Su Zhu, CEO of Three Arrows Capital, has formed a bullish thesis for Elon Musk's personal favorite cryptocurrency, Dogecoin (DOGE)
Three Arrows Capital CEO Su Zhu has formed a bullish thesis for Elon Musk's personal favorite cryptocurrency, Dogecoin (DOGE). In an episode of “The Game Theory of Crypto Podcast” on Aug. 25 Zhu revealed that he is totally interested in DOGE due to the meme coin which grabbed the complete attention from “blue-collar” traders than any other crypto on the market.
During the interview, Zhu mentioned the data from popular retail trading app Robinhood which stated that its second-quarter report had reported that 62% of the firm's Q2 crypto revenue was from DOGE trading: “The best way to understand DOGE, I think, is that if you look at Robinhood, which is sort of the most blue-collar style of crypto investing, DOGE is 60% of their crypto revenue. And crypto is 40% of Robinhood's revenue, so Robinhood is basically a DOGE proxy. "
“This is something that I think is mirrored as well now, interesting across coinbase. I mean, a few days ago, DOGE volume was higher than Ether… You know, people want to trade DOGE, ”he added. The Three Arrows Capital CEO stated that DOGE has “Four times the name brand recognition over Ethereum ” in communities not totally educated about crypto as he quoted Elon Musk's sentiments of DOGE being the “People's crypto”. He also mentioned that anybody can have “whole amounts of it,” even the “man who drinks beer can understand it,” and the community advances it further organically.
“If you just look on social media, you look on Twitter, Instagram, DOGE is the only coin where you can see a woman showing another woman and not being pain to do so, but just doing so because she likes the coin,” he said. There are traders who prefers to stay away from DOGE due to its meme coin status and volatility, Zhu introduced the idea that “crypto needs to be serious,” to be successful. He made comparisons with Ripple (XRP) which is now going through a lengthy legal battle with the United States Securities Exchange Commission more recently, but reached a 36,000% gain in 2017. “Its kinds of reminds me of XRP in the previous cycle, which is better in every way, because one, there is no foundation that has a ton of it. There's no reliance on an elaborate 'banks using it for payments narrative. It is simple. And it's also fair launched by the way. So, there's no risk of having it ever be deemed a security, right? " he said.