Should I buy Dogecoin ? The Unusually Surging Crypto
April 4, 2023
Should I buy dogecoin ? The Unusually surging Crypto.
According to Outlook India, the price of DOGE increased significantly within two hours of Twitter changing its logo, rising from $0.076 to $0.101. The price has since been unstable, reaching an intraday low of $0.090 today. As of 1 pm today, DOGE is trading at $0.099, which is the highest it has been in the last three months, but still lower than its all-time high in 2021. In the past 24 hours, DOGE has experienced a 544% increase in trading volume, and its market capitalization has increased by 25.93% to $13.68 billion. DOGE has surpassed Polygon (MATIC) in market capitalization and could soon overtake Cardano (ADA) if this trend continues.
The creation of the Dogecoin cryptocurrency in 2013 was intended as a humorous way to mock other cryptocurrencies such as Bitcoin, with the image of the Shiba Inu dog breed as its logo. This breed, known for its fox-like appearance, is a hunting dog from Japan.
Recently, Tesla CEO Elon Musk posted pictures of his own pet dog, a Shiba Inu named Floki, on Twitter, referring to him as the “new CEO of Twitter.” This caused an increase in DOGE prices due to the breed’s association with the cryptocurrency.
Throughout 2021, Musk has endorsed Dogecoin, calling it the “people’s crypto” and dubbing himself the “Dogefather,” according to CoinTelegraph. However, it is uncertain whether investing in a cryptocurrency that is solely reliant on popularity is a wise decision, particularly given that meme coins are generally considered high-risk investments. Unlike Stablecoins, DOGE does not derive its value from another asset and does not provide any added value to the financial system.
Meanwhile, Musk’s legal team has requested the dismissal of a $258 billion racketeering lawsuit filed against him, alleging that he operated a pyramid scheme to promote Dogecoin. The lawyers argue that supporting a legitimate cryptocurrency with tweets or humorous images is not illegal, and the court should dismiss the complaint.
Source: Outlook India
Twitter Changes its Logo
Last night (3rd April 2023), Twitter replaced its signature blue bird logo with a dog icon, which may leave those who are not heavily involved with online culture confused. The dog graphic used in the new logo is associated with dogecoin, a cryptocurrency that Twitter owner Elon Musk has publicly endorsed in the past. Shortly after the logo was changed on April 3, Musk shared an old conversation thread from March 2022 with the WCBChairman account, which suggested he should purchase Twitter and change the logo to the dogecoin dog. Some Twitter users have speculated that this was an April Fool’s joke that missed the actual day due to a lack of technical staff at Twitter.
According to reports in February, Elon Musk dismissed a senior Twitter engineer due to the declining engagement on his own account. This is just one of several instances of staff being fired or redundancies occurring since Musk acquired the platform in October 2022.
What is the reason behind Twitter’s new dog logo?
The change in logo has caused the value of dogecoin to rise by approximately 30%. In 2022, Elon Musk was sued by a crypto investor in New York for $258 billion (£207bn), who claimed that Musk was inflating the price of the cryptocurrency through a pyramid scheme. Such a scheme is an illegal business model that recruits members with the promise of payments or services for enrolling others, instead of offering investments or selling products. On April 1, Musk requested that the US judge dismiss the case, arguing that there is nothing illegal about expressing support for a legitimate cryptocurrency such as dogecoin, which currently has a market capitalization of nearly $10 billion (£8bn).
The Twitter logo switch is related to the ongoing lawsuit against Musk, where he was accused of inflating the price of Dogecoin through a pyramid scheme. Musk has argued that there is nothing unlawful about supporting a legitimate cryptocurrency like Dogecoin. However, Musk’s behavior seems to be similar to what the lawsuit was about in the first place, but on a larger scale. The dog depicted in the Dogecoin logo is a Shiba Inu, which is the subject of an internet meme that was popular from 2010 to 2013. Dogecoin was created as a joke by two software engineers, Billy Markus and Jackson Palmer, at the height of the meme’s popularity in 2013. Palmer has expressed skepticism about cryptocurrency, describing it as a hyper-capitalistic technology that primarily benefits its proponents through tax avoidance, diminished regulatory oversight, and artificially enforced scarcity.
Source: Standard UK
DogeCoin and Tesla
In December 2021, Tesla made an announcement that it would take dogecoin as payment for some of its merchandise. Musk, the CEO of Tesla, mentioned on Twitter that they would monitor how it went. Following the tweet, the price of dogecoin surged by over 20%. In January 2022, Musk announced on Twitter that dogecoin payments were available, and the cryptocurrency surged by up to 15%. Even though Tesla possesses digital assets on its balance sheet, including bitcoin, it still takes dogecoin as payment for certain items. On an earnings call last year, Musk said that Tesla had not sold any of its dogecoin and still has it. Musk also suggested that he holds dogecoin personally.
Source: CNBC
Some Interesting facts about Dogecoin
- According to Billy Markus, Dogecoin was created in just 2 hours and without much consideration for efficiency.
- Dogecoin’s all-time high price is $0.74, which it reached on May 8, 2021, along with its all-time high market cap of $93 billion. As of writing, its market cap is around $43 billion, which is almost as much as eBay’s.
- Dogecoin’s creator, Billy Markus, has stated on Twitter that he sold all of his Dogecoin in 2015 after getting laid off and is no longer part of the Doge Project.
- The dog on the Dogecoin logo is a Shiba Inu, a hunting dog breed. Other dog-based meme coins, like Corgi Token, have been launched after the success of Dogecoin.
- Dogecoin has one of the biggest cryptocurrency communities, with members who believe in its potential for a bright future. They support the coin and even raised $55,000 in 2014 for NASCAR driver Josh Wise to cover his car in Dogecoin and Reddit alien images.
- Dogecoin has gained a lot of attention on social media platforms like Reddit, Twitter, and TikTok, where a Dogecoin challenge went viral in the summer of 2020. Trading volume increased by 2000% due to the challenge.
- Dogecoin has many fans among celebrities, including Elon Musk (nicknamed “The Dogefather”), Snoop Dogg, and Kevin Jonas.
- Dogecoin has an unlimited supply, as the founders wanted to generate as many Dogecoins as possible. Currently, there are 129 billion Dogecoins in circulation, which is higher than Bitcoin or Ethereum.
- The mining process for Dogecoin is fast, with one block per minute and a block reward of 10,000 DOGE. Approximately 14.4 million new Dogecoins are mined daily, which amounts to 5.2 billion Dogecoins per year.
- In May 2021, SpaceX announced that it would accept Dogecoin as payment for a lunar mission called DOGE-1, which is planned for Q1 2022.
Final verdict – Should I buy Dogecoin ?
investing in meme coins like Dogecoin can be risky because their value is primarily based on their popularity rather than any underlying asset or added value to the financial system. Unlike stablecoins, which are pegged to a stable asset like a fiat currency or commodity, Dogecoin’s value is determined by market demand, which can fluctuate rapidly based on trends and social media hype. Therefore, there is a possibility that the value of Dogecoin may drop suddenly, resulting in significant losses for investors who have put money into it. In summary, while meme coins like Dogecoin may offer high returns, they come with significant risks and are not suitable for conservative investors who prioritize stability over potential returns.
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