Intrigued by Dogecoin? The ABCs of a $ 90 Billion Joke: QuickTake
Dogecoin might not be the funniest joke ever, but it’s probably the one with the highest valuation in the market. The digital token, previously known as the premier ‘memecoin’, approached $ 90 billion in early April as retail traders seized high-risk (and meme-friendly) opportunities fueled by the exceptional economic stimulus from the era of the pandemic. A year ago, it was worth $ 315 million, a figure many thought ridiculously high at the time. No kidding!
1. What is Dogecoin?
“Dogecoin is an open source peer-to-peer digital currency, promoted by Shiba Inus around the world,” according to Dogecoin.com, which also claims that 1 Dogecoin = 1 Dogecoin. So let’s just say the people who work there aren’t afraid to have a little fun. What is it really? A digital token created in 2013 by software engineers Billy Markus and Jackson Palmer with a photo of a Shiba Inu, a dog breed that has become popular in internet memes.
2. What was the joke?
It’s pretty much just a cryptocurrency created with the Doge meme, which was popular when it was created in 2013, just as Bitcoin was gaining worldwide attention. The meme used a 2010 photograph of a Shiba Inu, and was often posted with thoughts expressed in broken English type. “I’m half detached, but it’s strange that something that I achieved in a matter of hours is now part of internet culture,” Markus told Bloomberg. an interview in February.
3. Why has it increased so much?
As interest in cryptocurrency and trading in general increased this year, Dogecoin was waiting to be found by retail investors. Sam Bankman-Fried, founder and CEO of the FTX cryptocurrency derivatives exchange, says that after the brokerage application, Robinhood restricted trading in GameStop Corp. at the height of a meme-driven stock market frenzy, “hundreds of millions of dollars were transferred seamlessly” into Dogecoin. The coin received a big boost on April 20, aka 4/20, a day traditionally associated with the pot. Dogecoin users decided to celebrate #DogeDay and increase the price to 42 ¢, or 69 ¢ – another joke number – or even $ 1. They managed, sort of, with the price hitting a record high of 41.9 ¢ that day, according to CoinGecko.com. He then slipped over 25% from that high.
4. Who pushed him?
Dogecoin has drawn famous billionaire fans including Elon Musk, the co-founder of Tesla Inc. and Dallas Mavericks owner Mark Cuban. Musk tweeted everything about a discussion about setting up Dogecoin mining platforms with his children, like a $ 1 bill with the Shiba Inu on it, for simply, “Doge. “On the other hand, Musk knocked the price down dramatically in May, when he appeared on” Saturday Night Live “and jokingly referred to Dogecoin as”jostle. “
5. What else drove him?
Much like Bitcoin, the same is true of other cryptocurrencies, and its surge was clearly a factor in Dogecoin’s rise in April. And when the price of a Bitcoin exceeded $ 60,000, being able to pay 40 cents for a Dogecoin won on appeal, regardless of the surge that arose. There is also the idea that the longer something has been around in the brave new world of cryptocurrency, the more credibility it has. Since Dogecoin was founded in 2013, he’s practically been an older statesman in the crypto world.
6. Is it really good for something?
You can purchase Dallas Mavericks merchandise, courtesy of Team Owner Mark Cuban (also someone who is known for touting DOGE). A lunar satellite launch involving SpaceX (another of Musk’s companies) was also paid in Dogecoin. However, there are a few places that will lead it – it’s not really widely accepted at this point. And maybe some people just think it’s fun to be with you for the ride.
7. What are the risks?
Investors – especially newbies who don’t necessarily know much about crypto – could get burned. Also, some technical aspects may not be as robust as with the major cryptocurrencies. Funding to improve the quality and security of its software simply does not exist. It’s catching up, as the surge in interest is attracting more developers, but the process won’t happen overnight. Konstantin Richter, CEO and founder of Blockdaemon, a blockchain infrastructure provider, said earlier this month that There are questions about software development and Dogecoin’s roadmap, but this is going to catch up. If Dogecoin is very valuable and people can make money by creating apps, they will, he said.
8. Who wins and loses money?
Dogecoin is off for a pretty crazy ride – but everyone who has had it for more than a few months has made money. After all, he started the year at around half a cent! Still, there are probably also a lot of people who bought the high (it hit around 73 cents on May 8) and might be underwater now.