In the middle of this month, Dogecoin (DOGE) has exceeded the capitalization of Polkadot (DOT), and thus entered the TOP-10 world cryptocurrencies. At the time of writing this post, DOGE’s capitalization has exceeded $8 billion, in turn, outperforming its predecessor DOT by almost $1 billion.
Such a precedent, when Shitcoin (DOGE) bypasses the fundamentally strong Polkadot coin in terms of capitalization, on the basis of the blockchain of which many other tokens are built, motivated us to write this informative post.
What is Shitcoin❓
Shitcoin is a specific cryptocurrency token with no specific value, precise use case, or sustainable demand. Such coins do not have the characteristics of real cryptocurrencies (functionality, strong investor interest, legitimacy, or specific development plans).
Popular Shitcoins: Tamadoge (TAMA), Battle Infinity (IBAT), Lucky Block (LBLOCK), Dogecoin (DOGE), Shiba Inu (SHIB).
What features do they have❓
🔵 High speculativeness. Often, the volatility of such coins is much higher than that of classic tokens;
⚪️ Having a cult following. The anomalous promotion of such coins by certain individuals can be observed on Twitter, Discord, Facebook and Reddit. Example – SHIBArmy;
🔵 Poor website/landing page. When browsing the website where the coin is presented, you can often come across a lack of specifics, errors in technical documentation, browser warnings;
⚪️ Lack of project and data transparency. A cryptocurrency is often considered a Shitcoin if information about its creators is hidden or there is no mention of successful launches or expertise.
Now let’s talk about the history of one of the most popular Shitcoins, namely the well-known Dogecoin (DOGE).
What is Dogecoin and who created it ❓
Dogecoin was launched by programmers Billy Markus and Jackson Palmer in 2013. The creators launched the coin with the goal of making fun of the altcoin explosion at the time.
At that time, the DOGE coin was considered a satire or a joke, and did not mean the ability to compete in the market. However, becoming a meme coin, it gained its share of popularity on social networks, as its low cost of $0.000232 used for small online transactions with minimal fees.
A separate stage in the history of DOGE is the connection of this coin with Elon Musk. The entrepreneur supported the cryptocurrency by promoting it in the social networks and propagating the term “people’s crypto”.
Musk is also known for his negative influence on DOGE. After a promising rise in price from $0.004681 at the beginning of 2021 to $0.7376 on May 8 of the same year, the coin rapidly declined in price when Musk appeared on the TV show Saturday Night Live and described the coin in a new way – “hustle”.
What about Dogecoin prospects ❓
Speaking of the outlook, it is worth mentioning that recently Dogecoin became the second largest PoW-based blockchain after Bitcoin by market capitalization, following the Ethereum Merge update on September 15th. At the same time, the current drop in the price of ETH after the transition has doubled the investor’s attention to DOGE.
An asset like Dogecoin is highly influenced by the social media community as well as individuals. The price of a coin can go up or down after the statements of famous people such as Elon Musk. Tracking such trends and comments, many traders buy or sell the coin. This factor creates a high volatility of the asset, which in turn can be regarded as a prospect in short-term or medium-term trading.
In addition to the aforementioned Elon Musk, billionaire Mark Cuban pointed out that the coin was “strongest” when it was used as a medium of exchange. It was also reported that DOGE was adopted as a payment method by the Dallas Mavericks, and this boosted the company’s sales. At the same time, the use of DOGE as a payment method was also mentioned in the context of Tesla’s Cyberwhistle sale.
🧐What about you, dear followers? Do you think DOGE will continue being able to compete with strong crypto assets in the future?