Dogecoin “takes off” 542 times overnight: Shen Teng’s new “spokesperson”

‍‍”I’m a dog in the Metaverse, I’m DogeKing.”

On January 31, Shen Teng broke the mystery in the Spring Festival Gala sketch. His original intention was to satirize the Metaverse and Dogecoin. Unexpectedly, the reality was more magical. Coin speculators flocked to exchanges. The virtual token DogeKing with the same name as “DogeKing” Short-term soared 542 times. The Spring Festival Gala hides the password of wealth, and Shen Teng has become the “spokesperson” of Dogecoin.

According to the Financial Associated Press, data from the Avedex exchange shows that the price of DogeKing rose from $0.000000000007 to $0.00000000372 in a short-term, and the 24-hour trading volume reached $460,000.

According to public information, the coin is a token on the Binance Smart Chain (BSC), a derivative of Dogecoin, and will be launched in November 2021. The liquidity of the coin is locked for one year, and the project is completely decentralized and community-driven. The official website does not give the name and information of the team behind the project, nor does it provide a white paper.

Without professional skills and no team endorsement, Shen Teng sent the eponymous Doge King to the altar with just one sentence, which was absurd like a joke. As everyone knows, this kind of operation is commonplace in the currency circle. For the insiders, this is no longer a speculation, but a belief.

Musk’s myth of the currency circle

The last person who easily moved the price of Dogecoin was Musk.

In February last year, the godfather of the currency circle sent 3 tweets in full support of Dogecoin, saying that Dogecoin is the digital currency of the future, attracting a large number of believers. The price of Dogecoin jumped from $0.0359 to $0.0530 in an instant after Musk posted a cartoon picture of himself lifting Dogecoin to the sky. Dogecoin rose 10.4 percent to $0.47 in a day after Musk announced that he was working with Dogecoin’s developers to improve the system’s transaction efficiency.

Dogecoin "takes off" 542 times overnight: Shen Teng's new "spokesperson"

Until January of this year, Musk was still supporting Dogecoin. On January 14, some items on Tesla’s US online store accepted Dogecoin as a payment option. This just confirms Musk’s previous promise that “some Tesla peripherals can be purchased with Dogecoin in the future.” Dogecoin rose in the short term, and the intraday gain expanded to 20%.

In addition to accepting Dogecoin payments for his own products, Musk hopes to push more merchants to support Dogecoin. On January 25, Musk tweeted that he wanted McDonald’s to accept dogecoin as a payment method. According to data from CoinMarketCap, dogecoin rose 8% on the day.

Under the influence of Musk’s celebrity effect, Dogecoin’s growth has been smooth, and its value has soared. According to Coindesk data, from its inception to May 2021, it has risen by more than 91,188%, far exceeding the cryptocurrency leader Bitcoin. Its market value has also broken a record of $90 billion, and it is now above new and old giants such as Twitter and Ford Motor.

However, Musk is the self-proclaimed godfather of Dogecoin, and his words can push Dogecoin to the altar or make it worthless.

On May 8, 2021, on a well-known American comedy show “Saturday Night Live”, Musk admitted that Dogecoin was a “scam” during a joking questioning by the host. The day after the show aired, Dogecoin plummeted 39% to $0.4347.

Dogecoin itself has little value. Most of its market value of 90 billion US dollars is based on Musk’s fans. Once Musk announces that Dogecoin is denied, then Dogecoin will pass away, and countless people will face liquidation.

The Birth of Dogecoin

Musk, who is in the currency circle, can only be regarded as the “stepfather” of Dogecoin. The real “father” is IBM engineer Billy Marcus and Adobe software engineer Jackson Palmer. In 2013, the duo spent only 3 hours copying the code of Bitcoin, using the popular Shiba Inu emoji as the logo, and created a copycat version of Bitcoin, so Dogecoin is also called altcoin.

They dubbed the new cryptocurrency Dogecoin, a mockery of Bitcoin’s unreasonable skyrocketing phenomenon at the time. It can be said that Dogecoin was born as a joke.

Dogecoin "takes off" 542 times overnight: Shen Teng's new "spokesperson"

The initial issuance of Dogecoin is 100 billion, with an annual increase of 5%, which is almost unlimited compared to Bitcoin. At the same time, the “mining” process of Dogecoin is also simpler, requiring less equipment and a graphics card; it doesn’t take much time and can be completed in 60 seconds. The so-called “mining” means that people use computers to solve complex mathematical problems to unlock new coins.

Because there is almost no cost, the price of Dogecoin is very low. The launch price was only $0.0006, and the price fell to $0.0001 during the period. You can buy tens of thousands of Dogecoins for $100. If these Dogecoins have been held since the sale, and as of 15:00 on February 3, Dogecoins reported $0.14 per piece, then they would get 233 times the income, which is $23,333.

Despite Dogecoin’s outrageous gains, the founders didn’t profit from it.

Palmer officially quit the currency circle in 2015 and emptied his social accounts. He has explained that he wants to focus on the technical research and development of cryptocurrencies, and in his view Dogecoin is turning into a speculative tool.In the same year, Marcus was laid off by the company and sold all the Dogecoin he had at the time. The money was only enough to buy a second-hand Honda Civic.

In July last year, Palmer returned to social media, sounding the alarm bell in the currency circle. Not only did he criticize those in power in the cryptocurrency space, arguing that they were engaging in a form of “financial exploitation,” commonly known as “cutting leeks,” but also pointed out that the sharing and marketing of cryptocurrencies was problematic, “buying influencers and pay-to-play” Media outlets that perpetuate a cult-like ‘get-rich-quick’ channel designed to extract new money from the financially desperate and naive.”

Marcus, despite returning to the cryptocurrency bandwagon, also said that Palmer’s views are “basically correct.”

Drumming a fancy scam

The “scam” that Palmer has repeatedly criticized is actually known to almost everyone in the currency circle.

On May 9, 2021, the well-known institution Grayscale Trust has publicly shorted Dogecoin. Its founder, Barry Silbert, publicly stated on Twitter: “Now is the time to exchange Dogecoin for Bitcoin. We have shorted Dogecoin through the tools of the FTX exchange.” Affected by this news, the original price has risen. Dogecoin, whose market value is close to the third-largest digital currency BNB, plummeted to around $0.4 in an instant.

The “hoax” that Musk admitted on the show also brought this fact to the public once again. However, for people in the currency circle, Dogecoin is not a pure currency, but a means for retail investors to fight against capital.

In January last year, the GME short-squeezing drama was staged in the US capital market. The restricted trading of GME stock has sparked dissatisfaction among retail investors, who believe that it is helping institutional shorts and is unfair to retail investors. Driven by public opinion, GME stock soared 10 times in just two weeks. American retail investors, through fighting in groups, pulled GEM, which is about to be delisted, from $3 to more than $400. It can be called a typical incident of retail investors against institutions.

Dogecoin "takes off" 542 times overnight: Shen Teng's new "spokesperson"

The “useless and ridiculous” nature of Dogecoin itself fits the mood of retail investors against institutional capital. When this sentiment continues to Dogecoin, even if Dogecoin itself has no value and is a blatant scam, retail investors will rush in and push up the price of Dogecoin, proving to institutions that this is a victory for retail investors .

Coupled with Musk’s advocacy, more people are willing to believe that Dogecoin is the “currency of the future”. The financial game of Dogecoin has changed from a scam to a belief. Countless people are here, dreaming of getting rich overnight.

It is worth mentioning that about 28% of all Dogecoins in circulation are in the hands of a single person (or entity); at current prices, this portion of Dogecoins is worth about $2.1 billion. Once this person (or entity) sells all Dogecoin, Dogecoin may be completely paralyzed.

Speculating coins is like speculating shoes. The value of the item itself is not high, and it is not even endorsed by a professional team, but as long as there is another person who takes over, then it will never lose money. It’s like playing a drum to pass flowers, as long as the drums don’t stop, you can still make a fortune.

The “old leeks” in the currency circle will also sincerely tell the newcomers, please be sure to enter the game lightly, and greed will lead to nothing.

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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