In 2013, Australian entrepreneur Jackson Palmer and software programmer Billy Markus invented Dogecoin, a satirical cryptocurrency. Palmer said in an interview that the project was inspired by two online tabs he had open at the time: one with a viral internet meme of a Japanese Shiba Inu “doge,” and the other with a list of recently introduced bitcoin ventures to the market.
With the major hedge hunter’s investment and the business and space tycoon interest in this, the coin has gained much popularity and is consistently increasing.
Dogecoin is the protagonist of a cryptocurrency drama that no one could have foreseen previously. As the fame of the meme cryptocurrency soared, its market value decreased in the last couple of weeks like a candle flame in the wind. It reached an inconceivable high before plunging to the ground.
The rise was fuelled right before April 20, a day that is celebrated as Doge Day. Fans of the cryptocurrency invested in it in the masses and skyrocketed its price to a record high. Dogecoin was hailed on various social media platforms and, of course, had the backing of tech icon Elon Musk.
The digital currency rapidly erupted on Reddit, creating a market value of $8 million at the moment. It gained popularity as a result of the online practice of “tipping,” which was a method of rewarding individuals for doing “good actions” such as sharing an idea or making a platform more accessible.
Despite its strong presence on Reddit, few people took Dogecoin seriously, and its applications were restricted. It is referred to as a “meme coin.” Until Elon Musk, the CEO of Tesla, stated this year that he would place a Dogecoin on the moon. Some speculated that it was an April Fool’s joke, but Musk has since tweeted several cryptic messages about the cryptocurrency.
While the other currencies were having a tough supply chain, the crypto market was on a big boom, plummeting every day. Dogecoin did not get any hit with their prices. They have been improving consistently with a surging rate. The Crypto market is less affected by any pandemic disturbance because it is least dissociated by the real happening as it is run on the digital platforms. The only thing that may affect the rate of any currency is the online community and their stake that affects its functioning.
Following his appearance on SNL, however, the value of Dogecoin dropped sharply. The value of Dogecoin, which became the fourth largest cryptocurrency in terms of market value following its spike on Saturday, dropped to as low as 51.5 cents during Musk’s performance on the show. The dogecoin had to suffer the remark of Elon Musk and its value came plunging.
The major investors in a particular stock play a big role in its functioning. Billionaire Elon Musk posted a meme on July 25 featuring two famous characters from the Matrix franchise – Neo, the protagonist played by Hollywood actor Keanu Reeves and Morpheus with the message ‘Dogecoin is money’It helped the price rise instantly by 20 cents.
Despite its absurd name and image, many cryptocurrency traders have taken Dogecoin seriously in recent months, increasing its market capitalization to $30 billion (at the time this article was written). While this may seem insignificant in comparison to the $930 billion in bitcoin in circulation, Dogecoin’s price volatility in recent months has set it apart from its peers.
Dogecoin like the other cryptocurrency has been facing the tyrannies of a speculative market and it will continue to run so because the system and mechanism on which it runs are quite dusky. The only thing to be done is to leave the investments for some time and do not panickily buy and sell but check-up with them regularly.
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