Dogecoin, a billion dollar joke backed by Elon Musk

Dogecoin a billion dollar joke backed by Elon Musk

Launched in 2013 by Billy Markus and Jackson Palmer as a "joke", Dogecoin (DOGE) is a hugely successful cryptocurrency. The coin, whose mascot is a breed of Japanese dog (the Shiba Inu), has a market capitalization of $5.6 billion and ranks 13th in the world among existing cryptos.

What is Dogecoin ?

Dogecoin is a Luckycoin-based cryptocurrency, which itself has its origins in Litecoin, the virtual currency in the shadow of Bitcoin. Therefore, DOGE shares several features with Bitcoin and Litecoin.

The process of mining this virtual currency works through a "merged mining" model. In other words, the miner can mine blocks from two different blocks, through the consensus mechanism known as Ancillary Proof of Work.

The launch of DOGE was to make fun of other cryptos, which at the time were rather frowned upon. A month later, the currency's capitalization reached $60 million.

As a reminder, DOGE's logo is nothing other than the famous Japanese dog breed "Shiba Inu", which proves that the project was launched as a joke.

While crypto-active was not originally intended to be useful, it has proven to be useful for many things. It has been used to raise funds and tip content creators. Reddit, Twitter, Twitch and Freenode IRC are among the platforms that accept tips made in DOGE.

Note that it is possible to buy DOGE on Binance, OKEx, Huobi, Kraken, Bittrex, etc. As a reminder, Binance is the platform with the highest DOGE liquidity. This is why it is strongly recommended to use it.

$DOGE jumps 264% thanks to a Reddit forum

It seems that the mania for "short squeeze" (forced liquidation) around the shares fueled by the social media Reddit has spread to the universe of virtual currencies, particularly on DOGE.

According to data provided by TradingView, the Dogecoin has risen more than 264% to 0.0463 dollar (January 29, 2021).

Imitating the frenzy launched by r/WallStreetBets traders on Reddit (who were behind the GameStop rally), users of a forum called "SatoshiStreetBets" promoted virtual currency to generate huge capital gains. This is the same process triggered by traders for GameStop, AMC, Bed Bath & Beyond, BlackBerry, etc.

On "SatoshiStreetBets", many messages follow one another to incite forum members to buy Dogecoin. In fact, the tweetos also asked billionaire Elon Musk to post a tweet about Dogecoin. By the way, the richest man in the world has already tweeted about DOGE, saying it was probably his favorite cryptocurrency, making it explode on the rise.

On January 28th, he once again supported currency, tweeting a photo on the cover of "Dogue" magazine. On Reddit, users deduced that Tesla's boss supports the crypto-active project. In fact, one user on the social media posted:

"Mr. Musk is with us... on the moon."

The same day, Elon added the hashtag #bitcoin to his Twitter profile, which sent the currency up 20%.

How well is Dogecoin doing ?

(Edit: May 10th, 2021)

According to data from CoinGecko (May 10th, 2021), the DOGE's capitalization is approximately $64 billion, placing it in 4th position among the cryptocurrencies with the largest market capitalization. Between January 28th and 29th, the DOGE made +1,100%, going from a value of less than 0.008 dollars to 8.85 cents. This feat caught the eye of many people while bringing in a new wave of new and experienced investors.

As a reminder, WallStreetsBets placed DOGE at the top of the weekly ranking (January 31st, 2021). The virtual currency is skyrocketing and so far maintains a pretty good weekly increase. Its price increased from $0.078 on January 29th to $0.49 on May 10th.

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