Once started as an internet joke, dogecoin (DOGE) is now Elon Musk’s favourite cryptocurrency.
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a joke, making fun of the wild speculation in cryptocurrencies at the time. Despite its satirical nature, some consider it a legitimate investment prospect.
Origins of the Dogecoin & Its Evolution
Dogecoin’s (DOGE) meteoric rise can be traced, in part, to the fallout from the GameStop saga in March 2021.
Individual retail traders who fueled GameStop’s rise turned to joke cryptocurrencies. Regular tweets in support of the Dogecoin (DOGE) from Elon Musk also helped it gain legitimacy.
The dogecoin market capitalization has previously reached $92 billion, as of May 2021, which is bigger than three-quarters of the companies in the S&P 500.
Many companies are now trading and mining cryptocurrencies including Dogecoin (DOGE).
The “meme economy” has developed its own vocabulary.
It includes words such as NFTs (unique digital assets) and stonks (stocks) that you hodl (hold) in hopes of going to the moon (benefiting from a rapid and enduring price increase).
It’s all part of the joke, showing that investors want to have fun and make money during this pandemic, not just memes.
With trading more affordable and accessible than ever, and billionaires using their influence on social media platforms to push their favorite stocks and cryptocurrencies, the meme economy is just starting to take off.
Some investors may even make it to the moon or lose all their assets. It’s important to state that several individuals lost their life savings by betting on cryptocurrencies.
The Future of Dogecoin and Emergence of the Shiba Inu Coin
Elon Musk has changed the reputation of dogecoin. It’s no longer seen as a joke. The cryptocurrency will certainly surpass $1 due to the volatility of the crypto market.
Dogecoin’s (DOGE) big moment came in May 2021, when the TESLA CEO appeared on Saturday Night Live (SNL).
In the weeks leading up to the event, cryptocurrency traders and observers openly wondered if Elon Musk would mention Dogecoin on the show.
The discussion gave the coin more mainstream exposure, and sparked interest from prominent figures like billionaire Mark Cuban.
Musk’s SNL appearance disappointed some crypto traders, as he jokingly called the Dogecoin a “hustle,” a comment that sunk its value 30%. The Shiba coin (SHIB) seemed to capitalize on the hype surrounding Saturday Night Live.
Two days following Musk’s appearance, Binance listed SHIB on its platform, and the price for SHIB doubled. In recent days, the shiba inu-themed coins known as SHIB have surged in value, in part because of their link to the more famous canine cryptocurrency, dogecoin.
Even if Dogecoin (DOGE) didn’t directly benefit from Elon Musk’s hosting duties, his appearance and the weeks leading up to it drew the attention of millions to cryptocurrencies.
The hype around meme coins such as Shiba (SHIB) and dogecoin (DOGE) is not a financial, but a social phenomenon.
the Dogecoin community successfully raised 67.8 million Dogecoins (around $55,000 at the time) in an effort to sponsor NASCAR Sprint Cup Series driver Josh Wise. Nicknamed the “Moonrocket”, the No. 98 car featured a Dogecoin/Reddit-sponsored paint scheme and was driven by Wise at the Aaron’s 499 at Talladega Superspeedway. Wise and the car were featured for nearly a minute, during which the race commentators discussed Dogecoin and the crowdfunding effort, while finishing twentieth and narrowly avoiding multiple wrecks.
On May 16, Wise won a spot at the Sprint All-Star Race through an online fan vote beating household name Danica Patrick, largely due to the efforts of the Dogecoin Reddit community. He finished the race in fifteenth, the last car running.
The following race in the Coca-Cola 600, Wise debuted a Dogecoin/Reddit.com helmet. Wise later announced he would run the car again at the Toyota/Save Mart 350 and the GEICO 500 as a thank-you gift to the community. He finished twenty-eighth in the race due in part to a refueling issue; he was in twelfth place after a gas-and-go pit stop, but the gas can did not engage long enough, resulting in a second pit stop that took him towards the back of the pack. Eutechnyx, developer of the NASCAR ’14 video game, added the Dogecoin car as a drivable car in a DLC pack.
Disclaimer: This article is for informational purposes only, you should not consider any such information or other material as legal, tax, investment, financial, or other advice. Seek a duly licensed professional for investment advice.