‘Shark Tank’ star and renowned investor Kevin O’Leary has likened investing in Dogecoin (CRYPTO: DOGE) to gambling and said the meme cryptocurrency may be considered just an “entertainment” as it has no inherent value.
What Happened: “When you speculate on something like Dogecoin, that’s no different than going to Las Vegas and putting your money on red or black,” O’Leary said in an interview with CNBC.
See also: How To Buy Dogecoin (DOGE)
O’Leary, chairman of O’Shares ETFs, noted that unlike investments in stocks, there is no informed decision making when a person invests in Dogecoin and the buyer simply hopes that the cryptocurrency’s price will rise.
The Canadian investing star also revealed that 10% of his operating company’s holdings are made up of digital tokens including Bitcoin (CRYPTO: BTC), ether (CRYPTO: ETH) and USD Coin (CRYPTO: USDC). He added he does not plan to add Dogecoin to his portfolio.
Why It Matters: Created as a joke cryptocurrency in 2013, Dogecoin has gained in popularity this year, thanks in part to the unstinted support of Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk. The altcoin’s popularity has also led to the creation of several Dogecoin imitators.
The Shiba Inu-themed cryptocurrency’s year-to-date gains stand at an impressive 3,568%. However, the prices of cryptocurrencies, including Dogecoin, are seeing high volatility in recent months.
Musk boasts more than 58 million followers on Twitter and his tweets on Dogecoin sometimes have an overwhelming impact on the price of the meme cryptocurrency. This prompted the U.S. Securities and Exchange Commission in May to caution investors not to make investment decisions just based on celebrity endorsements.
Price Action: Dogecoin is up 2.2% during the last 24 hours, trading at $0.2090 at press time.
Photo: By Dustin Blitchok. Benzinga CEO Jason Raznick, left, and O’Shares ETF Investments Chairman Kevin O’Leary at Benzinga’s Detroit headquarters in 2018.