Cryptocurrency is on the rise and 2021 is expected to be another big year in the growth of this online phenomenon.
Dogecoin might have started as a meme but its social popularity among the influential has gained it a spot among top cryptocurrencies.
Today, this underdog has gone from what was intended as a joke to becoming the 10th most valuable cryptocurrency.
All About Dogecoin
Dogecoin was started in 2013 and is considered one of the original altcoins. It is nothing fancy, with truly little innovation and mainly uses the original source code created for Bitcoin.
There are a few small modifications allowing for faster transactions and the removal of a supply cap. But what truly makes Dogecoin stand out is how it is viewed from a cultural standpoint.
This altcoin was created by the software engineers Billy Markus and Jackson Palmer, but the latter walked away from the project. The coin was branded with the iconic Doge dog meme as a joke but also to distance it from Bitcoin.
It is quite humorous as Dogecoin managed to outlast almost all the other early altcoins created. Only a year after it was created, Dogecoin holders sponsored the Jamaican Bobsled Team as well as a NASCAR driver.
The Irony of the Meme Coin
Dogecoin was never intended to have a serious run. Instead, this altcoin was created as a joke to poke fun at cryptocurrencies.
Nobody would have predicted nearly a decade ago that Dogecoin would turn around to become a big hit. For many, Dogecoin is not a financial asset but is rather seen as a cultural product. Because owning Dogecoin does not make you a ‘serious investor’; instead, it allows you to participate in pop culture.
Primarily Dogecoin has been purchased for various reasons including the opportunity to be part of a community, the amusement behind it, and to have some fun.
Early in February 2021, the cryptocurrency saw a price rise of 36% after a few meme-based tweets exchanged between big names joined the Doge Squad. Elon Musk tweeted, claiming Dogecoin is the currency of Earth, with Snoop Dog, and Kiss lead singer Gene Simmons posting memes, poking fun, and including Dogecoin.
In the past few weeks, there has been plenty of activity and growth surrounding Doge with an 800% gain just a few days after WallStreetBets investors pushed the prices to almost $0.08.
Social Manipulation Playing its Part?
Social media is an extremely useful tool in gaining traction and manipulating markets. This has quickly been revealed through a few simple tweets and strategic social media moves from Tesla CEO, Elon Musk.
Musk is an influential name in the industry, and even a single worded bio on his verified accounts can change the game, especially in cryptocurrency.
This, in turn, has led to industry professionals seeking help from regulatory bodies to step in. Many believe such an influence on the market can be dangerous and have accused Musk of using his power for his own benefit.
At the end of the day, the facts remain the same, cryptocurrency is on the rise and influential people direct the focus towards which coins are considered a must.
Dogecoin is a clear favourite, dubbed the ‘currency of the people’ rising more in value thanks to social and media attention.