THE ANATOMY OF
The rise of crypto-populism! Is doge coin losing its steam?
Cryptocurrency market is one of the most volatile markets to date, with a 10X volatility more than any traditional currency exchange market (Bauer 2021). Despite the classic interpretation of cryptocurrencies as a type of “investment” (Glaser et al 2014), they turned to be quite the destination for all different types of investors. In this article, we take a look at the data aggregated from the social media activity of people discussing the phenomena of #DogeCoin ($DOGE) and how this data can provide an insight on the future of this cryptocurrency.
- There is a growing ambition and dutifulness surrounding #Dogecoin.
- A massive increase of boredom has grown in social media discourse over 11 days.
- An increased fear of the future of this coin is coupled with a drop in curiosity and amusement trading with $DOGE.
Doge Coin started as a joke in 2013 by creating a cryptocurrency of the much-loved doge meme: a meme based on Shiba Inus, known online as Shibes, which is a breed of dog native to Japan. The doge coin came as a derivative from Luckycoin which was forked from Litecoin. It operates on the Binance Smart Chain platform. Dogecoin has a current supply of 128,688,190,346.02287 and is currently trading on 314 active markets with $2,193,240,184.61 traded over the last 24 hours from the date of writing this insight.
As the chart below shows, the dogecoin gained a huge inflation in trade price in 2021 after the seemed-to-be endorsement from Elon Musk. Since then, dogecoin and its language derivatives, dominated social media with popular hashtags, trending tweets and memes.
For this analysis, we looked at the tweets that contained the hashtag #dogecoin. We collected the data on two separate occasions to compare results, and to draw any trends from analysis result. 10,000 tweets were collected on 21st of February,2021 and another 10,000 tweets on 4th of March 2021.
After compiling the data, we applied our own methodology in analysing the data. Consult Upgrade methodology is a set of unique innovative data processes in which we apply quantitative and qualitative analyses technique to the aggregated data, informed and guided by a custom-made pragmatic, linguistic and psycholinguistic coding framework.
Over the period of 11 days, there was a number of insightful findings regarding the sentiments towards #dogecoin, the change in personality traits of tweeters, and the rise of cult-like phenomena.
Feelings & Sentiments: The Bored and The Dutiful
The data showed an increase in conscientious sentiments among tweeters, specifically dutifulness and ambition, +24% and +30.66% respectively. However, neuroticism traits were on the rise with an increase around +20% in stress-prone, anxiety-prone, and aggressive tweeters. Emotions expressed in tweets compared did not fare much better with a whopping +183% increase in boredom, a +65% drop in curiosity and around +19% increase in caution and fear. Tweets also showed a drop in surprise, joy, and amusement, with a touch of increased sadness.
Frequency: Dr. Buy and Mr. Sell
With “buy” & “Sell” being the dominating verbs in such corpora, the word combination with these two verbs showed some quite interesting trends. The verb “sell” over the time is linked with “panic”, pressure”, “a*****e” and “idiot”. “Buy”, on the other hand, is more consistently coupled with “dip”, “Elon” and “rather”. The tweets containing “doge” showed a fewer use of “rise”, “break”, “grow”, “pump” and “believe”.
After Elon Musk’s endorsement of $DOGE, tweets hashtagged #dogecoin reflected a rise of his figure to almost a cult-hero. Tweets positioned Elon Musk as a Godfather, a redeemer, and a crypto-populist whose promises will take those cryptolitariat from a pandemic-hit life to a post-pandemic paradise where they join the elite “investors”. The famous “to the moon” phrase is often linked with Elon Musk. In addition, cries for help were linked with his twitter handle in words like “need”, “promise”, “hurry”, “pap” and “uncle”.
Baur, D.G., Dimpfl, T. The volatility of Bitcoin and its role as a medium of exchange and a store of value. Empir Econ (2021). https://doi.org/10.1007/s00181-020-01990-5
Glaser F, Zimmermann K, Haferkorn M, Weber MC, Siering M (2014) Bitcoin-asset or currency? Revealing Users’ Hidden Intentions. https://ssrn.com/abstract=2425247