Dog coins have harvested countless wealth, but you still don't know what they are

Cryptocurrency is not essentially a currency/ Figure insect creativityAfter experiencing a roller coaster ride of ups and downs, the cryptocurrency Dogecoin has recently become the 'nouveau riche' in the currency industry. However, cryptocurrency is only a "plaything" for investment and profit after all

Cryptocurrency is not essentially a currency/ Figure insect creativity

After experiencing a roller coaster ride of ups and downs, the cryptocurrency Dogecoin has recently become the 'nouveau riche' in the currency industry. However, cryptocurrency is only a "plaything" for investment and profit after all. If you can't see the essence of cryptocurrency and become obsessed with it, it will only become a flash of fireworks after the foam bursts.

It used to be just a joke, but now it's hard to climb up

The myth of wealth creation in the coin circle can always leave many people dumbfounded, but this time, what has made countless players doubt life is not even Bitcoin, which even street mahjong masters know:

On April 15th, the price of cryptocurrency Dogecoin began to skyrocket, with a daily increase of over 200%. Within a week, the price surged nearly fivefold, reaching a maximum market value of $50 billion (approximately 324.2 billion yuan), surpassing the market value of many mainstream banks in Europe and America.

The market value of Gougou Coin once surpassed internationally renowned banks such as HSBC and Barclays/ Unsplash

April 20th is undoubtedly a "glorious moment" for fans of Doggie Coins: as people's emotions rise, Doggie Coins once again embark on a roller coaster mode, with prices rising to a maximum of $0.423840 per coin.

At the same time, "DogeDay" became a popular online term of the day, with 181000 tweets with # Doge tags on Twitter, ranking first on the day. Some even urged dog coin fans on Twitter to increase their purchasing power and strive to increase their prices to $1 per coin.

On "Dog Day", enthusiastic fans called for the price of dog coins to continue to be pushed up/ Twitter@InteralCool

The fanaticism of dog coin even led to the collapse of cryptocurrency trading systems such as Robin Hood.

On one hand, Dogcoin fans became wealthy overnight, while on the other hand, Bitcoin holders were buried overnight: since multiple countries successively announced bans on the use of cryptocurrencies for online circulation, some traditional cryptocurrencies have been continuously diving since April 16th.

Among them, the cliff like decline of Bitcoin is the most noteworthy. As of 4pm Beijing time on April 22nd, the price of Bitcoin has dropped to $53414.39 per coin (approximately 344600 RMB), which is a huge difference from the historical high of nearly $64000 per coin six days ago.

The mainstream cryptocurrency fell sharply across the board, and only the dog coin rose against the market/ Twitter@micnike2

Behind the sharp fall and rise of cryptocurrency prices, it is natural that countless foam are supporting this crazy roller coaster. People enjoy the excitement on the roller coaster, but also indirectly bear the risk after the foam burst.

A "coin circle upstart" who relies on traffic to gain fame

Although the volatility of Dogcoin is very obvious, its momentum has already crushed the "big brother" Bitcoin, Ethereum, and others, ranking fifth in the total market value of cryptocurrencies.

Some people may say that severe fluctuations in the currency market are a normal phenomenon, and the gains in recent days are not significant.

But if time goes on, the increase in dog coins can shock young people who want to become rich and developed for ten thousand years:

Since 2021, the highest increase in dog coins has reached 9977%; If we push forward a bit further, starting from the low point of March 13, 2020- $0.001158 per coin, the price of a dog coin has risen 405 times.

And the path of this "coin circle upstart"'s "soaring to success" counterattack still starts from an emoticon pack a few years ago.

Make sure there is at least one emoticon package related to it on your phone.

In 2013, the market value of Bitcoin skyrocketed, with each coin rising from its previous worthless value to several tens of dollars.

In the same year, there was a "pop bar" accident between the two well-known foreign social forums 4chan and Reddit: a group of 4chan netizens posted a facial photo of the Japanese dog Kabosu, which had been widely circulated three years ago, on various pictures related to American elements.

Overnight, these images exploded on the Reddit forum; Afterwards, various emoticons about Doge with no sense of discord were widely circulated around the world.

Meanwhile, former IBM software engineer Billy Markus is researching a new type of electronic currency. When he saw Bitcoin speculators enjoying it, he pulled in his friend Jackson Palmer from Adobe Systems Marketing in Australia.

In this way, the two people, with the idea of dawdling on the hot spot, used the code of another cryptocurrency, Litecoin, to create a "copycat" dog coin.

In order to maximize Doge's traffic, Marcus also purchased the domain name of Dogecoin.com to benchmark the Bitcoin bitcoin.com official website; In order to mock Bitcoin, he even changed his Twitter name to ShibetoshiNakaoto, using it to mock Bitcoin's founder Satoshi Nakamoto.

Even when compared to Bitcoin, Dogcoin is a genuine counterfeit. The 'wow' next to Doge is very ironic/ GettyImages

After everything is ready, Gougou Coin is officially launched.

Initially, Marcus' vision for Dogcoin was to make it a "faster and more 'interesting' alternative to Bitcoin," so he did not set a total circulation - which was completely different from the 21 million set at the time of Bitcoin's issuance.

But with the help of social media forum Reddit, netizens who still haven't recovered in Doge are like discovering a new continent, with exponential growth in traffic - half a month later, Dogcoin became the seventh largest virtual currency in the world at that time.

Seeing this far beyond expectations explosive popularity, Palmer may have many question marks.

As of April 2021, there are a total of 129 billion dog coins in circulation worldwide. Some foreign media believe that this may explain why a dog coin is worth only 30 cents (about 1.9 yuan), while a Bitcoin is worth 54000 US dollars (about 350000 yuan).

Invisible Pusher: Social Media and Musk

As the big brother of cryptocurrencies, Bitcoin's functions have shifted from investment to real life consumption in certain countries and regions.

In June 2020, Coca Cola Amatil, the largest non-alcoholic beverage dealer in the Asia Pacific region under Coca Cola, cooperated with Centrapay, a digital asset management company, to open the bitcoin payment function on 2000 vending machine machines in Australia and New Zealand, so that consumers can use bitcoin scanning code to pay for drinks.

In early years, Bitcoin could be used in Germany to pay bills for electricity, gas, heating, and drinking water, as well as tuition and miscellaneous expenses for attending university.

But dog coins do not have much practical use in the real world. In addition to being used for investment, the most popular use of dog coins is to reward online artists on social media platforms.

It is precisely because online communities are booming that Gougou Coin is particularly beloved by netizens.

According to foreign media reports, on the eve of the 2014 Sochi Winter Olympics, the online organization "Dogcoin Community" established a fundraising event to raise $50000 for the Jamaican sled team to participate in the Winter Olympics, and later raised funds for Indian Winter Olympics athlete Shiva Keshavan. Afterwards, the exchange rate of Gougou Coin increased by nearly 50% compared to Special Coin.

Afterwards, the "Dog Coin Community" launched two more charity fundraising events that year, including raising $30000 in dog coins to support water conservation on the eve of World Water Day, and investing $55000 (equivalent to 67.8 million dog coins at the time) to promote the use of dog coins on NASCAR driver Josh Wise's racing car.

The earliest promotional activities for Dogcoin were all initiated online/ Wikipedia

Afterwards, Gougou Coin lived a lukewarm life in the currency circle without much fluctuation until 2019.

Dogcoin may be my favorite cryptocurrency, "Elon Musk tweeted on April 2, 2019." It's so cool

This tweet actually echoes an online vote on the "official" Twitter account of Dog Coin a day ago, asking who would become the best CEO for this cryptocurrency - if needed. Among more than 4000 participants, Musk's vote rate was higher than the other three well-known figures engaged in cryptocurrency.

Musk is widely regarded as the "initiator" of the dog coin with fire/ Reuters

A year later, a TikTok short video began to completely change the status of dog coins in the coin industry.

Dogcoin is actually worthless, "TikTok user James Galante said in a video with over a million views." TikTok has 800 million users. Once the market value of Dogcoin reaches $1, you will have $10000. Tell everyone you know, let's all get rich

With the help of celebrities, the price of dog coins began to rise slightly, towards the goal of $1 per coin.

After 2021, Musk's several tweets undoubtedly served as catalysts for pushing dog coins to the skies. For example, when Musk tweeted on February 4th that Dogcoin was "the cryptocurrency of the people," the market value of Dogcoin increased by 60%.

On April 15, Musk posted the work DogBarkingattheMoon by the Spanish surrealist painter Joan Mir in 1926, and sent a mysterious tweet with the content of "DogBarkingattheMoon":

I believe everyone can guess what happened after this.

Here we need to explain to everyone that 'moon (ing)' is a slang term related to cryptocurrencies on social media. If someone says' moon (ing) 'for a certain coin, it means that the price of this coin is experiencing a peak.

Although Musk's series of comments have driven dog coins to a peak, the world's second richest man does not hold any dog coins. Tesla, his recently troubled electric vehicle brand, holds $1.5 billion worth of Bitcoin.

It's all foam, just a flash of fireworks

Elon Musk's support is a big deal. "In Reddit's Dogecoin version (R/Dogecoin), 22-year-old Tanner Sims invested $500 in holding dog coins last year, and now he has earned $16000. This gave me a lot of confidence

An investor claimed in an interview with Newsweek that he invested all of his savings of approximately $190000 in Dogcoin in February of this year. Two months later, the investment growth exceeded $2 million.

Since Musk started selling and becoming popular for Doggie Coin in January this year, Reddit has become the world's largest and most fanatical online communication center for financial retail investors, with a large number of users claiming to have made millions as a result. According to Forbes Business magazine in the United States, during the week of the sharp rise in Dogcoin alone, Reddit's membership surged by 25%.

Mad retail investors who thrive overnight on dog coins should be most grateful to Reddit/ Unsplash

But some people have found that there seems to be a correlation between the Reddit community and the assets of Dogcoin: as the price of Dogcoin continues to rise, it will trigger greater discussion and interest on Reddit, ultimately driving more investment in Dogcoin, and then repeating, repeating, and repeating.

Indeed, once Dogcoin skyrockets, it will inevitably trigger discussions among forum members all night long, and then use social media such as Twitter as a push to call on more retail investors to achieve "common prosperity" together... How can this "self strengthening" feedback loop inexplicably have a smell of pyramid schemes?

This is the most transparent pull up and dump scam I have ever seen, although I'm not sure we can even call it a scam because everyone involved knows it's a scam. "Glen Goodman, a senior British trader and author of the CryptoTrader, warned people in an interview with Forbes Business magazine not to jump into the dogcoin carriage.

And Musk's series of obvious "buy in" tweets have also made some cryptocurrency investors worried. Nick Carter, co founder of Castle Island Ventures, called it a "speculative tool" and warned retail investors that "dog coins will lose money".

The rise of dog coins is a classic example of the 'big fool theory' working, "investment analyst David Kimberley said in an interview with Consumer News and Business Channel in the United States

Contemporary coin speculators look at Musk Twitter no less than a few years ago when they learned about the situation in the United States and had to keep a close eye on Trump Twitter/ Reuters

But Markus, the founder of Dogcoin, did not benefit from its rapid growth. According to foreign media reports, Marcus sold all his dog coins and used the money he earned to buy a Honda Civic when he lost his job in 2015. Four years later, he deleted all tweets and YouTube videos and disappeared from the internet.

The abnormal behavior of cryptocurrency has long been closely monitored by the financial departments of multiple countries.

On April 14th, Federal Reserve Chairman Jay Powell publicly criticized cryptocurrency, stating that cryptocurrency is actually a speculative tool mainly used to bet on price increases and has not yet reached the status of a payment mechanism. A month ago, US Treasury Secretary Janet Yellen believed that cryptocurrencies such as Bitcoin were the main drivers of "illegal financing" and warned that they were "a very inefficient way of transferring funds".

According to CoinDesk, after Trkiye announced that cryptocurrency was illegal, the South Korean Government Policy Coordination Office also announced on April 19 that it would join several government departments to crack down on all "illegal activities involving virtual assets".

Several years ago, China's regulatory authorities also explicitly stated that cryptocurrencies such as Bitcoin may have high speculative risks, high money laundering risks, and the risk of being exploited by illegal criminals or organizations.

On March 19th of this year, the Supreme People's Procuratorate and the People's Bank of China jointly released six typical cases of punishing money laundering crimes, one of which was the use of virtual currencies such as Bitcoin for fraud and money laundering.

"There was a phenomenon in the financial crisis in 2008 that some financial products that were separated from the real economy would have problems, so although it is not yet possible to make qualitative conclusions (such as Bitcoin), be careful." At this year's Boao Forum for Asia, Zhou Xiaochuan, former president of the People's Bank of China, said that both digital money and digital assets should be closely integrated with the real economy to serve the real economy.

In the endless online discussions on Reddit, some people are gradually awakening.

In a recent Reddit post, there was an animation of a Doge floating in a space station wearing a spacesuit, with a line written below him: "I don't know what I'm doing

These coins are a great plaything, "said Toben Blalock, the author of the post, who is worried about the big discussions on R/Docoin these days." But many people are investing their life savings, and I think it's a bad idea now

Indeed, the cryptocurrency market is like a game of beating drums and passing flowers: in the cryptocurrency market, a small group of players typically hold a large amount of circulating 'currency'. When anyone sells all the "money" he holds, the foam will eventually burst and the whole market will collapse. But there is no criterion for the foam to burst. No one knows when the drum will suddenly stop. Naturally, no one wants to be the "doer" who gets the flowers after the drum stops suddenly.

If you can't see the foam behind cryptocurrency, only speculators will be sad after it bursts/ Figure insect creativity

Anyway, the beautiful vision of quickly becoming rich through cryptocurrency will always be just a risk game between cutting and being cut. Any player who jumps on this cart will become a vulnerable victim after the foam bursts if he cannot see the essence of cryptocurrency and is obsessed with greed.

After all, licking a dog to the end results in nothing.

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[2] Dog coins from deity to fall, but 24 hours. Financial partners. 2021-4-18

[3] Revelation of Bitcoin: speculation, foam and anti humanity. 36 krypton. April 18, 2021

[4] Zhou Xiaochuan: There are still doubts about the benefits of digital assets for the real economy. Observer Network. 2021-4-20

[5] Behind the "Top Case in the Coin Circle" of 40 Billion RMB, Virtual Currency Becomes a "New Channel" for Cross border Money Laundering. China Newsweek, 2021-4-25

[6]Dogecoin,ElonMuskAndtheLatestRedditMania.Forbes.2020-4-21

[7]LetsAllGetRichTeenTikTokTradersWantToSendJokeBitcoinRivalDogecoinToTheMoon.Forbes.2020-7-9

Author | Liang Hao

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