How DogeCoin Came to This World
Back in 2013, Jackson Palmer used to keep only two tabs open on his computer : CoinMarketCap and Doge. The latter was the year’s biggest meme. At one point, he decided to combine them. He posted a comment where he asserted investing in Dogecoin was going to turn out big. As Billy Markus read the comment, he contacted Palmer, and together they worked to make the idea reality. Using the ramifications of Bitcoin, whose fork was Litecoin, whose fork was in turn Luckycoin, they created DogeCoin as the next level fork.
DogeCoin was not launched after planning and devising an innovation. It did not pretend to be complicated, it just flaunted its simple occurrence. And it attracted ample attention, as an alternative to Bitcoin, which was esoteric.
Fast forward to February 2021, the DogeCoin, which was first launched at the price of 0.02 cents, soared to its all-time high of 8.5 cents!
The Cause Behind the 2021 Spike
It all started as investors from a subreddit message board (r/WallStreetBets) used GameStop shorts to the last drop, effectively bringing billion-dollar hedge funds down to their knees. The Wall Street “intelligentsia” rose bravely to their defence, accusing retail investors of having manipulated the market. As a matter of fact though, it was the hedge funds that gambled away investors’ money, as they shorted 140% of the total underlying stock. So it is fair to ask who was the one that actually manipulated the market.
The defence for the hedge funds was in the form of direct protection with bailout funds, as well as indirect actions like the prohibition of the opening of long positions on GameStop shares on a number of retail platforms. Wall Street went even further by suggesting that retail clients should be banned from trades of that kind. The reason: they dealt with matters they didn’t understand, so banning them would actually help them not to “hurt themselves”.
How did retail investors react? Well, they thought: the wise Wall Street guys, savvy and learned as they are, wanted to lecture us on stock market fundamentals? And that on top of our catching the opportunity and defeating hedge funds in their own field? Challenge accepted. We’ll do what it takes to own it.
And so the best candidate for an asset which would attract sneer by Wall Street was understandably Doge. Here is why:
- It started as a joke.
- It used a meme as a logo.
- No innovation was involved in it.
- Its software has not been upgraded since 2015.
- Its low liquidity would allow for a strong rally with comparatively low investment amount.