Dogecoin to the moon! If you are active on social media like Twitter, you may have come across tweets like this. Related tweets about dogecoin don’t come from just wannabes in the crypto space. Elon Musk is the strongest and most influential supporter of dogecoin. With just a single tweet, he made the price of the altcoin soar.
American billionaire and Dallas Mavericks owner Mark Cuban is also known to be a dogecoin staunch supporter. In recent reports, his company adopted the digital asset as payment for his team’s NBA tickets and merchandise as well. So, dogecoin is not just another altcoin after all given its powerhouse supporters.
But why is dogecoin called a bitcoin meme? Let’s travel back in time from its time of invention to get to know more about dogecoin.
The Birth of Dogecoin
Dogecoin, a bitcoin meme. DOGE is the ticker of dogecoin. It bears the face of the Inu Shiba dog as a logo and namesake and was created with no real purpose but to create laughs.
Jayson Palmer worked as a product engineer at Adobe Inc. in Sydney, Australia. After getting positive feedback on his newly created crypto, he decided to buy the domain dogecoin.com.
Billy Markus on the other hand is another crypto enthusiast who wants to create his own crypto. Then he came across Dogecoin online. He reached Palmer and together they created dogecoin.
Markus took charge of the coding using code from Luckycoin and Litecoin. The created altcoin uses Litecoin’s scrypt technology which can be mined through FPGA and ASIC devices. Dogecoin was first released on December 6, 2013. Ironically, the two creators never met in person.
ON Dec. 19, the price of the crypto asset soared to 300% from its price of US$0.00026, dogecoin went up to $0.00095.
Dogecoin: No Longer a Fun Altcoin
The seeming success immediately vanished following an 80% price crash as a result of China’s action against bitcoin and other cryptocurrencies. Also, large mining pools exploited the small amount of computing power required for mining contributed to the slump in its price.
Dogewallet, a crypto wallet, has fallen victim to hacking that resulted in the loss of millions of coins in Dec. 2013. Online fundraising was initiated by the Dogecoin community and in a month, the lost funds were covered by the donations.
Dogecoin’s trading volume is starting to pick-up one year after its release surpassing bitcoin in January 2014. But despite this, its market capitalization is way behind bitcoin.
In a tweet, Palmer announced his departure from the Dogecoin community in April 2015 citing toxic culture as the main reason.
“Will be taking an extended leave of absence from the toxic (and quite frankly, stagnant) space that is cryptocurrency.”
With Palmer’s departure, toxic members of the community continue to operate. Alex Green, also known as Ryan Kennedy, the founder of Moolah, a dogecoin exchange is known for being an extravagant tipper. On one occasion, he accidentally donated $15,000 instead of $1,500 to a NASCAR fundraiser. It was later found out that he used the money he solicited for the launching of the exchange worth $1.5 billion bitcoins from members of the community to support his lavish lifestyle. In 2016, he was convicted in a separate case.
With toxic members in the dogecoin community, where is the altcoin heading this time?
The Revival of a Dying Doge
Alas, hope is finally coming. Despite the bubble peak in 2017, DOGE (dogecoin) reached a peak of $0.018 and has now a total market cap of $2 billion. Though it eventually went down with the rest of the crypto assets due to the effect of the crypto bubble that lasted until 2018.
In 2019, a new chapter has opened for the bitcoin meme. DOGE (dogecoin) was listed on Binance in the same year. What’s more, the year 2019 marked the entry of its strongest ally, Elon Musk. On April 2, 2019, Musk made his first-ever tweet on cryptocurrency.
“Dogecoin might be my fav cryptocurrency. It’s pretty cool.”
From then on, Elon Musk has been consistently vocal about his support for dogecoin. He made several tweets that paved the way for the price of Dogecoin to rise. Celebrities joined him later on in promoting dogecoin on Twitter. On Jan. 29, DOGE (dogecoin) recorded a new all-time high at $0.08 after a group of traders on Twitter and Reddit hyped the altcoin’s price.
Adoption followed. On Feb. 9, Nissan Daytona announced on its website and social media account that it will start accepting Dogecoin as payment. Dallas Mavericks in partnership with Bitpay now accepts dogecoin as payment for tickets and merchandise. Mark Cuban, the team owner said in a press release:
“The Mavericks have decided to accept dogecoin as payment for Mavs tickets and merchandise for one very important, earth-shattering reason: Because we can!”
And Kessler Collection, a luxury hotel in the U.S. has also announced that it has started accepting Dogecoin as payment along with other cryptocurrencies.
Undeniably, the adoption is slowly but surely pushing altcoin into the mainstream. Billy Markus was dumbfounded about people’s expectation of dogecoin reaching $1. In his recent interview, he stated:
“People are talking about Dogecoin going to $1 – that would make the ‘market cap’ larger than actual companies that provide services to millions, such as Boeing, Starbucks, American Express, IBM. Does Dogecoin deserve that? That is not something I can comprehend, let alone answer.”
In a post, the dogecoin co-creator stated that he sold all his dogecoins six years ago.
“I don’t currently own any Dogecoin except what has been tipped to me recently. I gave away and/or sold all the crypto I had back in 2015 after being laid off and scared about my dwindling savings at the time, for about enough in total to buy a used Honda Civic.”
Doesn’t seem he regrets it after all. In recent data by Crypto.co, DOGE (dogecoin) is now at $ 0.058142 with a total market cap of $ 7,547,559,917.
With the continued adoption, the bitcoin meme will finally find its worth in the crypto world. It has been slowly becoming an embodiment of real crypto with a real purpose.