The popular Meme currency DOGE is followed by “dogs”.
As the new Internet celebrity in the “Zoo Series”, the popularity of Dogecoin BabyDoge has spread even faster. On July 1, Musk imitated the lyrics of the well-known nursery rhyme “Baby Shark” and tweeted “Baby Doge, doo, doo…” for BabyDoge.
Soon, BabyDoge quickly became a hot topic on Twitter, and the price instantly more than doubled. The currency’s popularity quickly began to spread from Twitter. To this day, the heat is still fermenting. Data shows that BabyDoge has increased by more than 245.59% in the past 7 days.
There is also a rapid increase in BabyDoge’s currency holding addresses. On June 26, the number of BabyDoge addresses exceeded 150,000. After Musk tweeted on July 1, nearly 50,000 addresses were added that day. Up to now, BabyDoge addresses have exceeded 380,000.
BabyDoge is generally regarded as the next relay of the animal-based Meme currency. However, after three stages of development, the Doge series of currencies have undergone qualitative changes. In the process of transmission from Western projects this time, the “model currency” trend of BabyDoge and Doge series derivative currencies has been fully revealed.
Doge derivative, Meme third generation
The overseas project BabyDoge is based on the Binance Smart Chain BSC and was launched as early as June 1st. It claims to be beyond the “father” Doge and SHIB. This has attracted a large number of investors who were previously obsessed with the Meme concept.
Subsequently, the interactions between Musk, Soulja Boy, and others in the crypto community, and the BabyDoge community, once again aggravated the irrational sentiment in the market. BabyDoge is growing rapidly with approximately over 10,000 addresses per day.
Compared with the previous two Meme booms, the third-generation Meme currency BabyDoge has derived new features.
The original Dogecoin Doge is the first generation “MemeCoin” recognized by the crypto community. Its “fun and friendly network currency” connotation and community spontaneous communication have been the long-term vitality of Dogecoin.
From January to March 2021, the “second generation” Meme currency completely exploded under Doge’s constant hype. To a certain extent, the first surge of Doge currency was regarded as a kind of inheritance of the “Robinhood retail movement” at that time. Since this “collective consensus” even surpassed the “fundamental” in the short term, the Meme currency “zoo” was rapidly derived for a period of time. Some institutions and communities have successively participated in it. The crypto community has begun to regard this type of currency as the “zoo”. It is an emotion-driven asset.
After BabyDoge was born, its heat spread was unfolding in an exaggerated form. What is clear is that in the official white paper, its token model introduces a deflationary model, which is much different from the previous Meme concept currency. BabyDoge has become the former “model currency” in a certain sense. .
Baby Doge has no obvious technological innovations, and many investors have also expressed average feedback on the concept of “charity for stray dogs” put forward by it. On the contrary, behind the rapid expansion of Baby Doge, its deflation mechanism and currency dividends are particularly eye-catching.
According to the white paper, 5% of each BabyDoge transaction will be redistributed to BabyDoge holders, and 2.5% will be burned. In the token destruction mechanism, the project party originally planned to complete about 70% of the destruction plan within 6 months, and now more than one-third of the coins have been destroyed. In BabyDoge’s model, once investors sell, they need to spend more to repurchase. This method has greatly stimulated investors to hold the currency for a long time.
Under BabyDoge’s currency holding reward mechanism, investors who put BabyDoge Coin in the TokenPocket wallet can enjoy the right to dividends, which will stimulate more investment choices not to sell. It is not difficult to see that BabyDoge is a deflationary currency, and through its trading mechanism, transaction costs will become higher and higher.
However, under its deflationary mechanism, the BabyDoge project and the community are constantly emphasizing its scarcity. In the community, it has been classified as a “deflationary dividend disk.”
There are discussions in the community that BabyDoge has a huge issuance volume and the number of coins in the hands of currency holders continues to increase. When large investors choose to leave the market, more new investors will take the next step. In the face of rapidly increasing addresses, the relationship between funds and “dividends” needs to be balanced. Once the new funds cannot maintain the current price, BabyDoge will face a great risk of failure and collapse. Then, the project party has to accelerate the burning To maintain an increase in addresses and a relatively healthy market value.
What can be observed is that the overseas encryption community is very excited about this “model”. Before Musk released related tweets, BabyDoge’s currency holding addresses had accumulated nearly 200,000. This is the result of the joint participation of the secondary market, project parties, and early participants. This speed is also difficult to achieve with overseas Meme currencies. of. The overseas crypto community’s promotion of BabyDoge continues, but it is not clear what follow-up effect the investors who flock in will face.
In terms of promotion methods, BabyDoge project parties and the community have adopted a very “Meme” characteristic method. Donations to help stray dogs, BabyDoge logo racing cars participating in the NASCAR races in the United States, etc., have become publicity of many community investors. material.
As of press time, BabyDoge has fallen by more than 32.40% within 24 hours. Regardless of the risks that BabyDoge faces in the later period, BabyDoge, a model currency born entirely overseas, has reached the forefront of the crypto community.
The “model currency” that was once used in Asia in 2019 is being reignited in overseas projects. The rational point of view is that the influx of a large amount of funds into such a new animal model currency has an unhealthy impact on the entire market.
New bottles and old wines, Western projects go back to the old path of “model coins”?
In the BabyDoge community, many investors are familiar with the currency and have given it nicknames such as “Baby Dog” or “Gou Bao”.
However, these nicknames may not be enough soon. After the BabyDoge model currency, the imitation of the currency is doubled, and the “model currency” from the West is rapidly deriving.
In addition to BabyDoge, Udoge, MiniDoge, Safe BabyDoge, Dance Doge, FatherDoge and other “dog families” are emerging in batches. These projects are all from overseas teams. Most of them are infused with different types of “Dogecoin” Meme concepts. Old model”. For example, MiniDoge introduced the “deflationary model, variable repurchase” model, FatherDoge introduced the “9% transaction tax, liquidity pool, marketing wallet” and other concepts.
This phenomenon is not the first time it has appeared in the crypto community. As early as the first half of 2019, a number of “model currency” projects in Asia were unexpectedly hot, and more currencies began to follow the model route. “Practice model” and “issuance model” swept the crypto community at that time. The current large number of Doge series currencies with different “models” may show the extreme trend of overseas community projects returning to the old path of “model currencies”.
In the first half of 2019, the concept of model currency appeared frequently. According to public information and media reports, the model currency can be understood as “a currency produced under a certain gameplay mode.” Based on the public information at that time, its operational characteristics mainly include:1. Model currency has no fixed model: each currency can have its own set of models, common models include dividend model, partnership model, etc.2. Model coins are sought after by hot money: Model coins are mostly small currencies, with low initial currency prices, pull offers, fast launch speeds, and hype gimmicks.3. The model currency is similar to the cx model: there are methods such as hierarchical pulling people, which encourage investors to hold for a long time and reduce the circulation in the market, which is often accompanied by dividends and high interest.
After the model currency is sought after, each model currency has formed a distinctive marketing model, and cooperated with all kinds of good news to attract investors in a simple and rude way.
In 2019, the focus of the promotion of a large number of model currencies is mostly on node fixed deposit dividends, fission, resonance, project partnership and other marketing models. In extreme cases, the model currency is almost equivalent to the capital market. At the same time, the model currency is not consistent with the traditional concept of “cx currency”. It can often log on to some trading platforms smoothly, increasing the credibility of the project. Regarding the model currency, the community has mixed opinions. The optimistic people look forward to the emergence of a better ecological model. They believe that this type of currency is full of possibilities, but the more rational view is that the speculation and hype of this type of currency are obvious and not sustainable. Sex.
However, it is difficult for these projects to have technological breakthroughs or project landings. In August and September of 2019, these model currencies collectively lost momentum, a large number of currencies fell by more than 90%, and there were many zero-return projects, which undermined the healthy development of the market.
It is worth noting that the current popularity of overseas “model currencies” led by BabyDoge is driving a large wave of overseas traffic into the market. According to Blocklike, the overseas traffic brought by this type of currency is considerable, and it continues to ferment in the Asian community.
In this case, a large number of overseas users have flowed into some trading platforms that launched this type of currency earlier, and through snapshots and other methods, users can obtain currency rewards in the platform, once again shortening the participation of users. path. As more and more people participate, the risk of these currencies crashing has been continuously pushed up, and the uncertainty of the market has once again intensified.
In the current secondary market, the change of the “third-generation” Meme currency and the corresponding market risks still need to be cautious. Blocklike will continue to pay attention to how the tide of Western “model coins” will have on the entire market.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/dangerous-zoo-babydoge-the-west-revisited-the-mode-currency/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.