD, -0.72%.
The missive from Silbert comes as the chief executive of Tesla Inc. TSLA, +1.33% and SpaceX and one of dogecoin’s most vocal champions, Elon Musk, is set to guest host NBC’s late night comedy sketch show “Saturday Night Live.”
Fans of dogecoin are hopeful that the Tesla CEO may offer a bullish word or two on the doge, which was created in 2013 as a lighthearted riff on bitcoin, but has now taken on different significance amid a nearly 14,000% surge in value in 2021.
At last check Saturday evening, dogecoin was changing hands at 63.9 cents on CoinDesk, off about 14% from its 24-hour peak at 74.08 cents.
Some view the asset as the perfect example of an asset bubble.
Musk, however, on April 28 declared himself the dogefather, ahead of the ‘SNL’ spot.
Dogecoin’s moves have been primarily pegged to Musk’s comments in social media, in recent weeks and months.
Silbert is considered a luminary in the world of digital assets, after founding two of the most widely known enterprises in crypto: Grayscale Investments, which runs the popular Grayscale Bitcoin Trust GBTC, +3.71% ; and the Digital Currency Group, which also owns CoinDesk. He’s also been an early investor in companies like trading platform Coinbase Global COIN, +2.70% and Ripple, a blockchain-focused startup behind the cryptocurrency XRP XRPUSD, +1.58%. CoinTelegraph ranks Silbert as the No. 5 most important person in decentralized digital assets.
Silbert’s tweet effectively creates a face-off between billionaire investors.
Musk boasts a networth of $166 billion, while the DCG founder’s networth is $1.6 billion, according to Forbes.
Doge devotees have very publicly set a target of $1 for the coin in 2021, a number that might seem extremely modest at first glance but not when viewed through the lens that Doge traded at $0.005 on the final day of 2020.
Even more bullish dogecoin holders, view their price targets at $5 and beyond.
Interest in dogecoin can’t really be overstated. In Google trends over the past week, it has eclipsed searches for COVID and coronavirus and Elon Musk’s appearance on “Saturday Night Live” is trending on Twitter.
So far, the meme currency has enjoyed a spectacular ride compared against most other assets. Gold futures GC00, +0.04% are down 3% so far this year, the Dow Jones Industrial Average DJIA, +0.66% and the S&P 500 index SPX, +0.74% are up by nearly 13% in 2021, while the Nasdaq Composite Index COMP, +0.88% has gained about over 6% so far this year.
However, even Musk offered a note of warning on Friday, suggesting that investors buy cautiously.