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Kunal Sawhney, the CEO of Kalkine group, an independent equity research and media firm with offices in Australia, New Zealand, the UK, Canada and the United States, has advised that Dogecoin needs to address security and scalability issues with the cryptocurrency before investors should continue to buy it.

Dogecoin is an open-source, peer-to-peer cryptocurrency. It was split from Litecoin and emerged in 2013 as a “joke.”

The digital currency has appreciated in value by over 16,000 per cent over the past year. The comment by Tesla CEO Elon Musk, on April 1, 2021, that he will put Dogecoin on “the literal moon,” saw a surge in its price. However, Musk’s more recent comment over the weekend, which affirmatively reacted to a suggestion that Dogecoin is a “hustle,” saw the cryptocurrency lose 36 per cent value.

In a statement sent to Financial Nigeria today by Kalkine, Sawhney said: “While Dogecoin has recouped some of the losses incurred over the weekend, the latest crash exposes the vulnerability of the digital assets at a time when the investors are going berserk over the crypto momentum.”

He added that the global liquidity surge, coupled with the calibrated curbs on non-discretionary spending, has put various asset classes on steroids. Be it property space, equity markets or digital assets, the steep hike in asset prices amid a low interest rate regime has sparked discussions on the possibility of a bubble-like scenario.

Further on Dogecoin, Sawhney said: “Evolving from a meme to a widely traded digital asset, Dogecoin has managed to gain ground in the crypto space in a record time. Dogecoin is a decent value opportunity; however, exit points need to be clearly defined given the lack of meaningful value. Besides, security and scalability issues need to be clearly addressed before placing a trade on the meme-inspired cryptocurrency.”