Sometimes a crypto crash wipes out wealth so severely.

Despite the well-known volatility of cryptocurrencies, investors do not seem deterred. Crypto can have big days when values soar. And there can be big days where prices go the wrong way.

When values plummet, it's hard to be prepared. A crypto crash is uncertain; nobody knows the exact time when it will happen.
But what causes a crypto crash?

## Cryptocurrency Security

Network security is a factor that could spark a crypto crash. Security flaws in any blockchain can cause concern among the public and regulators, impacting on the value of coins and tokens on that network. The value of crypto is driven by investors' interests; fear, uncertainty, and doubt can lead to a crypto crash.

## Volatility in the Cryptocurrency Market

When investors liquidate high volumes of a digital asset, crypto markets witness volatility. While this can hurt some investors, there are others watching for, or perhaps contributing to, such a situation. Others drive up prices and over-inflate the value of certain coins and tokens, again contributing to volatility. Both have contributed to crypto crash scenarios, when prices are deliberately forced down or plummet when the hype dies. 

## Cryptocurrency Regulation

China banned crypto mining in 2021. This move, positioned as regulation, saw cryptocurrency values decline as the hash rate slowed.
This is a single example, but demonstrates how regulation can contribute to a crypto crash.

## Crypto Influencers

This is an extension of the volatility explanation, but is specifically referencing those who use their platforms to shift prices, deliberately or not.

For example, when[ Elon Musk tweeted his support](https://www.marketwatch.com/story/elon-musk-tweets-about-dogecoin-and-prices-immediately-jump-11620947452#:~:text=A%20day%20after%20revealing%20that%20Tesla%20Inc.%20would,improve%20system%20transaction%20efficiency%2C%E2%80%9D%20Musk%20tweeted.%20%E2%80%9CPotentially%20promising.%E2%80%9D) for [Dogecoin](/coins/doge), the value soared. When he criticised other cryptocurrencies, their values fell.

## The Stock Market

Although seen as distinct, there is a correlation between activity on old-fashioned stock markets and the new crypto exchanges.
There is so much that can impact a market value, this is inevitable. If taxes go up in a country, or financial regulation is tightened, or inflation and cost of living explode, both types of market will be impacted similarly.
 
 



Reasons for a Crypto Crash Examined

Here’s a crypto market round-up for the past week with some highlights you might have missed.

## A Buying Opportunity for Ripple (XRP)?

Earlier this week, Ripple CEO Brad Garlinghouse said that his company was making significant enough progress in the company’s legal battle with the US Securities and Exchange Commission (SEC) to make him think the lawsuit would likely end next year. Whatever the outcome, the results of the lawsuit are expected to have a widespread effect on the cryptocurrency industry as a whole.

Thus far, the ongoing legal battle between the SEC and Ripple has interfered with the potential of Ripple’s digital coin ([XRP](https://coinmarketcap.com/currencies/xrp/)). The XRP coin has _not_ enjoyed the same rate of success as other lesser-known digital assets, but all things considered, the XRP coin _is_ up more than 130% year-to-date which is quite an accomplishment for such an embattled company.

The XRP has been on a downward trend since hitting a ceiling of 1.35 on Nov. 11th, and if the XRP coin should fall to .85, many believe it would be the key support point for XRP and a good opportunity to buy again.

If the outcome of the SEC affair leans in Ripple’s favour, many believe it would send the market into a massive buying frenzy. If what Garlinghouse says is true, we don’t have much longer to wait.

## Dogecoin - Most “Googled” Cryptocurrency

Continuing our crypto market round-up, we move to Dogecoin.

It can only be interpreted as a ‘positive’ for the cryptocurrency that was originally created as just a joke by a couple of software engineers back in 2013. Dogecoin became the most-googled cryptocurrency in more US states than crypto titans Bitcoin and Ether combined. So, will Doge go up based on recent popularity surges?

According to research by [The Advisor Coach](https://www.theadvisorcoach.com/), a financial advisor, Dogecoin, a cryptocurrency that is based on an internet meme of a Japanese Shiba Inu dog, was the most Googled cryptocurrency in more than 20 states, including Florida, Illinois and Michigan.

2021 has been a great year for Dogecoin thanks largely to mega-boosters like Tesla CEO, Elon Musk, who has made positive remarks about the cryptocurrency on Twitter and has even hinted at the possibly of accepting Dogecoin as a form of payment for his car models. Dogecoin is up approximately 5000% since it was introduced, according to some valuations.

## Crypto Wallet Start-up BRD Bought

Crypto wallet start-up BRD, formerly known as Breadwallet, has been acquired. BRD is behind the digital asset Bread (BRD) and once news of the acquisition by Coinbase was announced, crypto investors were buying.

The price of BRD coin immediately went stratospheric, achieving a 500% plus increase in value within just two hours of the news being announced.

BRD went from approximately $0.16 and peaked just over a dollar per coin ($1.01).

BRD co-founders Adam Traidman and Aaron Voisine said that deal ‘will accelerate the company’s decentralization goals’ and that ‘nothing will change’ for users following the company’s acquisition.



Will Doge Go Up & Is it Time to Buy XRP?

The cryptoverse is awash with stories of record returns from cryptocurrency meme coins like Doge and, more recently, Shiba Inu.

However, does the hype match the reality and how wise is it to invest in a meme stock?

## What is a Meme Coin?

A meme coin is essentially a cryptocurrency which is based on a joke or a meme and uses that tenet as its primary marketing feature.

The most well-known meme coin is Doge, which is based on the famous meme of the same name.

However, unlike other cryptocurrencies, meme coins are generally used for trading or investing with little to no utility.

That said, meme crypto Shiba Inu has seen a massive spike in interest over the last six to 12 months and has recently been accepted for payment in a Paris restaurant.

## Open-Source Technology

Many cryptocurrency projects are a result of open-source technology essentially meaning that the creators share the code which enabled them to build the original project.

This revolutionary approach to development has helped provide the catalyst for the boom in crypto over the past three to four years. Many new entrants ‘fork’ from an original code to produce an entirely new coin with a slight modification. Doge, for example, is a fork from the original Litecoin code.

## Meme Coin Hype

So, what is all the hype about? As I mentioned above, the majority of meme coins on the market today are used for trading and investment purposes with buyers looking for an opportunity to purchase the next Shiba or Doge coin before they hit the big time.

With stories of $8,000 becoming $5.7 billion in a little over a year it is easy to understand why. However, with 222 meme coins listed on coinmarketcap.com, picking the next investment rocket may be easier said than done.

## A Serious Investment?

As more capital pours into meme stocks people will continue to sit up and take notice. This, in turn, is bringing more serious investment and leading to developers looking for ways to upgrade the network and provide meme coins with an actual use case which is something we have seen this week in Paris.

What is a Meme Coin?

In a recent tweet, Elon Musk has called Dogecoin (DOGE) the 'people's crypto'.

Elon Musk [tweeted](https://twitter.com/elonmusk/status/1452348126753349640): "That’s why I decided to support Doge – it felt like the people’s crypto." The meme coin has seen an increase in popularity recently as Musk has shown his support for the coin publicly. However, Dogecoin is still around 63% away from its lifetime peak despite Musk's attempts to send the meme coin soaring.

## SHIB Competes with DOGE

Competing meme coin, Shiba Inu (SHIB) has recently skyrocketed over 500% and has recently taken the lead ahead of Dogecoin. Elon Musk took to Twitter to say that he isn't holding any SHIB, only DOGE. Shiba Inu [tweeted](https://twitter.com/ShibaInuHodler/status/1452313323261861891?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1452332435266576395%7Ctwgr%5E%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fu.today%2Felon-musk-calls-dogecoin-peoples-crypto-rejects-shiba-inu) 'Hey [@elonmusk](https://twitter.com/elonmusk) How Much [Shib](https://twitter.com/search?q=%24Shib&src=cashtag_click) You Are Holding!' to which the businessman replied 'None'.

## Puppy Post Boosts SHIB

Musk shared an image of his puppy a few days ago which helped to boost SHIB up the market ranks, but after he has admitted not owning any SHIB, the meme coin is reportedly down 15%.

Dogecoin has been struggling to keep up with Shiba Inu, but is now up 12% in the last week thanks to Musk's tweet.

Find out more about [Dogecoin](/coins/doge)

Latest Moni

#DOGE | Page 2

Read the latest DOGE news here.

Reasons for a Crypto Crash Examined

Will Doge Go Up & Is it Time to Buy XRP?

What is a Meme Coin?

Doge is the 'people's crypto'- Elon Musk

Axie Infinity Coin: Origin a Gamechanger?

BTT Crypto: BitTorrent Token Price

Singapore Regulator’s Clampdown on Crypto