History of Dogecoin
Dogecoin is an amazing meme cryptocurrency in the world of finance. Today even people far from the world of crypto have heard about Dogecoin in one way or another and a question “what is Dogecoin?” so rare as “what is XMR?” . So who is behind the creation of this popular meme coin? Who of the influential people supports it and why? Let’s sort it out together.
In 2013, American programmer Billy Marcus and Australian marketer Jackson Palmer invented the cryptocurrency Dogecoin (DOGE). The official launch took place on December 8 of the same year. The project was conceived as a joke amid the hype around bitcoin. The new coin was created based on the popular Internet meme about the Shiba Inu dog. The image of the dog ended up on the logo of the cryptocurrency and became its symbol.
Already in the first days of its existence Dogecoin came under serious attack. Two weeks after the official launch, hackers broke into the Dogewallet wallet and stole $12k worth of coins. To help those who lost money, the Dogecoin community launched the “SaveDogemas” action to collect donations for the victims. After a month, enough money was raised to cover all the losses.
Technologically, Dogecoin was not new. The cryptocurrency was developed based on the Luckycoin coin, which, in turn, is based on Litecoin. Proof-of-Work algorithm is used to mine Dogecoin. Earlier the reward for each obtained block in the cryptocurrency network was set arbitrarily, but in March 2014 the amount of remuneration for miners became fixed – 250 thousand DOGE. Initially, the developers were going to release 100 billion coins, but later removed this restriction. By September 2018, 116 billion coins had been mined.
The rapid growth of DOGE began after Tesla CEO, Ilon Musk, posted on Twitter. In 2021, the Dogecoin price was $0.087. The entrepreneur called Dogecoin “the people’s currency.” It is noteworthy that the head of Tesla published not only humorous posts. He took Dogecoin seriously and even named the main problem of the digital coin. Crypto world changes so fast and it is too hard to make Dogecoin’s future analysis or XMR price prediction.
In his opinion, the main problem of the project is the high concentration of cryptocurrency on a small number of wallets. The entrepreneur also said that he bought Dogecoin as a gift for his son in 2020.
Ilon Musk’s purchase of the social network Twitter was one of the latest drivers of Dogecoin’s price rise. It is possible that this event will make Dogecoin a full-fledged competitor in the world of cryptocurrencies.