- A “joke” cryptocurrency that became all too serious. Dogecoin (DOGE) was inspired by a popular meme, but it eventually became a fully functional coin with a large community and a hefty market capitalization.
|Market Cap||Volume 24h||Circulating Supply|
Dogecoin came into existence as an attempt to popularize a “lighter” approach to cryptocurrencies among the audience that was fed up with technicalities and stories of controversies. By choosing a Doge meme of the Shiba Inu dog as the coin’s mascot, its creators Billy Markus and Jackson Palmer wanted to put the fun back in the world of cryptos, while offering the same level of functionalities as the bigger and more serious players. This means that Dogecoin can be used for peer-to-peer payment, conversion, trading or mining, just like its more “serious” counterparts.
The team behind Dogecoin launched its creation in December 2013, using the existing Luckycoin as the technical foundation for their project. Luckycoin itself was a fork of the Litecoin cryptocurrency. At the heart of transactions made with DOGE lies blockchain which powers decentralized networks used for making transactions without intermediaries. The nodes in the network check the validity of transactions and receive rewards for their work in form of new Dogecoins, i.e. the coins are mined by the members of the community.
New transactions involving Dogecoin are verified each minute, allowing it to offer its users a faster processing time compared to Litecoin, Bitcoin and other popular coins. The unlimited coin supply and fast transaction speeds made Dogecoin a popular choice for those who want to make smaller transactions, give charity donations or tips. The community built around the coin established the Dogecoin Foundation as a non-profit organization that promotes its use via organization and support for charitable actions, helping the Dogecoin strengthen its friendly image among the crypto enthusiasts.
At the same time, Dogecoin experienced issues with its image when it comes to security. Back in December 2014, the hackers stole about 21 million Dogecoins (at that time, around 12,000 USD). The community responded by collecting donations for the users who had their coins stolen. In September 2017, one of the members of the Dogecoin community was arrested for fraud and theft of the user’s money via a Dogecoin exchange he established for that purpose.
As of October 2018, Dogecoin’s market capitalization stood at USD 653 million, with 116 billion DOGE coins in circulation. The coin had its all-time high in early 2018 when its market cap value came close to two billion USD. In any case, Dogecoin remains the most serious contender among the joke cryptocurrencies, leaving its competitors such as Garlicoin and Jesus Coin far behind in terms of popularity.