#dogecoininto1dollar is trending on Twitter. I looked at the price of DOGE. It is up 200%! Has DOGE ever been to a dollar? No, but this price demand keeps on resurfacing. DOGE, a meme coin with no use case created in 2013 by Billy Markus and Jackson Palmer, is meant to deliver unexpected things. DOGE was made for fun and so it features the face of the Shiba Inu dog from the popular ‘Doge’ meme as its logo. DOGE created its own community very quickly and it is a preferred cryptocurrency for tipping in many Telegram and Discord channels. People really love DOGE for social tipping. DOGE, Tesla CEO Elon Musk’s favourite cryptocurrency, enjoys a decent market capitalization. The price of this cryptocurrency is generally stable but often we see spikes.
The circulating supply of DOGE is 128 billion and the maximum supply is infinite. DOGE is powered by Litecoin’s Scrypt algorithm and it can be mined simultaneously alongside LTC. This is the reason; mining DOGE is quite popular. DOGE is listed on many exchanges and Binance is one of the most active exchanges. Yes, DOGE goes to the moon often. It is undeniable that DOGE has an active community on Telegram, Twitch, Twitter and Reddit but pumping a widely distributed cryptocurrency is not an easy job. DOGE price responds well to the rumour mill. It got big fame during the 2017 ICO boom and got pumped many times in 2018 due to fake news about ‘Dogeetherum bridge’. The Dogeetherum bridge was publicised by the media as a way to connect both Dogecoin and Ethereum to bring Ethereum’s smart contract ability to DOGE. In July 2019, #DogecoinTikTokChallenge started to trend on TikTok. Suddenly, many popular TikTok users initiated to make viral videos on DOGE with a common appeal to invest in DOGE citing it was undervalued. DOGE was the first cryptocurrency to get a TikTok pump and such ‘get rich’ schemes work for DOGE.
Doge = the crypto GME
GME (GameStop) stock price skyrocketed recently and the name of WallStreetBets also popped up. It is a group of ‘memers’ which was behind GME pump as they took a very long position on the most shorted stock. WallStreetBets has a popular subreddit called r/wallstreetbets which has approximated 4.6 million users now and the community is growing exponentially. The pump effect of GME is still not over. WSB Chairman, a so-called Twitter parody account with 549K followers and the self-proclaimed Chairman of WallStreetBets, tweeted asking whether anybody owned Bitcoin or not. It triggered the shift of focus from stocks to crypto and the new generation of day-traders with the belief to pump anything under the sun jumped onto DOGE. The meme-based coin started to get traction and people began to buy due to FOMO.
Now a different story - $DOGEO Stablecoin
DOGE’s huge supply does not signify its liquidity. The sudden abnormal pumps show that a good portion of the supply generally remains illiquid mysteriously for whatever reasons. There are a few whale groups which play the tricks very efficiently but there is a piece of real news this time. DOGE will soon be available for use as collateral in minting the dollar-pegged $DOGEO stable coin at OpenDAO in collaboration with Ren. OpenDAO provides the bridge to bring assets to on-chain infrastructure. They are bringing DOGE to Ethereum blockchain as a wrapped token in a non-custodial manner. Welcome to the era of DOGE DeFi! DOGE will be used as collateral to mint a dollar-pegged stablecoin (DOGEO). It should be like crypto collateral-based stablecoin DAI. Ultimately the whole ecosystem will enable high-level lending and borrowing activity involving DOGE.
There is no doubt that Ethereum is the preferred value settlement blockchain layer today and DOGE’s exposure to Ethereum DeFi will bring good store-of-value to it. The pump-dump events will keep on happening but DOGE has proved that a meme coin can survive the test of time. A hard-core DOGE believer will deposit his DOGE as collateral and mint DOGEO to buy more DOGE or take part in the yield farming activity. The jest of DOGE will be converted into financial power. Let’s see what it brings but enjoy the pump now.
Note: This post was first published here for Cryptowriter in association with voice.com.