Dog coins have become too popular recently.After a recent surge, the initial issuance price of this virtual currency has risen by over 900 times
Dog coins have become too popular recently.
After a recent surge, the initial issuance price of this virtual currency has risen by over 900 times. Various cases of sudden wealth have emerged one after another, which has also led more and more people to pay attention to this "firewood dog".
Looking back, the birth of this virtual currency is not as full of technological innovation as Bitcoin, but more like a joke.
In 2013, a picture of the Japanese Chaigou "" became popular online. Netizens refer to it as Doge and have created countless emoticons that have been posted on various website forums. This dog has become a big internet celebrity.
That same year, Bitcoin began to soar, and virtual currency began to become a hot topic in the market.
Jackson Palmer, an employee of Adobe Australia, is also one of the followers of Bitcoin. Faced with the continuous rise of Bitcoin, one day he couldn't help but joke on Twitter: "It's time to create a new virtual currency - Dogecoin
Unexpectedly, his joke gained the support of many netizens. So, Palmer simply registered the domain name of Dogecoin.com and PS created a gold coin image with Doge's emoji on it.
Technical support will be here soon. American programmer Billy Markus noticed Palmer's joke and later became the first developer of Dogcoin. With his help, the dog coin has transformed from a joke to a reality.
It can be imagined that there won't be too much technological innovation in such a randomly launched project. If Bitcoin is the earliest practice of blockchain and has created a wave of decentralization, Doggie Coin has no technical highlights. Even mining algorithms are directly copied from others - Doggie Coin directly uses the Scrypt algorithm, a mature scheme of Litecoin.
Although there is no technology, no endorsement, and is often referred to as a typical 'air coin', dog coins have one biggest feature - they are cheap, with an initial price of only $0.000559 per coin. Even in 2020, the highest price of a dog coin was only $0.004994.
Behind the price of cabbage is the huge issuance of dog coins. Initially, the issuance of dog coins was limited to 100 billion yuan, but later it was decided to issue them without restrictions. Currently, Gougou Coin issues an additional 5.2 billion yuan annually, with an annual inflation rate of around 5%. The total amount currently exceeds 128.7 billion yuan.
The price is cheap and the quantity is sufficient, and Gougou Coin quickly became an active community that many celebrity projects cannot match. Reddit, a well-known overseas forum, has more than 130000 members in its dogcoin section, second only to Bitcoin, Ethereum and Litecoin. This forum is one of the important battlefields of American online culture, and netizens' interest in Dogcoin is also driving its development.
So, for a period of time, Gougou Coin became an online tip tool for netizens. For example, when you see a joke on a forum that is very funny, netizens can freely offer a few dog coins as a reward.
In this way, despite the ups and downs of the market, Gougou Coin has truly stood firm for so many years. Although there have been several major rises, they also quickly fell back without causing too much turbulence.
However, everything changed because of a person named Musk.
As the CEO of Tesla, this internet celebrity likes to express his appreciation and admiration for Dogcoin online. Every time he speaks up, Dogcoin will skyrocket. Musk once posted that Dogcoin is his favorite virtual currency, and also changed his Twitter account information to "former CEO of Dogcoin".
Driven by Musk, Gougou Coin has become a star in the coin industry. The big shots all think that dog coins have a future, why wait? After buying and selling, Gougou Coin finally ushered in the largest outbreak in history. If calculated in Chinese yuan, it has risen from less than a penny at the beginning to around 3.2 yuan.
There are actually traces to trace the recent surge in dog coins.
Firstly, driven by opinion leaders such as Musk, Dogcoin has gained unprecedented attention. Newcomers are buying one after another, and the prices are getting higher and higher. Essentially, this is a type of "celebrity effect" that triggers copycat speculation.
Secondly, the post-90s and even post-2000s have been wanting to participate in the coin market for a long time, but Bitcoin is too expensive and the cost of participation is too high. Dogcoin, a counterfeit currency, is cheap and can easily buy hundreds of thousands of yuan. They can sit in their hands and wait for appreciation, but they don't have to worry about losing money.
Thirdly, there must be a large amount of capital involved in the sharp rise and fall, in coordination with public opinion, to help the continuous rise of the currency price, and then to cash out at high levels, which has been tried and tested repeatedly. This situation is commonly known as cutting leeks.
With these reasons mentioned above, it is not difficult to understand the sharp rise and fall of the market.
In fact, even the founder of Gougou Coin was surprised by this wave of market trends. Marcus once published an open letter on Reddit expressing his confusion about the current development trend of Dogcoin. Marcus stated that by 2015, when the development direction of the dog coin industry went against his expectations, he had withdrawn from the dog coin project. At that time, Marcus had just been laid off by the company, so he even sold out all his dog coins and bought a second-hand Honda Civic.
This plot is also like a joke. At the moment when the founder left, many people became wealthy overnight relying on dog coins. Whether it's Reddit or domestic forums, there are constantly users popping up, claiming that they have made over a million dollars in profits due to Dogcoin, and even financial freedom.
What's even more exaggerated is that with the popularity of dog coins, a batch of dog coin concept coins, such as pig coins and monkey coins, have also appeared in the market, and there are really people buying and selling them. The most popular one among them is called Chaigou Coin, also known as ShibaInu in English and nicknamed DogecoinKiller. Even if you hit a hot spot, it can soar.
Previously, Tesla's independent director and former Chief Investment Officer of the Japan Pension Fund, Hiroshi Mizuno, stated on Twitter: "If investors want to trade Shib (Chaigou) in the short term, they can. However, do not consider doing the same thing with Shiba (Chaigou)." As a result, Musk replied below his tweet: "I am looking for a Chaigou." Chaigou then surged. On May 8, 2021, the price of Chaigou coin skyrocketed by over 251%, with a trading volume of 40.3 billion yuan.
I don't know when this crazy market will end. But Jesse Livermore once said that speculation is as old as a hill. So, since ancient times, speculation has not changed, what has changed is only the object of speculation.
A netizen said it well: Initially, Dogcoin was born to mock virtual currencies such as Bitcoin, but as a result, I eventually became the person I dislike the most
Column Editor in Chief: Zhang Yang Text Editor: Zhang Yang Inscription Image Source: Tuchong Creative Image Editor: Da Xi
Source: Author: Zhang Yang, Jiang Shasha, Li Tongtong
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