Sam Bankman Fried, the Chief Executive Officer of FTX, recently stated that he believes Dogecoin (DOGE) could very well be the asset of 2021.
Sam had elaborated on his stance during an interview held on The Jax Jones & Martin Warner Show, where the CEO went on to explain how certain economic conditions over the course of the last year have led to a rise in retail investors willing to invest in ‘meme’ based cryptocurrencies, of which DOGE is the most successful. This makes sense, too, as there is seemingly a new meme-based token every other week, with the more popular ones consisting of the likes of Shiba Inu (SHIB).
‘We chose DOGE’
The reason why Sam believes Dogecoin to be an asset for the years 2020 and 2021 is that this altcoin is a pure reflection of the economic climate nowadays. This means that for better or for worse, retail investors actively chose to invest in DOGE and help turn it into a global phenomenon and the ‘world’s most expensive joke’.
Sam wanted to reiterate that he is not endorsing Dogecoin, nor is he actively working against it, but rather all he is doing is recognizing its recent success and the impact that it has had on the community. Of course, Elon Musk’s support played a significant role in helping DOGE reach this point, as the Tesla CEO has shown time and again just how influential his words and actions can be, with nothing more than his tweets indirectly affecting entire markets.
Sam also believes in the power of social media and how it has managed to connect all of us in a way that has never quite been done before. Apart from Twitter, Reddit often plays host to long conversations and arguments about which token or project to support next, and it is this thriving community that helped push Dogecoin ‘to the moon’.
Retail investors are challenging institutional investors
As aforementioned, social media can be extremely powerful, as had been proven not just by Dogecoin’s success but also by this year’s GameStop incident. Many experts have therefore come to the conclusion that retail investors are now actively challenging institutional investors. What the retail investors lack in money, capital and funding, they more than makeup for in terms of numbers and participants.
Ultimately, Sam thinks that decentralization is the main cause, as DeFi grows increasingly popular with each passing day, and what transpired with Dogecoin is just another step towards establishing global decentralized finance dominance.