THE RISE OF DOGE
If anything ridiculous caught people’s attention in the opposite way it was supposed to, It’s a dogecoin. Dogecoin is a cryptocurrency and a payment system created as a joke by a few software engineers who wanted to make fun of the speculations of cryptocurrencies at the time. But it caught fire, and people thought it’s a legitimate investment. Not to imply any wrongdoing or fraud, they were clear about dogecoin, and even if they weren’t, the logo speaks for itself. But the public opinion about dogecoin wasn’t what it was supposed to be. You can best compare Doge coin’s story as if people took an SNL sketch seriously.
Where did it start?
DogeCoin was programmed by Billy Markus and Jackson Palmer, two software engineers who had excellent jobs at Adobe and IBM who wanted to make fun of the cryptocurrency perception at the time. Dogecoin was released on December 6th, 2013, and uses the face of a Shiba Inu dog from the “Doge” meme as its logo. The coin also derives its name from the same place. But today, the official website of dogecoin promotes it as “Fun and Friendly internet currency” That being said, dogecoin’s origins of the joke have made it harder to get serious as a financial instrument by mainstream media banks institutional investors.
How did it become mainstream?
When it went live, the website got almost a million hits in the first 30 days, and the price of dogecoin increased 300% in the first 3 days from 0.00026 to 0.00095 US dollars. It quickly developed a huge online community of advocates. Because it is on its own blockchain and transactions get validated by miners, people who had lost the bitcoin opportunity thought they could get in early and start mining, which led to the community getting bigger and bigger at a rate of a billion doge coins per day. In 2014, just a year after its release, the daily trading volume of dogecoin briefly surpassed bitcoin and all other cryptocurrencies combined, while the market capitalization remained low. This shows how big of a community it has. In 2018, the market cap got to 2 billion dollars. All of this for a joke coin.
The rise of Dogecoin
In 2020, a social media trend, mostly in TikTok, started to jump up the price to 1 US Dollar. It was beneficial but, of course, not enough. But this was a new beginning for dogecoin. Having started as a joke coin and lacking fundamental backing and credibility, dogecoin lacked a figure or supporter. That was when Reddit users came into play. Dogecoin went viral on Reddit after the TikTok trend, and people started buying and contributing to its mining, all increasing the price jump. But everything went sideways when the world’s richest man at the time, Elon Musk, showed support for dogecoin and tweeted about it, jumping the price up to 0.8 US dollars which is close to their goal. Elon’s support led to a coin base listing. Coinbase is the largest crypto exchange in the US and one of the largest in the world, and their listing of dogecoin increased the price again.
It might shock you to know that the total market cap for dogecoin is 39 billion dollars at the time of writing this article.
Dogecoin’s story can show you public opinion and community support’s power in a decentralized network. It can show you what a joke can become in 8 years if you have the right community and state of mind. The answer is 39 billion dollars which is more than the market cap for a lot of banks. Nobody knows what Billy and Jackson were thinking when starting this network. Everything associated with it, along with its name and history, seems like a joke. But as we can see, people like jokes.
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