5 things you didn’t know about Dogecoin

Kabosu was born in 2008.
Kabosu was born in 2008.

Dogecoin saw its popularity soar with Elon Musk’s tweets. Speculative in nature, however, cryptocurrency was basically just a joke. 

Dogecoin uses the image of a web star

The DOGE token uses the image of a real dog named Kabosu. The animal was born in 2008 and was adopted by a teacher who gave it the name Kabosu in reference to the fruit, because of its plump face.

Kabosu’s first photo was posted on the web in 2010 and was immediately picked up by members of the Reddit community, who made it into a meme. Kabosu’s image was later recovered for the Dogecoin.

Kabosu is not, however, the only dog ​​to have lent his features to the cryptocurrency since several other Shiba Inu have lent their features to the token, this is notably the case of Suki, whose owner, a professional photographer, will shoot many times the portrait.

Its creators left the ship

Jackson Palmer and Billy Markus created Dogecoin in 2013 as a prank. Their idea was simple: to parody Bitcoin with a token that would have no use and would amuse crypto investors. The two left the ship very early and made virtually no profit from the sale of their tokens. Billy Markus explained in an interview that he bought a used Honda Civic with his tokens. Neither of its two creators imagined that Dogecoin would one day reach the top 5 capitalizations.

Jackson Palmer still cannot explain the success of Dogecoin. “ It’s funny to see Elon Musk talk about it, ” explains the Dogecoin co-creator, who still can’t quite grasp the reasons for the buzz. “ Perhaps the Dogecoin is today a barometer of surrealism?” 

Reddit propelled it

Billy Markus was the first to “mine” Dogecoin – the equivalent of $ 10,000 at the time, with his gaming PC. He paid half to Jackson Palmer at the time, and quickly sold his Dogecoin to buy his Honda Civic. The two didn’t expect Dogecoin to become a global phenomenon at the time.

It is on Reddit that Dogecoin will quickly gain popularity. “It got completely out of hand in a matter of minutes,” Billy Markus explains in an interview . Very soon, community members used Dogecoin as a system to thank other users in the community. They created a bot that automatically gave 5 Dogecoin to a stranger every time a comment was liked. Back then, Dogecoin was worth next to nothing. At some point, “almost all Reddit users had Dogecoin.” It was the key to ascension. The adoption, later, by billionaire Elon Musk will catapult cryptocurrency to the top of the charts.

Billy Markus is one of the two co-creators of Dogecoin.
Billy Markus is one of the two co-creators of Dogecoin.

Dogecoin has no limit

If the Doge has met with enormous success with the general public, it is mainly because of his formidable rise. However, this does not respond to any logic. Most cryptocurrencies are deflationary. Unlike Dogecoin, which is an inflationary cryptocurrency. Understand by this that there is no limit to the stock of Dogecoin, which will continue to increase over time. Dogecoin production is gradually declining, however. Many specialists believe that for this reason, Dogecoin could see its price one day decline permanently, unlike Bitcoin, which has a limit of 21 million units. 18.5 million bitcoins are in circulation today. Once all of the currency is “mined”, prices may soar. Like gold, Bitcoin would then become a safe haven.

Whales control the market

In the jargon, the term “whale” defines a huge portfolio, often that of a founder of the cryptocurrency, a billionaire or one of the early-investors. These “whales” have the ability to heavily influence the market by reselling the equivalent of several million euros of cryptocurrency in seconds, creating a wave of panic and massive resale. A technique which is also often used to lower the price and then redeem at its lowest.

The less control whales have over the price of a cryptocurrency, the less likely it is to collapse. It only takes one person to sink the market. In the case of Dogecoin, 12 “whales” own more than 74% of the market capitalization. One of them has the largest wallet, with over 28% of Dogecoin in circulation.

Like other currencies that have no real use, Dogecoin is subject to regular pumps and dumps from these whales. It is typically the type of crypto that can see its price triple in one day, then collapse two days later. More than ever, it is therefore necessary to be very careful when investing in it …

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Written by Shraddha Diwan

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