What is Dogecoin?

Dogecoin was started as a joke, but many people have taken it seriously. Dogecoin is now not only a real cryptocurrency, but it rates as fifth in market value. In the world of cryptocurrency, dogecoin price is often subject to wild fluctuation, which makes it risky to trade and hold. Experts also point to Dogecoin fraud as a reason to think dogecoin is a scam or a pyramid scheme. 

However, many people make transactions with this digital currency and trade it without being hit by a Dogecoin scam. The key is taking precautions, working with regulated brokers and cryptocurrency exchanges, and researching getting involved with Dogecoin or other cryptocurrencies. 

The high incidence of Dogecoin fraud has caused many consumers to lose money. Contrary to popular belief, crypto fund recovery is possible. MyChargeBack experts guide consumers who are trying to recover their funds from broker disputes, Dogecoin scams, or other types of fraud. 

We consult with clients, research brokers, and create intelligence reports that will assist in fund recovery. In addition, MyChargeBack helps clients retrieve their funds through chargebacks, wire recall, and crypto recovery. 

How Dogecoin Began

Dogecoin was introduced in 2013, just four years after the birth of bitcoin. It was developed by Billy Markus and Jackson Palmer. The pair, who had significant tech backgrounds, intended Dogecoin as a spoof making fun of the crazy speculation in digital currencies. Dogecoin news reports showed its dog symbol as a kind of satirical cryptocurrency. However, the joke was on skeptics, as the Dogecoin price skyrocketed.

This cryptocurrency is closely associated with wild ups and downs in Dogecoin price as well as Dogecoin scams that make the headlines. Not long after this cryptocurrency was introduced, on December 25, 2013, millions of coins were stolen from the platform Dogewallet. The founders of Dogecoin worked tirelessly on fund recovery and even raised money to pay back those who lost money in this theft. 

Many fake exchanges and crypto brokers are claiming to dramatically increase returns for short-term Dodgecoin traders. Many of these unregulated brokers are guilty of Dogecoin fraud and disappear with funds. 

In addition, the creators of Dogecoin have become disillusioned with cryptocurrencies in general, and have expressed concern about manipulation. The wild fluctuation of Dogecoin has led some to conclude that this cryptocurrency is vulnerable to price manipulation and is a kind of pyramid scheme in which those who hold the asset encourage others to invest. 

Dogecoin and Volatility

To understand the volatility of cryptocurrency, Dogecoin price movements are a good place to start. Since its introduction in 2013, Dogecoin has been a highly valuable cryptocurrency, reaching heights in 2020 and 2021 largely following Elon Musk’s dogecoin comments on Twitter.

In 2014, dogecoin price briefly surpassed bitcoin, but its market capitalization lagged behind. In 2017, Dogecoin reached a historic high which ended when the cryptocurrency bubble burst and interest in digital currencies lagged for a few years. 

The COVID-19 pandemic brought Dogecoin back into the headlines. In 2021, Dogecoin price rose 800% on Elon Musk’s Dogecoin comments. There seemed to be a regular pattern that every time the Tesla CEO made bullish comments on Dogecoin on Twitter, the value of the cryptocurrency would rise between 20% to 40% for a day or two. 

Under ordinary circumstances, this might have led to a securities manipulation investigation, however, Dogecoin is not in the same category as stocks and is not regulated the same way. Therefore, cryptocurrencies are immune from certain types of Dogecoin fraud charges.

 The lack of regulation surrounding cryptocurrencies can make them less safe for consumers than other types of assets. As a result, celebrities such as Elon Musk, Gene Simmons and Snoop Dogg only have to mention this crypto asset and the Dogecoin price can go through the roof. 

In addition, Dallas Mavericks owner Mark Cuban announced that he would accept payment of tickets for games in Dogecoin. The result was a huge rise in price caused by Mark Cuban’s Dogecoin remarks. 

Is Dogecoin a Scam?

The issue of Dogecoin scam is complex. Some believe Dogecoin is a scam and others believe that it can be used legitimately but are concerned about the odd Dogecoin fraud. There are many grey areas. The founders, Markus and Palmer, who founded the currency as a joke to make fun of crypto speculation, have disowned the currency because they feel prices of cryptocurrencies can be manipulated easily and users can be exploited. 

This is a general complaint about cryptocurrencies, that celebrities and influencers can raise dogecoin price with just one tweet. If this were a stock, the SEC would investigate this phenomenon as Dogecoin fraud and would put regulations in place to protect consumers. Those who use cryptocurrencies should realize they are dealing with an unregulated asset, which makes it volatile and risky. 

However, even though Dogecoin and other cryptocurrencies lack thorough regulation, they are not necessarily or inherently frauds. Dogecoin fraud is created with the sole intention of robbing money from consumers, and that does not seem to be the intent of most people who deal with the currency. However, it can’t be denied that there are Dogecoin scams out there and it is important to take steps to stay safe. 

Here are some important things to remember to avoid  Dogecoin fraud:

  • Work only with a regulated broker or a licensed cryptocurrency exchange
  • Avoid quick deals on social media 
  • Research your platform or broker well 
  • Use forms of payment other than cryptocurrencies to facilitate chargeback if needed
  • Know who is behind the dogecoin service or broker

If you have lost money in a dogecoin scam, contact MyChargeBack, whose experts who can help you get your money back. Consult with us and provide information that can help us draw up an intelligence report and speak to regulators and authorities. We can assist investigations and negotiate with banks to help you with fund recovery. 

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