FINTECH | CRYPTOCURRENCY
Meme coins are cryptocurrencies inspired by memes on social media. The top three dog-themed meme coins are Dogecoin (DOGE), Shiba Inu (SHIB), and Dogelon Mars (ELON).
Dogecoin is the leading meme coin or token. In this article, we’ll discuss the background story of dog-themed meme coins Dogecoin, Shiba Inu, and Dogelon Musk.
NOTE: Since there is so much background and stories about these meme coins, I’ve decided to break it down into a series.
“A meme coin is a cryptocurrency based on a meme. Often created as a joke, they are sometimes referred to as dismissive as opposed to mainstream cryptocurrencies.” — CNBCTV18.
Most cryptocurrencies, other than meme coins, are based on a project or utility. That utility often drives the price of the altcoin or token. However, that is not the case with meme coins. Their price is usually driven by its popularity or perhaps greed.
What’s the Story Behind DOGE?
Many enthusiasts don’t realize the dog on the face of the coin/token is a Shiba Inu.
Dogecoin is a crypto that operates like other cryptocurrencies in that it can be used in some forums as regular currency. For instance, internet users use it as a tip on Twitter and Reddit “to reward the creation or sharing of quality content.”
Yes, according to Samyuktha Sriram’s 8 December ’21 article on Benzinga.com, You Can Now Use Dogecoin to Tip on Twitter, Doge Co-Creator Billy Markus Weighs In. This could be helpful for journalists who write about DOGE frequently.
“If a #dogetip you have sent is not claimed for more than three days, the amount is returned to your account. You can withdraw from your @sodogetip Dogecoin address by interacting with the bot via DMs; you can also deposit #Dogecoin to your @sodogetip address.”— Mishaboar (@mishaboar) 7 December 2021.
Some merchants even accept DOGE as a payment method. You can buy various products such as computer accessories, household items, and domains with your DOGE coins. More on that below.
Dogecoin uses Scrypt technology, but it is based on the proof-of-work (PoW) algorithm “…forked from Luckycoin, which in turn was forked from Litecoin, which was forked from Tenebrix, which was forked from Bitcoin.” — Bitcoin Stackexchange.
“Scrypt (pronounced ess-script) works thanks to a known method increased derivation of keys through hard sequential memory functions. It’s certainly a complex name, but basically Scrypt hashes using a key, a series of key points marked in the hashing algorithm and adding a lot of noise.” — Academy.bit2me.
Dogecoin has a block time of 1 minute, at the cost of 1 cent. What most cyrpto enthusiasts refer to as “gas fees.”
Initially, it was to have a maximum supply of 100 billion tokens, but the creator entered improper coding, so 10,000 DOGE tokens could be minted per block after it reaches the 100 billion limit.
That resulted in an inflation rate of 5 billion DOGE tokens every year; thus, it doesn’t have a maximum supply.
If you don’t understand the significance of this “no maximum supply,” think scarcity and “the theory of supply and demand.” Theoretically, the scarcer an item is, the more valuable it is.
Many might ask, what is the functionality of these dog-themed coins?
Besides the prospects as an investment vehicle, you can use these meme coins like any other currency in places that accept them.
In this 10 February ’22 article by AJ Fabino, Benzinga points to 10 Companies That Now Accept Shiba Inu and Dogecoin as Payment.
Not to spoil their thunder, but those companies are:
1. Newegg
2. Tesla
3. Game Stop
4. Nordstrom
5. Barnes & Noble
6. AMC
8. Petco — seems like a natural fit.
9. Bed, Bath, & Beyond
10. Lowe’s
Those are some heavyweight companies and corporations, some global. If you have time, read the article. It’s exciting. It also lends credence to what Elon Musk said about DOGE being “…the people’s crypto.” I mean, if you can use DOGE to buy dog food…
DOGE Price Data from CoinMarketCap
“The live Dogecoin price today is $0.140873 USD with a 24-hour trading volume of $771,674,205 USD. We update our DOGE to USD price in real-time. Dogecoin is down 5.61% in the last 24 hours. The current CoinMarketCap ranking is #11, with a live market cap of $18,689,704,655 USD. It has a circulating supply of 132,670,764,300 DOGE coins and the max. supply is not available.” — Coin Market Cap 18 FEB ‘22.
You can buy, hold, sell, send or receive Dogecoin on various wallets and exchanges such as Coinbase. Before you buy and hold or hold crypto, you should consider a “cold wallet.”
You can read more about those in my article, Which Is the Best “Cold” Wallet for Your Crypto.
“Cryptocurrency-linked crime surged to a record high last year in terms of value, with illegal addresses receiving $14 billion in digital currencies, up 79% from $7.8 billion in 2020. — Reuters.
DOGE All-Time Chart to USD from CoinMarketCap
As you can see by this chart, DOGE stayed at its Initial Coin Offering (ICO) price pretty much until Elon Musk (his first tweet after buying $700 million DOGE) and Mark Cuban tweeted about the meme coin.
Elon Musk:
Mark Cuban:
This prompted a reply by Robinhood, which further inflated the coin’s price.
Still, many investors are more closely aligned with what David Kimberley told CNBC and view it as a “speculative bubble.”
“People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up, and then they can sell off and make a quick buck.”
However, if you’re crypto-trading savvy, it might not be a bad thing to “…make a quick buck.” Just do the research, buy on the dip, and have an exit strategy. Most do not believe DOGE, or any dog-themed coins are “buy-and-hold” type investments.
In the next segment, we’ll continue this look into dog-themed meme coins, What’s the Story Behind Shiba Inu (SHIB)?
Note: This post contains affiliate links. Read my disclosure statement for additional information.
DISCLAIMER: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser and anything I propose should be considered friendly banter to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making any significant financial decisions.
Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor. Also, a Top Writer in Nutrition, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.
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