Su Zhu, CEO of Three Arrows Capital, has put forward a bullish thesis for Elon Musk’s favorite cryptocurrency Dogecoin (DOGE).
On an August 25 episode of The Game Theory of Crypto Podcast, Zhu stated that he likes DOGE because the meme coin has attracted more interest from blue collar traders than any other crypto on the market.
During the interview, Zhu pointed to data from the popular retail app Robinhood, which released its second quarter report earlier this month, reporting that 62% of the company’s crypto revenue in the second quarter came from DOGE trading:
“The best way to understand DOGE, in my opinion, is if you look at Robinhood, which is kind of a blue collar style of crypto investing, DOGE accounts for 60% of their crypto earnings. And crypto makes up 40% of Robinhood’s sales, so Robinhood is basically a DOGE proxy. “
“This is something I think is being mirrored now, interestingly in Coinbase. I mean, a few days ago the volume of DOGE was higher than that of ether […] You know, people want to deal with DOGE. ”He added.
Cointelegraph reported on July 19 that DOGE’s daily trading volume hit nearly $ 1 billion in the second quarter. By comparison, the average daily volume of the popular meme coin was $ 74 million in the first quarter.
The CEO of Three Arrows Capital emphasized that DOGE is “four times as well known as Ethereum” in communities unfamiliar with crypto when he echoed Elon Musk’s feelings of DOGE as “the people’s crypto”. He sketched that anyone “can own a lot of it”, even the “man who drinks beer can understand”, and the community promotes it organically.
“If you just look on social media, check out Twitter, Instagram, DOGE is the only coin you can see a woman showing another woman and not getting paid for it, just because she likes the coin “, He called.
You don’t have to be a gigachad to own it
– Elon Musk (@elonmusk) February 4, 2021
Related: Dogecoin Will Help Real Dogs – Chicago Animal Shelter Now Accepts Crypto
While more discerning traders might stay away from DOGE due to its meme coin status and volatility, Zhu challenged the idea that “crypto has to be serious” to be successful. He drew comparisons with Ripple (XRP), which recently had a lengthy litigation with the U.S. Securities and Exchange Commission but grew 36,000% in 2017.
“It kind of reminds me of XRP in the previous cycle, which is better in every way because there isn’t a foundation that has a lot of it. You don’t have to rely on a sophisticated ‘banks that use it for payments’. “
“It’s easy. And by the way, it was launched fairly. So there is no risk that it will ever be considered a security, is there? ”He added.