Dogecoin is not going to the moon, then? Dogecoin emerged in 2013 as a joke. It was created by Jackson Palmer and Billy Markus to satirize the growth of altcoins by making the doge internet meme into a cryptocurrency. While it was birthed as a joke, it actually led to some practicality as its large supply and low price facilitated efficient micro-tipping content on social media. It is a derivative of Luckycoin which forked from Litecoin and uses a Scrypt algorithm. Dogecoin has 1 minute block intervals making it faster than other blockchains. Since its inception, the cryptocurrency stayed at a constant value: below one cent. In early January of 2021, each token was worth less than one cent. Then something changed. In late January, when both the GameStop and DogeCoin movements hit their stride, the value of DogeCoin shot up to 7.5 cents, well over a 10-magnification, before sliding down to 2.5 cents.
The meme-cryptocurrency Elon Musk wouldn’t stop tweeting about reached an all-time high in mid-April, crossing 10 cents for the first time. The market cap of DogeCoin — which started as a joke and is literally classified as “a meme coin” — is currently over $27.22 billion. This is the highest-ever for the cryptocurrency, and the result of a semi-ironic movement that’s involved thousands of buyers, tens of thousands of online posters and the world’s richest man, Elon Musk.
While the rally has led to occasional surges, the cryptocurrency isn’t ‘going to the moon,’ anytime soon. In the last 24 hours itself, the currency dipped over -22% according to Coindesk. The market cap, which was $34.97 billion on June 21, has now slid down to $27.22B in just the last 24 hours. While the value of the cryptocurrency hasn’t been rising over the last few weeks and slowly dipping, the major reason for the crash can be attributed to a car.
A car emblazoned with the Dogecoin logo crashed in Saturday’s NASCAR Xfinity Series Race in Nashville. Stefan Parsons, the driver’, had a car embellished with the DOGE Shiba Inu dog crashed into the wall during Stage 2 at Nashville Superspeedway. The car was sponsored by Springates, a manufacturer of auto parts whose CEO is a DOGE enthusiast. Parson escaped unhurt, according to Coindesk. The value of the cryptocurrency did not.
But not all hope is lost. Even as #cryptocrash and #dogecoin trended on Twitter, memes of investors still ‘hodl’ing on is hope that all may not be over.
Elon Musk, Tesla CEO, SpaceX boss and Dogecoin advocate, in a recent interview while at a public signing mentioned, that this cryptocurrency may be the future. In the interview, he says that “There is a good chance that crypto is the future currency of the world. Then the question is which won is it going to be? It could be multiple,” he said.
He then explains the origins of how Dogecoin was invented as a joke, essentially to make fun of cryptocurrency, and that’s the irony, explains Musk. “That the currency that began as a joke, becomes the real currency.”
In the video, he does add that, “Don’t invest your life savings into cryptocurrency. That’s unwise.”