Reports & Analysis

Why and how did Dogecoin become popular?


The digital currency 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 digital currency 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 “Meem Quinn” (comic coin) rise so suddenly and dramatically? Ollie Leech, author of the CoinDesk website, at an article Has investigated this issue. To read this article, stay tuned to Digital Currency.

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.

Why and how did Dogecoin become popular?
An example of Shiba Ino’s internet memes (the dog seen in the Dogecoin logo) – from Instagram Digital Currency

The total supply of 100 billion coins was another strange decision of the founders of Dogecoin. According to the founders, the goal of the large number of Dogecoin units is to “serve as a digital currency.” [به‌منظور سرمایه‌گذاری] “It should not be considered and it should not be taken too seriously.” Eventually, to promote the use of Dogecoin as a payment method and discourage Hodling, supply restrictions were lifted and Dogecoin units will be extracted indefinitely. Of course, it should not be forgotten that the number of Dogecoin units extracted each year is limited.

Dogecoin has used the Lucky Coin code and is in fact forked from this digital currency. Lucky Coin itself is a fork of LightCoin and LightCoin digital currency itself is a branch of Bitcoin. Because LuckyQueen 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 coincidence 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, Dogecoin’s official website was visited more than a million times and quickly gained a significant following.

In March 2014, block rewards timing 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 himself seriously

Dogecoin officially launched on December 6, 2013 and quickly became popular in the digital currency community. Dogecoin 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 currencies freely.

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

On December 25, 2013, the Dogecoin community was shocked by its first major hack called “Dogecoin Christmas”. In this hack, an attacker broke into Dodge Wallet, a wallet service provider, and stole 11 million Dodge Quinns. At the time, the Dodge Quinns were worth $ 12,000. Dodge Walt 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 effort 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 Dogecoin society 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 Society began fundraising through Dodge donations to support a wide range of sporting 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, Dodge Coin (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.

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 Dogecoin was raised at the Reddit Association, 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.

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 in Reddit. Once again, the community came together to donate their Dodge Quinns for another good use and to be the top sponsor of Wise Cars. In total, more than 67 million Dodge Quinns were donated worth $ 55,000. 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.

How did Dogecoin become popular?
Josh Wise cars with bitcoin 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 the 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 destroyed all Dodge coins stored on the platform to cover its operating costs and debt.

Celebrities supporting Dogecoin

Another factor that has made a significant contribution 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 celebrity to influence Dogecoin is the CEO of Tesla and the richest man in the world, Elon Musk.

How did Dogecoin become popular?
Celebrity hotspots support Dogecoin and Elon Musk posted a photo on Twitter

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

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

In March 2020, Musk 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. After he tweeted the phrase “One word: Dodge”, he caused prices to rise to 25% on December 20. 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, Musk raised the Dogecoin price by 800% after tweeting a picture of a dog on the cover of Dogue magazine. The price of Dogecoin reached $ 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 has increased, so has the value of the Dogecoin. The Dogecoin grew and became so difficult to control that its creators never intended it.

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