Dogcoin, which has soared 130 times, will eventually be worthless?

What is Dogcoin? Who is speculating on it? What is the reason for its soaring? Is it a bubble that will eventually burst?

Dogcoin, which has soared 130 times, will eventually be worthless?

On the afternoon of April 28, 2021, Musk, the “King of Tesla and Emperor of Mars,” tweeted that he would host the popular NBC late-night show “Saturday Night Live” (SNL) on May 8 and referred to himself as the “Godfather of Dogcoin” in the tweet. The Dogefather”. Shortly after the tweet was sent, dogcoin surged, soaring 21% during the day, with the price once surging to 34 cents.

Underneath each of Musk’s tweets for dogcoin, it was a cyber frenzy: big star Musk was on stage shouting orders, and fans below waved and screamed – “Let dogcoin go to the moon!”

On May 5, the price of dogcoin surged again, with a 24-hour gain that once exceeded 56% and set another record high. If we take the price of $0.004662 per coin at the beginning of the year, as of May 6, the price of dogcoin has increased 130 times this year. The absurdity is that this hugely popular and soaring coin was born out of a joke, with the founder using the exaggeratedly playful Doge dog head emoji as a logo in order to satirize the speculative atmosphere of the Bitcoin community, but then the joke got bigger and bigger, attracting Musk to stand up for it and taking the Dogcoin hype to new heights.

What is DogeCoin? Who is hyping it? Deep Burn will now take you to study it.

What is the skyrocketing dogcoin?

2021 is the year when cryptocurrencies come out of the circle in full force. When people thought that the soaring and plunging of Bitcoin was enough to represent the characteristics of cryptocurrencies, another even crazier coin, dogcoin, started to enter people’s view.

“Dogcoin is really outrageous”, “Dogcoin is at a new high”, “Musk is taking Dogcoin to the moon”… …At home and abroad, dogcoin has become a “form of investment” that people are buzzing about and starting to try. The reason why I put it in quotes is that unlike Bitcoin’s so-called “consensus” of “decentralization and anti-overdraft”, what carries the value of dogcoin is a playful and frenzied emotion, and whether or not topping up for emotion is considered an investment is not the “consensus” of the cryptocurrency community. The “consensus” in the cryptocurrency world is not whether or not topping up for emotions is considered an investment.

No cryptocurrency will be identified by a dog’s head. Unlike the common impression that cryptocurrency is naturally serious, Dogcoin has catered to the needs of Internet natives to pursue fun and rebel against rules from the very beginning, becoming a virtual currency with a community culture and unique.

The story began in 2013 when Jackson Palmer, an Australian marketer working on virtual currencies, saw a Shiba Inu becoming popular on the internet, registered the domain name, and sent out snarky tweets on Twitter promoting dogcoin. Then Billy Markus, an American programmer interested in virtual currency systems, saw the tweet. The two hit it off and the Dogcoin system, which draws on Litecoin’s fusion cryptography and is based on the Scrypt algorithm, went live.

After the launch of the dogcoin system, it was quickly included in the American social software Reddit, and became a way to be used for rewarding within Reddit – people who post and share content online only need to leave a string of codes for their wallets, and others can easily reward them with dogcoins for support. Combined with the extremely low price of dogcoins, Reddit users continued to share dogcoins back and forth, expanding the dogcoin user base. in 2013, dogcoins peaked at just $0.00142.

Later, from rewarding and tipping to internet services, people were not satisfied with limiting dogcoin to a small circle. Currently, Facebook can use dogcoin as a tip, mainstream media video platform Twitch accepts dogcoin as its subscription payment currency, and the US High School eSports League uses dogcoin as a prize.

On April 22, according to foreign media reports, more than 140,000 people have signed a petition calling on Amazon to accept dogcoin as a payment method.

According to CoinMarketCap, the price of dogcoin has recently soared, with its total market capitalization reaching $50 billion on April 20, surpassing Ford Motor, and $87 billion on May 6, surpassing FedEx and becoming the fourth largest digital currency after bitcoin, ethereum and coinancoin.

Who is sending Dogcoin “to the moon”?

There is no doubt that Musk is the king of carrying goods in the cryptocurrency world. Dogcoin’s rise to prominence can’t be separated from his tweeting.

“We don’t need to be billionaires to own dogcoin”, “Dogcoin is the people’s virtual currency”, “I’m not drunk or depressed, I only have dogcoin in my heart” ……2 On April 4, Musk sent several tweets in a row to stand up for dogcoin, which surged by 50%.

On April 1, April Fool’s Day, Musk said again that he would use SpaceX to bring a dogcoin to the moon. Once the news came out, dogcoin pulled up in a straight line, soaring 15% on the same day. After that, dogcoin started a rapid rise – since April 14 broke through $0.1, followed by a record high price of $0.43 on April 19, the coin price surged 336% in just one week.

Since then, “send dogcoin to the moon” has become a code word for Musk and his fans, which is a double entendre, referring to the physical sense of “going to the moon” on the one hand, and expecting the price of dogcoin to soar to the sky on the other. Musk calls out orders, fans make money.

Dogcoin, which has soared 130 times, will eventually be worthless?

Musk brought up dogcoin several times on Twitter Source / Twitter

“It was because I watched the news and knew that Musk tweeted several times and mentioned dogcoin that I started to get excited”, Ye Hua, who is engaged in new media operations, bought 900 yuan of dogcoin at the beginning of March when the price was $0.05 per coin. in April, Musk continued to bandwagon for dogcoin and Ye Hua waited until his internship salary arrived and bought The company’s main business is to provide a wide range of products and services.

In March, Munan bought 5,000 yuan of dogcoin at $0.049 per coin. The one who led him to dogcoin was a “cryptocurrency vlogger”. After spending 5,200 yuan for the initiation fee, he learned about dogcoin through the VV’s knowledge planet, Weibo, WeChat and other channels. The logic behind the rise of dogcoin is that it has a large fan base, a large number of losers, and Musk with goods.

He refers to dogcoin users as “losers”, whose general characteristics are: straight, not much money, a stickler, like Musk, and high enthusiasm. “We all have a sense of identity, and I enjoy the process of buying and communicating with my coin friends and enjoying the thrill of the ups and downs.

Mounan said that the analysis of this big V that he followed said, “Later Musk will also pull the disk, because Musk’s Mars plan needs money, if through financing, selling cars, the speed is too slow, only choose a coin that is not invested in the early stage, crazy pull high, come to money fast.”

Cryptocurrency data agency PAData, after analyzing the trading data related to dogcoin this year, found that the trading volume of Binance, OKEx and Huobi exchanges together accounted for more than 60% of the total trading volume of DOGE, and within the scope of the markets covered by the three exchanges, the market that needs to use stablecoin as a medium of exchange is mainly the Chinese market, which may mean that the main DOGE buyers are Chinese users.

Will the bubble finally burst?

How far can Dogecoin go? Will it become an over-the-top “internet sensation” and then be forgotten? No one can give a clear answer.

The company’s main business is to provide a wide range of products and services to its customers. “The company’s main goal is to provide a good solution to the problem.

“I think the heat of the dog coin is a bit past, and I do not know much about cottage coins, no faith, only speculation”, said Ye Hua, although the time to sell the dog coin think, dog coin will have a few waves of big rise, but he still intend to get off. “This kind of coin has the possibility of going to zero and also soaring, I don’t want to gamble. So it’s better to switch to platform coins and mainstream coins.”

Ye Hua felt that the dog coin was too “exciting”. He said he looked at the dog coin in his hand every day from 2,000 yuan to 6,000 yuan, and then from 6,000 yuan to 15,000 yuan, and then back to 6,000 yuan, every day to think about whether to add positions, or not to retreat, too tired. “This kind of coin is too volatile, I don’t want to be disturbed by this kind of short-term fluctuations to normal life. After selling it, I felt the long-lost clarity.”

The future value direction of dogcoin is difficult to define. Because initially, the number of dogcoins was limited to 100 billion, but in the end, dogcoins became a coin with an unfixed total amount and unlimited incremental issuance.

“The factors that support the surge of dogcoin are Musk’s shouting orders and high market sentiment, and these factors do not always support the surge of dogcoin”, Cheng Zhipeng, head of Firecoin Research Society, analyzed to Deep Burn that, unlike Bitcoin, the value core of Bitcoin is decentralized crypto assets, and its consensus is based on The consensus is based on the positioning of “scarce digital gold”, so people think that bitcoin can be worth money. Dogcoin, on the other hand, was not designed around the value of dogcoin, but rather around the social function of dogcoin, such as rewarding.

In addition, the high concentration of holders makes the future of dogcoin uncertain. on February 15, Musk tweeted, “I fully support major holders of dogcoin selling most of their currency. In my opinion, too much concentration is the only real problem.” According to Coindesk, the top 10 dogcoin addresses account for about 41.35% of all dogcoins in circulation, meaning that a small group of dogcoin investors could easily manipulate the price of dogcoins.

Dogcoin holders understand this, too. Ye Hua said, in case one day the dealer smashes the market and sells off sharply, the retail investors will only be harvested, and those who can run away before that day comes will be considered winners.

Posted by:CoinYuppie,Reprinted with attribution to:
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.

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