There have been numerous cryptocurrencies that have appeared in the market and then vanished after a few months. Nonetheless, some of them stick around and bring more seriousness to the table from time to time. Dogecoin is one such example, from its humble beginnings to where it is now.
Dogecoin is most likely one of the most well-known meme coins. Cryptocurrency has even made it into mainstream media several times. The token is easily identified by its Shiba Inu dog from the popular old meme Doge. In this article, we will look at the cryptocurrency, its origins, where it is now, and what the future may hold.
The History of Dogecoin
Dogecoin’s humble beginnings can be traced back to when two software engineers decided to experiment with blockchain technology. They devised a payment system as a parody of the volatile cryptocurrencies of the time.
Both engineers, Billy Markus, and Jackson Palmer, got to work on developing the market’s new meme coin. One interesting thing both of them noticed right away was that, despite its satirical nature, many people mistook it for a real investment. The token was officially launched on December 6, 2013, and it quickly gained a devoted following. Later, in an interview, both engineers admitted that the entire reason they launched the cryptocurrency was to make fun of Bitcoin (BTC).
It didn’t take long for the coin to start blowing up. The official website of the token reached millions of users in a matter of months. Furthermore, the coin’s price reached all-time highs. It immediately rose 300% in less than a month after its launch. This also comes at a time when Bitcoin was losing money and many other cryptocurrencies in the market were struggling.
However, the coin’s price dropped a few days later, owing to the news at the time and other mining pools exploiting the small amount of power required to mine Dogecoin. This simply lowered the value of the tokens.
A month later, the token’s trading volume briefly surpassed Bitcoin. In addition, the first major Dogecoin theft occurred when millions of coins were stolen during a hack. This occurred on the Dogewallet online cryptocurrency digital wallet platform. This hacking event generated a lot of buzz about the token on social media. The coin’s community launched a campaign to help donate coins to those who had misplaced their tokens.
Old Dogecoin Website – Source: Management Library
A New Era for Dogecoin
The year 2015 was a watershed moment for the coin. This is due to the decision of co-founder Jackson Palmer to leave the cryptocurrency community. He stated that he had no intention of ever returning.
This is because, despite the fact that cryptocurrency was initially conceived as a movement to provide an alternative to money, he believes that it only benefits the wealthy. The system is designed to enrich the wealthy and so on. Billy Markus, Palmer’s colleague, and co-founder, also stated that his viewpoint is quite valid.
The cryptocurrency market as a whole experienced a massive bubble in 2017 and 2018. This occurred as news outlets around the world began displaying Bitcoin. This gradually caused the coin’s price to rise to new heights at the time, and Dogecoin capitalized on this and reached its peak.
The bullish movement of Bitcoin piqued the interest of many new people in the world of decentralized finance. As a result, many of them came across the well-known meme Doge and the coin that was named after it. Dogecoin’s price increased to a high of US$0.017. This meant that the total market capitalization was getting close to $2 billion.
The Subsequent Boom and Fall
The year 2020 was crucial for the token. This was due to the Covid Pandemic, which affected a large number of people. This meant they were stuck at home while many people learned about cryptocurrencies and Non-Fungible Tokens (NFTs).
Furthermore, there was a massive Dogecoin trend on TikTok and other social media platforms. The entire purpose of it was to get the cryptocurrency to $1. This would have been a huge accomplishment, but it came close but did not reach the desired price.
The following year, SpaceX announced a rideshare mission to the moon that was to be fully funded by Doecoin. This would have made it the first space mission to be funded entirely through blockchain technology.
Elon Musk, the founder of SpaceX and a well-known entrepreneur, confirmed the existence of Dogecoin on Twitter. During that year, Vitalik Buterin, co-founder of Ethereum, was added to Dogecoin’s board of notable advisors.
In the first 24 hours of the year 2021, Dogecoin increased by more than 800%. This is as a result of the massive hype surrounding it on Reddit and among Elon Musk fans. Furthermore, this comes at a time when there is a huge meme going around for the GameStop squeeze.
Mark Cuban, the owner of the Dallas Mavericks, made headlines in March 2021 when he announced that his NBA team would accept Dogecoin. This was used to purchase tickets and merchandise. Surprisingly, Cuban proudly declared that his team had ascended to the position of leading Dogecoin merchant in less than 48 hours. They had completed an impressive tally of 20,000 transactions. This was also big news at the time, and everyone on social media was talking about it.
Dogecoin All-Time Graph
Recent Times
The crypto industry saw a spike in Dogecoin and other cryptocurrencies in April 2021. This increase was spurred in part by Coinbase’s much-anticipated direct listing, a major crypto exchange. Despite the fact that Dogecoin was not initially traded on Coinbase, its popularity skyrocketed.
During this time, the price of Dogecoin was volatile. On April 14, it reached $0.10, and two days later, on April 16, it rocketed to an all-time high of $0.45, representing a spectacular 400% rise in just one week. During this increase in trading, an unprecedented $70 billion in Dogecoin changed hands in a single day.
The market capitalization of the cryptocurrency was not to be forgotten, as it surpassed an astonishing $50 billion, sealing its status as the fifth most valuable cryptocurrency at the moment. Surprisingly, Dogecoin has increased by over 7,000% since the beginning of the year, astounded many observers.
However, such a quick surge aroused questions. Due to high demand, the excitement surrounding Dogecoin contributed to a disturbance in the cryptocurrency trading system of Robinhood, a prominent electronic trading platform. This occurrence has analysts concerned about a possible speculative bubble in the cryptocurrency market.
In April 2023, Dogecoin was once again making headlines. This time, the price hike was linked to Elon Musk’s mischievous action. This is because he momentarily modified the Twitter app’s logo to a Doge logo. However, prominence brings scrutiny, and by June 2023, Musk was facing accusations of insider trading from investors as a result of a number of attention-grabbing activities, including the logo change. Dogecoin’s journey has been nothing short of spectacular, beginning with its humble origins as a meme-based cryptocurrency.
Dogecoin Use-Cases
Most meme currencies have no practical use cases aside from being an investing instrument. However, due to its widespread popularity, Dogecoin is traded against both fiat currency and other cryptocurrencies. It is also supported by a large number of reputable cryptocurrency exchanges.
As a result, the token is highly handy for day-to-day activities. One of the biggest drawbacks of the token is its instability. You have no idea where the price of the token is headed, which makes it rather untrustworthy.
Nonetheless, the token is utilized for a variety of purposes. One of the most common uses for the token is online tipping. This is where social media users commend other users’ interesting stuff. It has also been found to be employed in the attempted property sale and gambling businesses.
Dogetipbot was a transaction service that was used on prominent websites such as Twitch and Reddit. It enabled users to send Dogecoins to one another using the service. This was shortly taken down once the creator went bankrupt.
The Technology Behind Dogecoin
Dogecoin’s technology is not as easy as you may imagine. This is primarily due to the fact that there were not many easy options for people to produce cryptocurrencies at the time of its introduction.
The token’s technology is closely related to Decentralized Finance (DeFi) and smart contracts. You should keep in mind that dogecoin cannot interact with standard contracts because it operates on its own chain. The coins can be “wrapped” in order to be locked into an interoperable state with a contract until it is later released. This has been accomplished by The Ren Project, which has enabled Dogecoin to operate on the Ethereum network.
The coin can connect to the DeFi network by running on the Ethereum blockchain. The Ethereum blockchain network is used by the majority of DeFi coins. Decentralized applications (“dApps”) are used by DeFi connected coins. These are used to conduct transactions and trade on decentralized exchanges (DExs).
Noteworthy Fundraises
Although few people are aware of it, there have been some huge fundraises behind the cryptocurrency. The Dogecoin community is extremely enthusiastic about the token, and they work tirelessly to ensure that it receives the attention it deserves.
The first occurred during the 2014 Winter Olympics when the dogecoin community hoped to collect approximately $50,000 for the Jamaican Bobsled Team. This is because the squad qualified but did not have the funds to travel there. They rapidly accumulated $36,000 in Dogecoin, which was given, and the Dogecoin to Bitcoin conversion rate increased by 50%. Shiva Keshavan, a second Sochi athlete, was also supported by the Dogecoin community.
Doge4Water
The Winter Olympics campaign and smaller charity fundraising accomplishments inspired this fundraiser. The Dogecoin Foundation began collecting donations to fund the construction of a well in Kenya. There was a severe water deficit in this area. They planned to raise $30,000 in Dogecoin at the moment. They meet their goal thanks to thousands of donors, including a strange one who anonymously donates more than $10,000 in Dogecoin. This also resulted in a lot of news outlets discussing the meme coin.
NASCAR
Later, the Dogecoin community began an incredible adventure into the realm of NASCAR racing. With their usual passion, they raised around $55,000 to sponsor NASCAR driver Josh Wise and his No. 98 vehicle. This event marked the start of a one-of-a-kind collaboration between digital currency and high-speed racing.
The Dogecoin-sponsored vehicle, colloquially known as the “Moonrocket,” raced onto the course at Talladega Superspeedway for the Aaron’s 499. The automobile, which was painted in the trademark Dogecoin and Reddit colors, drew the attention of racing analysts and fans alike. Josh Wise expertly managed the race, avoiding many collisions and finishing in twentieth place. The audience watched a historic moment when Dogecoin and its crowdfunding success were discussed on live television.
The Dogecoin community continued to make waves in the racing scene, powered by their dedication. They rallied once more in 2015, driving Josh Wise to victory in an online fan poll that earned him a seat in the coveted Sprint All-Star Race. Despite ranking fifteenth, Wise’s accomplishment demonstrated the strength of a unified community.
The Dogecoin Sponsored NASCAR Car – Source: Reddit
The link between Dogecoin and racing was not restricted to the racetrack. During the Coca-Cola 600 race, Wise proudly sported a Dogecoin/Reddit.com helmet to show the community’s support. His appreciation was palpable as he declared plans to race the Dogecoin vehicle in other races, giving back to the community that had rallied around him.
By 2021, Dogecoin’s presence in NASCAR has not diminished. Dogecoin sponsored the No. 99 vehicle at the Alsco Uniforms 300 in Las Vegas in collaboration with B. J. McLeod Motorsports. When Stefan Parsons, the car’s driver, had gasoline line troubles similar to the original Dogecoin-sponsored car’s owner, Phil Parsons, the relationship came full circle.
The Criticism Behind Dogecoin
Dogecoin began as a humorous idea, making it the first “meme coin.” However, its lighthearted character has made it difficult for serious people to take it seriously. It is difficult for financial experts and the media to discuss. In the past, some people utilized Dogecoin for frauds, which produced issues. Some compare it to a game in which early players strive to entice others to join, raising the fee and making the early players wealthy.
Unlike Bitcoin, which has a cap of 21 million coins, Dogecoin has no such restriction. Instead, fresh coins are produced on a regular basis, with approximately 10,000 coins produced each time. These new coins circulate and accumulate over time. 5 billion new Dogecoins are created each year. This process is repeated in order to keep the coin in circulation.
Dogecoin’s unique feature is its “meme” origin. Memes are amusing images that people exchange on the internet. Dogecoin began as a joke based on a meme. This amusing beginning is what distinguishes it, but it also makes it difficult for some people to believe in it.
So, Dogecoin is a bit like a game, with users attempting to entice others to participate in order to drive up the price. It does not have a limit like other currencies, and new coins are constantly being created. But keep in mind that, while it began as a joke, Dogecoin is now a real item that people use and discuss.
The Positives Behind Dogecoin
Dogecoin, a cryptocurrency that began as a joke, has evolved into a serious rival in the realm of digital money. Despite the fact that its price fluctuates dramatically, this rollercoaster experience has several positive aspects.
Consider how rapidly you could profit from little fluctuations in the price of Dogecoin. Some investors use tactics such as day trading or scalping to accomplish this. Profits are made by taking advantage of these quick, short price movements. It’s like trying to catch the right moment.
Dogecoin was the world’s tenth-largest cryptocurrency in September 2021. It was worth a whopping $26 billion. There were larger cryptocurrencies, such as Bitcoin and Ethereum, but Dogecoin remained in the top ten.
Dogecoin, a cryptocurrency that began as a joke, has evolved into a serious rival in the realm of digital money. Despite the fact that its price fluctuates dramatically, this rollercoaster experience has several positive aspects.
Consider how rapidly you could profit from little fluctuations in the price of Dogecoin. Some investors use tactics such as day trading or scalping to accomplish this. Profits are made by taking advantage of these quick, short price movements. It’s like trying to catch the right moment.
Dogecoin was the world’s tenth-largest cryptocurrency in September 2021. It was worth a whopping $26 billion. There were larger cryptocurrencies, such as Bitcoin and Ethereum, but Dogecoin remained in the top ten.
Mark Cuban, for example, stated something fascinating about Dogecoin. He mentioned how it’s similar to “deterministic inflation.” That just indicates that the method for producing more Dogecoin is set and known. There is no mystery here. This might make it helpful for purchasing items, similar to a traditional currency.
Elon Musk and Dogecoin
Elon Musk and Dogecoin have a long history together since Elon routinely express his views on Dogecoin on Twitter (X). This has prompted some to believe that he does this to influence the market. Nowadays, if Elon tweets something that roughly resembles Dogeocoin, the token’s price will fluctuate.
Because cryptocurrencies are not regulated equities, these transactions are permissible. A large number of people have opposed Elons’ advocacy of Dogecoin. Jackson Palmer is one such person who was dissatisfied with Elon’s tweets.
One good example is when Elon Musk simply tweeted the term “Doge” and the price of the token immediately increased by 20%. Following this, he continued to Tweet about the coin, and its value skyrocketed. During Musk’s Saturday Night Live appearance, Dogecoin dropped by up to 29.5%. In 2021, the price of Dogecoin increased by 11% after Musk tweeted a Doge-related meme.
Dozen of other tweets like this one demonstrate that the token is very close to Elon Musk. Almost any modification he makes that is related to Doge causes the token’s price to alter. This only adds to the allegation that Dogecoin is insufficiently stable to be utilized for anything else.
Elon Musk Tweets
The most recent event involving Dogecoin and Elon Musk occurred in April when Twitter’s bird logo was changed with a picture of the Doge meme for desktop users. As expected, the price of Doecoins increased. The reason for the modification was not stated. Some believe it was a late April Fools’ joke or an attempt to smear investors over the Dogecoin litigation.
Conclusion
Dogecoin is a symbol of simplicity and community in the world of cryptocurrencies, where complexity typically reigns supreme. This digital currency, which began as a fun joke, swiftly outgrew its origins, grabbing the hearts of fans all around the world. Its journey, which was marked by both hardships and victories, exemplifies the power of a united community.
The Dogecoin tale tells us that, even in the complicated world of money and technology, there is room for levity. The Shiba Inu dog that graces its logo has become a symbol of tenacity and determination, not just of a meme. As its value fluctuates and its future remains uncertain, one thing is certain: the significance of Dogecoin extends beyond its financial performance. It serves as a reminder that even the most unexpected ideas can have a long-lasting impact on the world.
Takeaways
- The History of DogecoinDogecoin’s humble beginnings can be traced back to when two software engineers decided to experiment with blockchain technology.
- The token was officially launched on December 6, 2013, and it quickly gained a devoted following and a community behind it full of passion.
- The 2017 crypto bubble, gradually caused the coin’s price to rise to new heights at the time, and Dogecoin capitalized on this and reached its peak.
- Mark Cuban, the owner of the Dallas Mavericks, made headlines in March 2021 when he announced that his NBA team would accept Dogecoin.
- The market capitalization of the cryptocurrency grew as it surpassed an astonishing $50 billion, sealing its status as the fifth most valuable cryptocurrency at the moment.
- As its value fluctuates and its future remains uncertain, one thing is certain: the significance of Dogecoin extends beyond its financial performance.
