© Reuters
The cryptocurrency recently witnessed a sharp but brief rise in value, sparked by a false report circulating on Telegram claiming the death of its famous mascot, Kabuso. The misinformation caused Dogecoin’s price to briefly rise to 8.3 cents, an increase of 9%, before stabilizing at around 8 cents.
The fake news, spread by an unidentified user, sparked liquidations of more than $674,000 as traders reacted to the unverified claim. This event underscored the vulnerability of cryptocurrencies like Dogecoin to sudden market moves based on rumors and highlights the broader impact that unverified information can have on digital asset valuations.
Despite the temporary disruption, Dogecoin continues to maintain a substantial position in the cryptocurrency market, with a reported capitalization of $11 billion. The incident serves as a reminder of the inherent volatility within cryptocurrency markets and the importance of critical evaluation of news sources within the investment community.
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