Zap Protocol co-founder Nick Spanos has said he believes Dogecoin is a fad, but it could nevertheless have a positive, longlasting effect on the crypto markets.
Speaking to Cointelegraph on Monday, Spanos said: “DOGE is a fad, within a growing movement that is here to stay.
Continuing, he described DOGE as a “powerful marketing tool, driving attention and adoption of crypto and decentralization as a concept.
“And in that respect, it is invaluable,” he added.
He said he believes the recent DOGE selloff will result in capital inflows to other altcoins, as most people are unlikely to just cash out and convert their money back into fiat.
“I expect many people to cash in on their DOGE profits in the coming days, and this is likely to boost the wider crypto market as a lot of this money will flow into other altcoins, which have strong potential instead of it being converted into fiat money,” Spanos said.
DOGE lost 38% of its value over the weekend, with it falling from $0.72 to $0.44, before rebounding in a couple of hours on Monday morning.
The meme currency was launched as a joke several years ago, but its value surged this year as the “DOGE army” began pumping its price up and Tesla CEO Elon Musk posted a series of cryptic tweets about this digital asset.