Dogecoin and its Trip to the Moon
What is a dogecoin, and how has the meme-based cryptocurrency exploded?
What is a Dogecoin?
Dogecoin, pronounced (dohj-coin), is a cryptocurrency, or a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority like a bank. Dogecoin was created in 2013 by software engineers Billy Markus and Jackson Palmer. Its face is a Japanese breed of dog called a Shibu Inu, which gained fame through a meme in 2013 from a Tumblr post titled, “Doge.”
The cryptocurrency was created in December of 2013 as a joke, with an image of a meme dog and Comic Sans Font influenced by other cryptocurrencies’ startings, including Litecoin (LTC) and Bitcoin (BTC). It began as a simple cryptocurrency with little value for dogecoins fans and “shibes,” users on r/dogecoin. On this Reddit forum, they used Dogecoins to rate each other’s posts and memes, implementing the cryptocurrency as a form of “tipping.” However, it soon gained capital through donations and grew in value.
Recently, Dogecoin has gained popularity with its appearances in media through social media influencers and billionaires.
How have big names gotten involved?
One of the main reasons this “joke cryptocurrency” has exploded is because of media promotions, primarily on Twitter. Billionaire Elon Musk, who has over 46 million followers on Twitter, has tweeted about Dogecoin on numerous occasions, calling it his favorite cryptocurrency. Through a Twitter poll, Elon Musk stated that he believes Dogecoin will be the earth’s currency; his followers agreed.
Market-moving through social media is no new action for Elon Musk. His tweets can make or break a stock. On January 7th, 2021, Musk tweeted, “Use Signal,” intending to advertise the encrypted messaging app, Signal. However, his influence and the vagueness of the tweet led to a massive spike in an unknown stock named Signal Advance (SIGL), which escalated 527% on the 7th and another 91% on the 8th. It rose from 60 cents to $7.19, a 1,100% increase.
Elon Musk is not the only influencer who has advocated his support for Dogecoin. The cryptocurrency has been boosted by TikTok memes and the rise in popularity of #stocktiktok, groups of TikTok users teaching young investors about the stock market and investing.
What is “to the moon” and the rocket emoji 🚀?
Alongside both Dogecoin and other “meme-stocks,” the phrase “to the moon” has surged in popularity in the last few months. It first hit mainstream media over the r/wallstreetbets craze and popularity over Gamestop (GME). The phrase reflects a prediction or endorsement of a stock, which is expected to go “to the moon” — or in other words, skyrocket in growth. Recently, especially in terms of Dogecoin, many users have commented: “Doge to the Moon 🚀 🚀 🚀” all over social media. If you do see this on social media, it does not mean you should instantly deposit all your earnings into it. Some have done this… and lost millions.
Author’s Take
So, what’s the takeaway? Should I invest in this somewhat joke-stock? To answer this, I agree with Mark Cuban, “Literally, and I say this with all seriousness, it’s the best entertainment bang for your buck available … You can buy $1 worth or $10 worth and have fun watching it all day every day.” Dogecoin might not be the stock to make you millions, but it’s something fun to follow and watch. Especially with the attention, it is being given by the media and endorsement from one of the world’s wealthiest people, Elon Musk, it has a high chance of rising.
Sources:
https://en.wikipedia.org/wiki/Dogecoin
https://knowyourmeme.com/memes/doge
https://foreignpolicy.com/2021/02/11/dogecoin-how-does-it-work-elon-musk-cryptocurrency/
