According to CoinDesk, Dogecoin (DOGE) experienced a 9% price jump to 8.3 cents after a fake social media rumor claimed the death of the token's mascot, Kabuso. The rumor was later recanted, and the price retraced to around 8 cents, still higher than the 7.7 cents it traded at before the fake news. The volatile episode frustrated crypto market observers and added to the asset class' reputation for alleged market manipulation and speculative nature.
The swift price swing also wiped out leveraged trading positions, with CoinGlass data showing that over $674,000 worth of leveraged derivatives trades were liquidated within an hour, topping all other crypto asset liquidations, including bitcoin. Dogecoin, which started as a joke cryptocurrency in 2013, has amassed a global following and now has a market capitalization exceeding $11 billion. The events occurred as the crypto market awaits regulatory approval of a spot bitcoin exchange-traded fund (ETF) in the U.S., considered a landmark win for the industry's maturation.