Why and how did Dogecoin become popular?

Dogecoin

Why and how did Dogecoin become popular?

dogecoin cryptocurrency : The Cryptocurrency market has been on a strong uptrend for several months, and the prices of many major currencies have multiplied. Many of these currencies are growing for a variety of technical or fundamental reasons. But in this article, we will look at the reasons for the growth of digital currency, which may not be as fundamental and technically as any of the major market currencies, but which has many loyal supporters and supporters; Dogecoin.

The Dogecoin Cryptocurrency initially started as a hobby, but at the time of writing it has a market value of about $ 6 billion and has many fans around the world. But how did all this happen? Why did the price of this so-called “MIMCOIN” (comic coin) rise so suddenly and dramatically? Ollie Leech, author of Coindesk website, examines this in an article. To read this article, stay tuned to Cryptocurrency.

Adobe Product Marketing Director Palmer Jackson and software engineer Billy Markus created Dogecoin in late 2013 for fun. The two tried to make the project as funny as possible, focusing on the Japanese dog Shiba Inu, a popular meme or Internet comedy, with phrases such as “I was surprised” and “Very tired.” Says. Memes are special images or videos that, after attracting the attention of users, are quickly published in cyberspace and usually have funny content. Memes are used to ironically and humorously refer to various events.

dogecoin cryptocurrency

The total supply of 100 billion coins was another strange decision of the founders of Dogecoin. According to the founders, the goal of the high number of Dogecoin units is “not to be considered as a digital currency [for investment purposes] and not to be taken too seriously.” Finally, to promote the use of Dogecoin as a payment method and to discourage its holding (Hodling), supply restrictions were lifted and Dogecoin units will be mined indefinitely. Of course, it should not be forgotten that the number of Dogecoin units mined each year is limited.

Dogecoin uses the Lucky Coin code and is actually a fork of this digital currency. Lucky Coin itself is a fork of LightCoin and LightCoin digital currency itself is a branch of Bitcoin. Because Lucky Coin had a random block bonus schedule, miners could receive zero or thousands of free coins to generate new blocks. Palmer and Marcus implemented this feature in Dogecoin, hoping that randomness would annoy Dogecoin miners and prevent them from using the token as a long-term payment solution. By no means did they aim to create a multi-billion dollar digital currency. However, exactly one month after the start of the project, the official Dogecoin website was visited more than a million times and quickly gained significant followers.

dogecoin cryptocurrency

In March 2014, block bonus schedules such as Bitcoin and most digital currencies changed to a fixed value to allow for the continued growth of Dodge Coin users.

Dogecoin did not take itself seriously


Dogecoin officially launched on December 6, 2013 and quickly became popular in the digital currency community. Dodge Quinn was not only a fun digital currency that was easy to extract and could be purchased for a small fee, but its overproduction was new and exciting for those who wanted to practice digital currency freely.

Although China at the time banned bitcoin payment intermediaries, the Dogecoin community gained more than 19,000 Reddit users in two weeks, and the Dogecoin price rose 300%.

dogecoin cryptocurrency

On December 25, 2013, the Dodge Quinn community was shocked by its first major hack called “Dogecoin Christmas”. In this hack, an attacker broke into DogeWallet, a wallet service provider, and stole 11 million Dogecoin. At the time, the Dogecoin was valued at $ 12,000. DogeWallet members announced in their official response:

The source of the attack was a hacker who accessed our file system and changed the send / receive page to send to a static address.

The Dogecoin community’s attempt to repay the victims was called “SaveDogmas” and began two days after the attack. Although not more than a few weeks had passed since the formation of the Shibes Association and their recognition, they came together and donated 15 million Dodges to the SaveDogmas wallet. This generous act became a major feature of the Dogecoin community in later years.

Real application and a supportive community


In 2014, the Dogecoin community was eager to prove that this joke-based digital currency works in the real world. The Dogecoin community began fundraising through Dodge donations to support a wide range of sports and charitable causes. The first of these donations was to raise $ 30,000 within hours to help Jamaica’s sledding team compete in the 2014 Winter Olympics in Sochi, Russia. A number of news outlets, including Business Insider, The Washington Post and The Guardian, started the process and helped spread the project to other parts of the world. By mid-January, Dogecoin (in US dollars) trading volume was rapidly surpassing that of Bitcoin and other digital currencies. Another initiative by the association, Doge4Kids, began in February and raised $ 30,000 to help the 4Paws For Ability charity. The institute provides service dogs for children with special needs.

dogecoin cryptocurrency

In addition, this month a Washington Post article was shared on the Dogecoin channel on Reddit. This article was about an Indian linguist named Shiva Keshavan. Keshavan desperately needed money to participate in the 2014 Sochi 2014 Winter Olympics after the International Olympic Committee suspended his country for corruption. In 24 hours, more than $ 7,500 in Dogecoin was raised on the Reddit community, allowing him to enter the competition.

On March 11, 2014, the Dogecoin community donated $ 50,000 to support a charity project to build a water treatment plant in Kenya. Generous donations also allowed a US nonprofit to build two new water wells in the area.

dogecoin cryptocurrency

On March 17, 2014, Josh Wise, a driver for the National Association of Stoke Car Racing (NASCAR), was trying to find a sponsor to compete in the Talladega Superspeedway. In this regard, a post was posted on the Dogecoin channel. Once again, the community came together to donate their Dogecoin for another good use and to be the top sponsor of Wise Cars. In total, more than 67 million Dogecoin worth $ 55,000 was donated. Named “# 98 Moonrocket”, the car was decorated with Meem Shiba Ino. This was the first time the project had been physically promoted at an important sporting event.

Dogecoin
Josh Wise cars with Dogecoin ads

2014 saw the creation of another project called “DogeTipBot”. A reward service that communicates with Reddit, allowing users to send Dogecoin micro-transactions to each other to publish their favorite content. The service was instrumental in encouraging the early use of Dogecoin and played a major role in exposing users who did not use digital currency to digital tokens. By August, DogeTipBot had become the digital currency industry’s top rewards service with more than 70,000 registrations.

In 2017, DogeTipBot creator Josh Mohland filed for bankruptcy at Reddit, saying it had shut down the service and wiped out all Dogecoins held on the platform to cover its operating costs and debt.

Celebrities supporting Dogecoin

Another factor that has contributed to Dogecoin’s global popularity in recent years is the growing list of influential celebrities who have repeatedly stated their support for the digital currency on social media. Netflix “Tiger King” star Carole Baskin, Gene Simmons, Case lead singer Mark Kuban, billionaire, Kai Greene, former professional bodybuilder and Snoop Dogg ) And American rappers Lil Yachty are on the list.

The most notable Dogecoin celebrity is none other than Tesla CEO and the world’s richest man, Elon musk.

Celebrity hotspots support Dogecoin and Elon musk posted a picture on Twitter
Celebrity hotspots support Dogecoin and Elon musk posted a picture on Twitter

Mask first contacted Dodge in September 2018. At the time, he enlisted the help of Dogecoin creator Jackson Palmer to combat fraudulent robots. These robots disguised themselves as masks and stole people’s digital currency. Seven months later, after being elected CEO of Dogecoin in the April Fools’ Day poll, Musk said:

Dogecoin could be my favorite digital currency. Coin is so interesting!

In March 2020, Mask tweeted the following, and four months later shared a Dogecoin meme with the caption “Inevitable” to 46.9 million followers.

Dogs ‌ leave… they have the best coin.

In late 2020, Musk continued to tweet about Dodge. He pushed prices up to 25% on December 20 after tweeting “One word: Doge.” Musk even joked that Dogecoin could one day become the official currency of Mars.

During the WallStreetBets stock market frenzy that engulfed traditional financial markets in January 2021, Mask raised the price of Dogecoin by 800% after tweeting a picture of a dog on the cover of Doge magazine. The Dogecoin price rose to $ 0.08 with this increase and reached a new record.

Concluding remarks

How did Dogecoin become so popular? In short, the selfless community, the humorous roots of the project, and its usefulness in the real world seem to have contributed the most to Dogecoin’s early success in the digital currency market. Over the past few years, however, Dogecoin has somehow become the digital currency avatar for Meem culture. Online communities and online personalities such as Elon Musk have also strengthened it. As the influence of this culture increases, so does the value of Dogecoin. Dogecoin grew so large and difficult to control that its makers never intended it.

Why and how did Dogecoin become popular?

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