In the last decade, the cryptocurrency market has rapidly grown because many people are willing to invest in the market. Although the idea existed from the late 1980s, most people came to know about it in 2009 when Bitcoin was launched. Since then, more than 500 cryptocurrencies have been born. Most of these currencies are based on the Bitcoin idea. In this article, we will focus on Dogecoin, one of the leading cryptocurrencies in the market.
Inspiration behind Doge
We want to focus on the history of Dogecoins because it’s an interesting and unique journey. For example, can you believe it was founded by two strangers from social media? Now I want you to note the influence of social media platforms because it will be critical in the history and rise of the Doge.
In 2013 there was a dog meme that went viral. Different people started making jokes and expressing themselves in different forms. Creativity was highly invested for more fun. The memes featured diets, exploration, naps, among many others, intending to trend and be unique. A software engineer by the name of Jackson Palmer jokily tweeted, “Investing in Dogecoins, pretty sure it’s the next big thing.”
During this time, Jackson was working at Adobe Systems in Sydney, Australia, although he was closely following the cryptocurrency market. Several people retweeted and advised him to go to pursue his idea. After a week or so, he purchased the domain dogecoin.com. He was doing all this for fun. That’s why the currency is commonly known as the ‘joke currency.’
When all this is happening, in Portland, there is a programmer by the name of Billy Markus working very hard to develop his own cryptocurrency, but there is very little to show. Billy comes across the domain dogecoin.com before it goes live. He immediately reaches out to Jackson and shows his interest. Although they were two strangers who had never met within less than a week, Palmer responded, and they formed a partnership.
Immediately after the partnership was formed, Palmer and Billy started working on the project. The main aim of Doge was to create something different because they didn’t intend to compete with Bitcoin. By this time, Bitcoin was getting positive feedback, and people were investing heavily. One of the things that make Doge standout is unlike Bitcoin, there is no limit to the number of coins produced by the system.
Dogecoins was officially launched on December 6, 2013. Unlike some cryptocurrencies we have in the market, Doge started on a high note. In less than one month after it was launched, more than one million people visited the site. Initially, the site wanted to produce 100 billion Dogecoins, but it was later confirmed to produce unlimited coins. Although several people were willing to invest in Doge from the word go, Palmer thought that they needed to invest in good marketing for the company to grow rapidly.
As we all know, for your business to grow, good marketing strategies should be one of your key priorities. Doge was already trending on Reddit and other major social media platforms within the second week of operation. During this time, the currency was the second most tipped on the internet. By tipping, I mean people were rewarded for doing good deeds, which included sharing the platform and making the site known to friends and family.
Reddit platform highly contributed to the growth of the currency because, within a short time, the market value rose to more than $8 million. Apart from extensive marketing, Doge was easily accepted in the market because people were already familiar with cryptocurrencies. Remember, Bitcoin struggled to penetrate the market because many people were naive, and they knew very little about cryptocurrencies. It was challenging to convince people to invest because cryptocurrencies were mostly associated with fraud and pyramid schemes.
Dogecoins rises against Bitcoin
The giant cryptocurrency Bitcoin was doing well before it faced a major drawback on December 19, 2013. Some government agencies like the Chinese introduced new laws forbidding Chinese banks from investing the Chinese currency in the Bitcoin economy. They gave all sorts of negative reasons, which made several people withdraw their investments. Most of these investors went ahead to invest in other alternative currencies, one of them being Dogecoins.
Most of the investors ended up at Doge because, during this time, it was the talk of the town. Within three days, Dogecoins reported a 300% rise in value. But there was a problem. Due to the high demand for the coin, there was a -80% loss. Within a short time allocated in blockchain, the computing system could not handle the pressure, so the site experienced its first crash.
Later in 2014, a difficult algorithm was introduced to the Doge site to prevent multipool. The new algorithm was known as Digishield. A fixed reward per block was also introduced at almost the same time. These implementations came with consequences. One of the major consequences was a reduction in coins. More profits were realized because with the new algorithm, multipool entering the Dogecoins would leave due to high difficulty.
As the cryptocurrency market continued to grow, several governments and banks were not happy with the new trend. Customers were given all the reasons not to invest in cryptocurrencies. Within this same period, Doge was hacked, and millions of dollars were stolen. This was one of the lowest moments for Dogecoins and the entire cryptocurrency market because they lost a lot of money and trust to customers. The Doge community started a campaign online to raise money for the investors who had lost.
The ‘SaveDogmas’ initiative was successful because, within a month, enough money was raised to reimburse the affected customers. Many people had a lot of trust in Dogecoins because by January 2014; the coin had already recovered and trending. During this time, the coin’s trading volume slightly surpassed that of Bitcoin and all other coins combined. One year later, in January 2015, Doge reported $13.5 million in market capitalization.
Over the years, Doge has continued to grow and support several community developments. The company has helped several developing countries across the world. One of the beneficiaries is Kenya which was granted $50,000 to help in water projects. In 2014 Doge community also supported the disadvantaged Olympians who wanted to attend the Sochi Winter Olympics, but they didn’t have the resources. According to the company policies giving back to the community is one of the major objectives.
Although the journey has not been easy, today, Dogecoins is exchanged with major currencies like DOGE/CAD and DOGE/USD. It’s also available in inter cryptocurrency with some of the leading coins like DOGE/BTC, among many others. Building a global currency is one of the biggest achievements because it doesn’t matter where you on the planet. You can easily access your money and perform some trades. Doge opened its first ATM in Vancouver in February 2014. Since then, others have been put in different states, and tremendous growth has been reported.
In January 2018, Doge reported its market capitalization to be slightly above $ 2 billion. During this time, it was peak at $ 0.017per coin. For all the past years, the coin was stable and slowly growing. Remember, in any trading market, it’s not easy to maintain the coins due to stiff competition from other currencies and other market forces. To the moon is a phrase commonly used by the cryptocurrency community when they are referring to more gains in currency value.
Social media influence
The Doge community has mostly interacted through different social media platforms like Tik Tok, Reddit, and Twitter. As we all know, the idea was born from trending memes on social media and grown on the same platforms. By this, I mean most of the coin’s support came from social media platforms. In July 2020, there was a significant improvement in the value of the coin following a Tik Tok trend with the aim of supporting the coin to attain a price of $1.
The initiative to push for the rise was positive because, unlike other coins like Bitcoin, Doge has no limits in supply. If the current trends are anything to go by, then the Dogecoins will continue to rise because future projections show the rate of inflation is bound to decrease. Currently, the coin is on the top ten list, with Bitcoin leading by 80% market capitalization. Remember, out of more than 500 cryptocurrencies, being top ten takes a lot of effort and commitment in serving clients better.
Recently Elon Musk has positively influenced the cryptocurrency market. Elon, the founder of Tesla, is among the richest people in the world. He has a lot of power and social media influence. In his Twitter account, he has more than 44.7 million followers. Between last year and this year, he has twittered around six tweets about Doge. Although they were on different occasions, every time he twittered, there was a significant trading volume.
According to Elon Musk, he tweets for fun, but abnormal growths have been realized every time he tweets. So far, the months of January and February have been the best for Dogecoins. For example, in January, the coin grew by 800% in less than 24 hours due to Elon Musk’s social media influence. Redditors also played a big role in sharing the information and inspiring more people to invest.
Around mid-February this year, the coin attained the highest price ever, following a tweet from Elon and the famous musician Snoop Dogg. All this growth happened within a month. This clearly shows the kind of growth these influential people can bring to your business. Remember, on January 28, 2021, the market capitalization stood at $ 5.3 billion, but by February 8, 2021, it was slightly above $ 10.2 billion.
Mark you, this is not only the case for Dogecoins. Other platforms, like Bitcoin and messaging app signal, have benefited from his social media influence. For example, on January 29, 2021, he changed his Twitter bio to #bitcoin. Within few hours, the value of Bitcoin rose from around $32,000 to over $38,000. It is clear with this kind of influence you can rapidly achieve a lot of things within a very short time.
From the above history, many people are willing to push and support the growth of Dogecoins. If that trend continues, you can be sure the coin will hit $1 and grow more. Since the coin is less than a decade old, there is potential and room for more growth. Some people believe Dogecoins are far much better than Bitcoin, but only time will tell.