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introduction:
The recent currency circle has been extremely lively, and tokens of various small animals have been enthusiastically sought after by market investors, and it all starts with this years currency king - Dogecoin (Doge). Dogecoin has increased by 80 times since the beginning of the year, and has increased by 180 times in the past year. The market value ranking has also rushed from the top ten to the top five. It is a well-deserved coin king in the currency circle this year.
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The birth of Dogecoin actually originated from a joke. The founders Jackson Palmer and Billy Markus combined the well-known Shiba Inu DOGE with unrelated cryptocurrencies in a whimsical way. The source code of Dogecoin took less than three hours to complete in total, and most of the content was copied from Bitcoin, replacing Bitcoin with Dogecoin. It is really unimaginable that Dogecoin can develop to nearly 100 billion U.S. dollars today. Even the founder himself did not expect that a joke of his own now has a market value of tens of billions of U.S. dollars.
There is no upper limit on the total amount of Dogecoin. In the first year, 100 billion will be mined at one time, and 5 billion will be issued every year thereafter. Compared with Bitcoin, the price of Dogecoin is also very cheap, and the transfer speed is also very fast, which is very popular among young people. At that time, the Western tipping culture was prevalent, and the emergence of Dogecoin gave people a new way of rewarding—Dogecoin rewarding. This is a bit like our current WeChat red envelope, so Dogecoin quickly spread among young people, and the number of users has also grown exponentially.
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In the development process of Dogecoin, reddit, a forum for retail investors, can be said to have contributed a lot. On the reddit forum, there is a lot of promotional content about Dogecoin, and reddit has also become the main battlefield for Dogecoin evangelists. With the help of reddit, the Dogecoin community has gradually formed a certain influence, and many large platforms have begun to support Dogecoin payments and rewards. Dogecoin has also gradually formed its own unique tipping culture, grassroots culture and charity culture, becoming the second largest cryptocurrency community after the Bitcoin community.
However, unlike the founder of Bitcoin, the founder of Dogecoin has already cleared all his Dogecoin and does not participate in community governance at all. To a certain extent, the decentralization of Dogecoin is more thorough than that of Bitcoin, and the community does not have to worry about the huge asset sale of the founders account.
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If Li Xiaolai is the number one contributor to the development of Bitcoin in China, then Gann can be said to be the number one contributor to the development of Dogecoin in the Chinese community. Gann claimed to be the president of the Dogecoin Association of China. He has been preaching about Dogecoin since 2014 and launched the official website of the Dogecoin Association of China (which is currently unavailable).
Due to the relationship between Gann and President Huang of the Bit Age, the first domestic exchange for Dogecoin to go online is the Bit Age (now AEX). At that time, more than half of the trading volume of Dogecoin was concentrated in the Bit era. The old players in the Bit era basically held tens of millions of Dogecoins, but those who can persist until now are rare. At that time, the Bitcoin era could be regarded as an influential digital currency exchange in China. With the huge traffic in the Bit era, the number of Dogecoin users in China surged, and Dogecoin was gradually used by domestic users for games and rewards .
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Dogecoin skyrocketed due to multiple factors
So why did Dogecoin rise wildly during this period? Personally, I think there are mainly the following reasons.
1. We mentioned earlier that the reddit forum is the most active position for Dogecoin enthusiasts, and the Game Station (GME) event of retail and institutional confrontation that was staged some time ago originated from the reddit forum. This naturally brought the FOMO sentiment of retail investors on GameStop to the currency circle, and Dogecoin has become the primary target of these investors. After the madness of GME, Dogecoin started the GME mode of the currency circle, which exploded nearly ten times in one day.
Musk’s delivery is not limited to the currency circle. Musk has a strong appeal in the technology industry. His words have brought a huge amount of funds outside the currency circle, which has a positive impact on the development of the currency circle. . Dogecoin has also reached historic highs as funds have poured into Dogecoin one after another, ranking fifth in the cryptocurrency rankings.
3. After Dogecoin hit new highs repeatedly, the FOMO sentiment has not yet cooled down. Another celebrity in the currency circle, Bao Erye, has also joined the battlefield. Bao Erye has a famous saying: If you buy a coin and dont sell it, you are stupid. Indeed, Bao Eryes MLM method is simpler and rude, directly encouraging fans to build Dogecoin groups, the goal It is to build 1W fan groups of 500 people. This kind of fission power is so terrifying that many retail investors joined these Dogecoin communities one after another and formed a certain consensus. For a time, most of the traffic in the currency circle was attracted to Dogecoin, forming a spectacle that most currencies fell, and Dogecoin was thriving.
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With the intensification of Dogecoin’s skyrocketing market, a large number of tokens related to dogs and other animals have appeared in the market in a short period of time, such as SHIB, DOG, PIG, etc. These currencies have been sought after by retail investors after they went online. And these tokens have almost no value, they are just here to catch the popularity of Dogecoin and harvest a wave of leeks. What they have in common is that the circulation is quite huge, and the price is very low, and millions of pieces can be bought with very little money. This made the speculators who missed Dogecoin have the mentality of taking a small chance, knowing that it is an air coin but still choosing to rush into the game. After a short period of floating surplus, what followed was a field of chicken feathers after harvest.
The madness of Dogecoin is by no means a blessing for the current currency circle. Under the influence of such an atmosphere, many leeks in the currency circle have completely abandoned the concept of value investment, and the skyrocketing market is even more unfavorable to the development of the currency circle ecology.
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The value of Dogecoin will eventually return to rationality
In the short term, the continuous rise of Dogecoin has gathered great risks, and investors need to keep a clear mind and not take orders easily. If this round of Dogecoin’s market is driven by retail investors, then after there is no funds to continue to enter the market, the retail alliance will naturally loosen, and the price drop is also reasonable.
This article is supported by the Roast Boy Creators Alliance.
