It began as a joke in late 2013 by Jackson Palmer, an Australian software developer. On December 6th, 2013, the first block was mined on the Dogecoin blockchain. In early 2014, Markus left Dogecoin and handed over all development duties to Palmer. Palmer subsequently left Dogecoin in 2015.
🐶What is Dogecoin?🐶
Dogecoin was launched as an attempt to do away with some of the stigma surrounding cryptocurrencies, which were heavily associated with illegal activity on the dark web at the time. Although Dogecoin’s primary use case is for tipping users on Reddit and Twitter.
👨🏫How Does Dogecoin Work?👨🏫
Dogecoin is based off a proof of work cryptocurrency called Luckycoin which is a fork of Litecoin. Luckycoin had a randomized block reward of anywhere between 1 and 1 million tokens, which made it very unprofitable to mine. Dogecoin adopted a similar mining mechanism to purposely keep its price low. Dogecoin had no pre-mine, no ICO, nor any sort of external funding. ⛓Litecoin Reliance ⛓ The Dogecoin network is sustained by Litecoin miners at no additional cost. This is because Dogecoin uses a consensus mechanism called ‘Auxiliary Proof of Work’, which makes merged mining with Litecoin possible. If Litecoin fails, Dogecoin goes down with it, but so long as Litecoin exists, so too will Dogecoin.
💱Dogecoin Ethereum Bridge💱
It is believed that Ethereum founder Vitalik Buterin is the person who anonymously donated thousands of ETH to fund the development of an Ethereum-Dogecoin bridge in 2018. Unfortunately, this bridge was never built, apparently due to a lack of development funds. Thankfully, Ren is in the process of building a Dogecoin-Ethereum bridge.
🤑Dogecoin TikTok Pump🤑
On July 1st 2020, a TikTok user jamezg97 posted a video which explained that if everyone watching the video invested 25$ into Dogecoin, this would correspond to a payout of 10 000 dollars if the price of Dogecoin hit 1$. The video went viral, and the price pumping began, pushing DOGE from 0.0025$USD to 0.005$USD!
📈DOGE Pump & Dump Cycles📉
Dogecoin has had identical pump and dumps in the past, long before Elon Musk was crowned CEO of Dogecoin or TikTok was even a thing. There are many traders who have noticed this repetitive pattern in Dogecoin and have used it to their advantage.
🐳Dogecoin Whales 🐳
According to IntoTheBlock, 60% of Dogecoin’s supply is held by just a handful of wallet addresses, with the largest address holding nearly 18% of the entire supply. That’s over 200 million dollars’ worth of DOGE! These whales are likely Litecoin miners.
💸DOGE Potential in 2021💸
Dogecoin has a lot of potential and will likely surpass its previous all time high in 2021 because of its recognition, star power, and the fact that the whales holding most of the DOGE supply have created a predictable price cycle that gets people to FOMO in.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.