Anyone who has been on social media lately has seen a flood of Dogecoin memes and celebrities promoting the project. Dogecoin has managed to go from a fun, light-hearted joke, into a major cryptocurrency in the world. Of course, this journey has been filled with twists and turns that continue to this day. Here’s how and why Dogecoin continues to capture an audience in the market.
History of Dogecoin
The history of Dogecoin begins on December 6, 2013. It was at this time that the project’s founders decided to reveal their new project to the market. The project’s founders, Billy Markus and Jackson Palmer built Dogecoin as a joke to entertain a select few Reddit users in their cryptocurrency group. As such, the coin entered service as a near replica of Bitcoin in terms of technical characteristics.
Notably, Markus was a software engineer at IBM and Palmer worked for Adobe as a programmer prior to releasing the Dogecoin project. Discussing the hasty creation of the coin, Markus has stated that he literally went through Bitcoin’s coding and simply altered some of the wording. For example, miners became diggers and so on. The hilarity of the project was taken to the next level by the fact that it featured a famous Shiba Inu meme dog as its logo.
Dogecoin vs Bitcoin
Not every aspect of Dogecoin was a replica of Bitcoin. For example, Dogecoin does away with the SHA-256 consensus algorithm used by Bitcoin. Instead, the network employs a Scrypt based PoW system. This decision eliminated the use of high-powered Bitcoin ASIC mining rigs from the network for years. Miners needed to configure new dedicated FPGA and ASIC devices to participate in the network. This strategy helped to prevent the level of mining centralization that had and continues to plague Bitcoiners until this day.
Despite its humble beginnings, Dogecoin instantly saw a rise in value following its launch. However, the bump was short-lived as the coin quickly saw the added value disappear in days. Despite this early pump and dump, Dogecoin had a bright future ahead of it. Unfortunately, to get to its place in the limelight, Dogecoin would have to endure a few more trials and tribulations.
Shortly following the launch of the coin, a large percentage of the network’s wallets were attacked and millions in Dogecoin were stolen. An unidentified hacker was able to make off with the funding by altering the send and receive page of the wallet. The scamster then replaced key portions of the page with a static wallet address. This allowed them to take these funds without any security measures.
Dogecoin Goes from Joke to Woke
This hack proved to be a defining moment for the Dogecoin community. Instead of taking the losses and leaving those who lost their coins in the rain, the network banded together. The developers and the community created a campaign called “Save the Dogecoins.” Within days, the community had donated enough Dogecoins to replenish all that was stolen and more. It was at this time that Dogecoin began to fulfill its greater destiny as a humanitarian project.
Dogecoin Continues its Helping Hand
The goodwill aspect of the project had become ingrained in the community and the developers were intent on keeping the momentum going. As such, the following year, Dogecoin sponsored a clean water initiative in Kenya. The project brought fresh clean drinking water to regions of the country that had suffered in the past. It was a huge success and set the pace for what would be the start of Dogecoin’s epic humanitarian push.
From there, the project assisted in a number of other interesting projects. For example, the Dogecoin community went on to sponsor the training of special assistance dogs for autistic children. The network even did its part to sponsor the Jamaican bobsled team in the Olympics.
Dogecoin Back in the Spotlight
Dogecoin quickly became known as more than just a joke following all of this great work the community accomplished. It also began to garner a lot of support from celebrities and other well-known names in the tech sector. However, it wasn’t until the WallStreet bets fiasco, that Dogecoin found itself one again on center stage.
In this incident, a large trading group on Reddit recognized that major hedge funds were naked shorting a variety of companies. One of which was GameStop. Recognizing that these firms would have to buy back these stocks at whatever price if they didn’t decrease in value, the group started buying up these stocks at a record pace. Eventually, this led to the hedge funds taking billions in losses.
More importantly, it led to the trading apps that work closely with these hedge funds restricting their users from purchasing these stocks. In the end, these actions drove the Reddit community to search for a fairer alternative. Eventually, the group decided that Dogecoin possessed the censorship-resistant characteristics needed.
The group began to push for Dogecoin in a major way. Their efforts caught the attention of one of the best known and richest entrepreneurs on the planet, Elon Musk. Musk co-founded Paypal, so he was no stranger to the prospects of digital money. Additionally, he was now the CEO of Tesla Motors. Musk sent Dogecoin prices shooting through the roof when he started posting memes with him and the prized Shiba Inu.
DogeCoin – What the Future Holds
No one can say with confidence what the market has in store in the future. However, it’s safe to assume that Dogecoin will continue to capture the hearts and minds of crypto traders for years to come. The project, which arose from a desire to make people laugh, has now blossomed into a community of kind-hearted crypto users and investors.
You can expect to see the network expand as there is now a strong drive to push the network’s functionalities and Dapp support. As such, the next Dogecoin bull run could be one for the books.