Dogecoin. You’ve heard of it, heard your friends talking about the bountiful profits they’ve experienced by investing in it, and yet there’s still so much mystery surrounding what dogecoin is and isn’t, how it came to be, and what it means for the future of the intersection between tech and currency — or, in this case, cryptocurrency.
In fact, we’ve even touched on dogecoin in previous blog entries when discussing the evolution of cryptocurrency and how this new method of engaging in commerce could impact the global economy. With that said, we haven’t taken a moment to slow down and truly examine the origin of dogecoin, the vision of its primary champion, and the real-world impacts this brand of crypto is having on market forces across the globe.
With this mind, let’s take a peek inside the dogecoin wallet to better track how dogecoin rose to its current state of prominence in the crypto space and what the future might hold for dogecoin and those who invest in it.
The Beginnings of Dogecoin
Would it surprise you to learn Dogecoin started as a joke? As with other disruptive forces in the technology world, particularly in social media (we’re looking at you, Facebook), Dogecoin began essentially as nothing more than a lark.
Founded 8 years ago by IBM software engineers Billy Markus and Jackson Palmer as a parody of the chatter around the rise of cryptocurrency, Dogecoin was conceived as a direct, spoof-competitor to Bitcoin — the Dogecoin logo is the Shiba Inu, which is the most popular dog breed in Japan and a rising breed in the United States. However, in contrast with Bitcoin, Markus and Palmer envisioned a more user-friendly version of crypto with a broader reach.
But what started as a light-hearted passion project by two IBM employees quickly bloomed into a true disruptor in the crypto landscape. In part buoyed by their programming and web developed acumen, Dogecoin quickly gained something of a cult following, and on December 19, 2013 (not long after its official launch), Dogecoin experienced a 300 percent increase in value in a 72-hour window.
With some traction among both the crypto and programming community, Dogecoin continued a moderate, paced increase in both popularity and value. Dogecoin’s value and inroads in the crypto circle saw a massive boost in 2019 when Mark Cuban, owner of the NBA’s Dallas Mavericks, publicly endorsed Dogecoin when announced that Mavericks tickets could be purchased using the platform.
A second boom in popularity and value took place in both 2020 and 2021 when entrepreneur Elon Musk used the message board platform Reddit and appearance on Saturday Night Live to essentially champion and promote the platform as not only an important cryptocurrency, but a true game-changer in how corporations and countries conceive of their economies.
What’s further cemented Dogecoin as a formidable player in the crypto space is the advent of the Dogecoin Wallet, which is a digitally hosted storage system with an accompanying app that functions as a real-world wallet. This integration provides safe and secure housing for user’s Dogecoins, along with dynamic internal dashboards that track your investment, market fluctuations, and usage of your Dogecoin inventory.
The Dogecoin Champion
As we touched on earlier, billionaire Elon Musk did not invent Dogecoin (though that is a common misconception), but he did put the platform on his proverbial shoulders and help accelerate the proliferation and fame of the company. This act that threw gas on the slowly smoldering fire that was Dogecoin’s beginning was a seemingly innocuous Tweet that Musk published in 2013 that simply read: “Doge.”
Given Musk’s massive social footprint, not to mention his influence in the tech world, this tweet was quickly shared again and again, fueling an inferno of interest in the young start-up company. Musk continued to fan the flames by tweeting about the crypto platform in the following hours and days.
According to an article in Prospect, Dogecoin experienced an unprecedented surge in interest during the 72 hours following Musk’s barrage of tweets.
“Over the next two days, Musk went on a Dogecoin-related tweeting spree. He posted a Lion King–inspired meme of him lifting the Shiba Inu doge, the cryptocurrency’s de facto logo and mascot, above his head. He proclaimed, “Dogecoin is the people’s crypto,” and committed to a life lived with “no highs, no lows, only Doge.” The result was a one-day 50 percent spike in the value of the coin.”
Every disruptive innovation needs someone to champion it, whether it’s a football coach guiding a ragtag group of players to a championship, or a Sean Parker influencing the way Mark Zuckerberg thought about this digital connection platform. Musk became that champion for Dogecoin, exposing the platform to a wider audience with a couple clicks of a mouse.
Cryptocurrency and Reddit
You can’t tell the full story of Dogecoin without discussing the powerful, comprehensive online message board platform of Reddit.
The first crossing between Dogecoin and Reddit came with the sudden influx, interest, and surging stock price of video game retailer GameStop last year. Designed as a scheme to manipulate the stock market price and value of GameStop, a group of informed, savvy investors and tech buffs posted information on social media forums such as Reddit encouraging followers to buy shares in the hopes this massive wave of buying would drive the price of certain stocks up. The motives behind this ranged from making personal profit to a desire to squeeze the short-sighted nature of hedge funds who many in this savvy group of investors felt were a scourge on the American economic landscape.
The result? According to an article in Trade News, it was bordering on revolutionary:
“Prompted by the information posted on social media, retail investors began buying these so-called “meme-stocks” including GameStop, AMC Entertainment, Blackberry, and Nokia. The activity sent their prices soaring, with the GameStop share prices climbing over 1000% in just two weeks.”
Hard on the heels of this moment was another Reddit-based instance that further propelled Dogecoin into a new stratosphere. Following the GameStop incident, another group of savvy Reddit members started a message thread comparing Dogecoin itself to GameStop in another ploy to stoke investment in the platform. As with the GameStop tidal wave, Dogecoin itself experienced massive increases in value and interest as investors and players in the cryptocurrency scene flocked to purchase the digital coins.
An article in CNBC published during this massive spike chronicled the 24-hour cycle in which this took place:
“The price of dogecoin stood at $0.057410 at 10 a.m. ET Friday, according to Coingecko, up around 150% on the day. It had eased from $0.070755 late Thursday when it had seen a surge of 800% in just 24 hours. The virtual currency had earlier hit an intraday high of $0.072330.”
Cryptocurrency and the community that revolves around this new model of paying for goods and services will likely have detractors or doubters in the coming months and years. However, it’s almost impossible to discount the impact a crypto platform like Dogecoin had on real-world companies in the real-world economic landscape which we all participate in, and with the technology that drives these platforms advancing every day, it’s difficult to imagine crypto platforms like Dogecoin fading back into the fringes from which they sprung.
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