Why Dogecoin Is Up 20%

Why Dogecoin Is Up 20%

Bloomberg

(Bloomberg) – For Ahmad BinDawood, last year’s share offering in the eponymous Saudi grocery business was a chance to shape his legacy at the family firm he’s worked at since the age of eight, while cementing a $3.1 billion fortune built over the decades by his father and uncles.As the October public offering of BinDawood Holding Co. got underway, details emerged of some $76 million in previously undisclosed loans made by the Saudi company to family members. In a departure from the traditional secrecy associated with the kingdom’s family firms, Jeddah-based BinDawood revealed everything, put the IPO on hold and gave buyers the chance to take their money back.As the loans were quickly repaid, the sale resumed and eventually raised about $500 million for the family, attracting $29 billion in bids along the way.“We have to be very transparent with investors,” BinDawood said in an interview in Riyadh last month. “If there is any disclosure at any time that we need to make, we will go ahead and do it. So we took this on the shoulder and decided to announce it.”The success of the IPO has helped establish BinDawood, 37, as one of a new breed of Saudi executives rising within a corporate world that was largely off-limits to foreigners until a few years ago. What’s more, it has made him emblematic of a drive to shake up traditional ways of doing business, dovetailing with Saudi Crown Prince Mohammed bin Salman’s goal of transforming the oil-rich kingdom into a regional business hub.That mold-breaking character can even be seen inside BinDawood stores. The past few months have seen the company doing prominent Valentine’s Day and Easter promotions, a move unthinkable just a few years ago in a country that has historically adhered to a strict Wahhabist interpretation of Islam.Prince Mohammed’s commitment to reshaping the economy isn’t all working in BinDawood’s favor. A sudden decision to triple value added tax last year hit consumer spending. Higher customs duties and fees on expatriates are driving up costs for Saudi firms, too. And all at a time when the Covid-19 pandemic has been stoking unemployment.“We remain cautious of near-to-mid term growth across the consumers space as market size shrinks on potential expat depopulation,” said Mehwish Zafar, a senior equity analyst at Arqaam Capital in Dubai who has a “hold” recommendation on the shares. Like-for-like sales growth will probably be negative until at least 2022, he said, with growth only coming from new store openings or acquisitions.Shares in BinDawood jumped more than 30% in the days immediately after the sale. They have since slipped back, showing as of Monday a gain of about 11.5% from the listing price.It’s a performance that has helped buttress the family’s bid to diversify into other assets while strengthening the core business, a goal identified by Ahmad BinDawood as key to avoiding the kind of strife his father feared might undermine the business as it passed to a new generation.“The majority of family businesses don’t survive the transition to the third generation, and that’s something that concerned my father a lot,” BinDawood said.Pilgrims ProgressThe rise of the BinDawood business has been some 40 years in the making. Once a small-time vendor of Arabian perfumes and groceries to pilgrims visiting the Islamic holy sites of Mecca and Medina, it is now a nationwide concern spanning supermarkets and hypermarkets, hotels and distribution centers. The grocery business alone employs more than 10,000 people across 74 stores.Ahmad BinDawood’s own destiny was sealed as soon as his father, Abdulrazzag BinDawood graduated in the 1980’s from the King Fahd University of Petroleum and Minerals in Dhahran. Instead of following his peers into the oil industry, he decided to join his brothers Ismail and Abdullah in their burgeoning retail trade.Which is why Ahmad found himself on the front line at such a young age. At just eight, he was helping to sell items to the pilgrims during his school holidays, envious of friends who were away avoiding Saudi Arabia’s scorching summers.“Our friends were traveling and off enjoying themselves and sometimes we would would ask: why not us?” BinDawood said. “But that experience built the passion in us to stay in the business that our father and our uncles built.”A decision to push into online shopping and delivery helped prepare the firm for lockdowns during the coronavirus pandemic, but couldn’t outweigh the hit from the absence of religious tourists who were prevented from entering the kingdom for much of the year. While profit climbed almost 7% last year, it had slumped more than 53% in the fourth quarter as Saudi Arabia reimposed travel restrictions.BinDawood is still optimistic that shoppers will return as travel resumes, though how quickly pilgrims come back to Saudi Arabia in anything like their previous numbers remains uncertain.Next up may be the purchase of a rival grocery chain to expand into neighboring countries, BinDawood said. At the same time, the IPO proceeds will help further develop the BinDawood Group family office, which Ahmad’s father is now running. That fortune, which is split across several family members, is estimated at about $3.1 billion, according to the Bloomberg Billionaires Index.“The IPO had two main angles to it – sustainability and continuity of the business first, and second the diversification for the family,” he said. “We are in the process of building the family office and bringing in the right talent.”More family businesses are likely to follow in BinDawood’s footsteps. The IPO of Saudi Aramco in 2019, which many Saudis never thought they would see, “has been a massive driver in motivating families to take their operating businesses public to help grow their enterprises and generate new wealth,” said Tayyab Mohamed, co-founder of London-based family office staffing firm, Agreus Group.For all the challenges, Ahmad BinDawood is optimistic, citing his life-long involvement in the business as a foundation for success.“Retail is embedded in our DNA now,” he said.(Updates share performance in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

Why Is Dogecoin Going Up? The Price Of This Meme Stock Rose Up 20 Percent In Just 24 Hours

Over the past couple of days, the popular cryptocurrency Dogecoin saw a rise in its prices on the crypto markets. The meme cryptocurrency rose up to 20 per cent in value yesterday. The reason for the rise in prices for this Dogecoin is baffling. Read on to know why is Dogecoin going up.

Why is Dogecoin Going Up?

Over the past couple of week, the cryptocurrency market has been very bullish, and a lot of major cryptocurrencies are seeing an upward trend in prices. Over the past couple of days, XLR and XML both have also seen a significant rise in prices up to 20 per cent. Dogecoin also rose to one of its highest prices yesterday, at a price of 0.088 dollars. The prices of Dogecoin usually follow the trend of Bitcoin and Tesla as Elon Musk is a supporter of Dogecoin.

Whenever the prices of Bitcoin rise, the Dogecoin price also goes up. Bitcoin was trading at around 60,000 dollars yesterday, just a few hundred dollars short of its record price of 61,000 dollars. As a result, the whole crypto market was bullish, meaning people were buying up crypto stocks which led to rising prices of many cryptocurrencies. Elon Musk also tweeted about Dogecoin insinuating the prices of Doge are soon going to the Moon.

‘To the Moon’ is a term that was popularised by Wall Street Bets and is used by people to say the crypto/share’s prices are going to rise up dramatically. Fueled by Elon Musk’s tweet, a lot of people bought large quantities of Dogecoin (DOGE), which drove up the prices from a 24 hour low of 0.062 dollars to 0.078, a 20 per cent rise in the price. At the time of writing this article, the price of DOGE stands at 0.7 dollars.

pic.twitter.com/pRx2WM9s6z — I B R U H (@h4q3r) April 10, 2021

About Dogecoin

Dogecoin is a cryptocurrency that was originally formed in 2018. Doge was built to be a friendly introduction to the concept of cryptocurrency and had a ‘fun and friendly’ brand image behind it. The face of DOGE was the dog Shiba Inu, who became popular as the DOGE meme. It literally became a ‘meme cryptocurrency’. Nobody in the early years believed DOGE would become as valuable as it is today. However, Dogecoin grew in popularity because of the community surrounding it was massive and they basically made DOGE look like the money of the future. Popular celebrities like Elon Musk also supported and joked around about Dogecoin. Today, Dogecoin has become one of the most popular cryptocurrencies.

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Elon Musk’s Mars Colonization Plans May Have to Wait, He’s Going to the Moon ‘Very Soon’

Elon Musk has set his sight on Mars… err, the moon. The Tesla CEO and SpaceX boss who has been obsessed with colonizing the red planet has now set his eyes on a different celestial body: The moon. But it may not be all literal, and it may be the result of the billionaire’s personal vested interest in cryptocurrencies like Bitcoin and Dogecoin. Elon Musk has an obsession with the two cryptocurrencies – The billionaire SpaceX CEO and Tesla boss every so often post something about the Internet’s favourite meme cryptocurrency that drastically shoots up the price every time he tweets about it. And it seems his obsession and enthusiasm isn’t dipping anytime soon.

Late on Saturday, Musk posted a vague tweet, “… going to moon very soon.” While this seems ordinary enough, crypto enthusiasts will know it is actually part of an original phrase that bitcoin miners and cryptocurrency nerds often use when talking about the prices and value of the cryptocurrency, for example, “We’re taking Bitcoin prices to the moon!” And whether Musk may not have meant it about cryptocurrency for a rare change, but prices of Bitcoin still jumped up all the same.

Bitcoin surged above $60,000 for the first time since March, approaching record highs on Saturday, according to Business Insider. As of 9:00am eastern time on Sunday, the currency was at $59.604.06 on the Bitstamp exchange. The cryptocurrency is up over 700% from a year ago when a single bitcoin was below $7000. This year, bitcoin is up over 100% after a February rally brought the cryptocurrency over $50,000 for the first time.

Could Musk’s tweet be the reason?

… going to moon very soon— Elon Musk (@elonmusk) April 10, 2021

Probably. This isn’t the first time Musk has done this. This isn’t even the second. (At this point we’re losing count.)

On April 1, Musk shared a tweet that read, “SpaceX is going to put a literal Dogecoin on the literal moon.” While the cryptocurrency is invisible, and not a real-life object you can physically touch, the ‘literal’ bit may be debatable. What Musk could imply would be either putting a representation of what Dogecoin is on the moon, in the form of a statue, or art installation, or a visual representation of the cryptocurrency with the Shiba Inu’s face. It could alternatively mean, he would somehow set up a computer or platform to trade the cryptocurrency out of, on the mooon. Musk’s tweet didn’t clarify.

Musk in February had posted a Twitter poll, asking his 45.8 million followers to choose “the future currency of Earth.” He gave two options: “Dogecoin to the Moooonn” or “All other crypto combined.”

The poll resulted in 71.3% of the 2.4 million voters saying that “Dogecoin to the Moooonn” would be the future of currency. Looks like Musk plans on actually ensuring it.

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