THE LAST NEWS ABOUT DOG-THEMED COINS: BABYDOGE
Since the asset class’s inception in 2009, Bitcoin has been the most popular and well-known cryptocurrency. Babydoge Hundreds of new cryptocurrencies have been launched as speculative frenzy has erupted in numerous markets over the last few years, with many soaring in price. Some of these younger cryptos have funny names like Dogecoin, Baby Doge, and Shiba Inu, and none of them have any obvious value in the blockchain world. Here’s a look at the backstory of these three cryptos, as well as if they’re worth keeping an eye on as an investor. What is the backstory of these three cryptos, as well as if they’re worth keeping an eye on as an investor?
WHERE DID THE DOG COME FROM?
In December 2013, two software developers invented Dogecoin as a joke, using a Shiba Inu — a Japanese hunting dog breed — as its mascot. What started out as a joke has grown into a fully functional cryptocurrency. Dogecoin, in fact, has the fifth-largest market valuation of any cryptocurrency, with $31 billion as of Aug. 9.
Elon Musk, the CEO of Tesla, is responsible for a large part of Dogecoin’s popularity. For his backing of cryptocurrency, some market participants have called Musk the “Dogefather.” Musk isn’t the only one who thinks Dogecoin is a good idea. Elon Musk instantly agreed, tweeting, “I’ve been saying this for a long,” after billionaire entrepreneur and “Shark Tank” investor Mark Cuban said Dogecoin is the “strongest” cryptocurrency as a means of exchange on CNBC’s “Make It.” All of this conspired to send Dogecoin’s price soaring again again, up nearly 10% in only 24 hours.
Investing in any cryptocurrency is a gamble, but the erstwhile “joke” coin appears to have lasting appeal. The coin does exist as a means of trade, and it has the support of at least two well-known billionaires.
WHAT IS BABYDOGE?
Baby Doge is another crypto with a whimsical side, since it was created as the offspring of Doge by the Dogecoin community.
Baby Doge, unlike other cryptos, isn’t designed to be used as a money. Owners are instead encouraged to just hang on to the coin in the hopes that it will appreciate in value. While Dogecoin, like many other cryptos, has no limit on the number of coins that may be mined, Baby Doge is pre-mined, which means there will be no more.
This makes the currency hyper-deflationary and meant to grow increasingly rare over time, according to the Baby Doge website. Every transaction on the Baby Doge network earns Baby Doge holders a 5% fee, which is paid in Baby Doge. The network keeps an extra 5% of each transaction for liquidity reasons. Although Baby Doge touts its transaction speeds as a selling point for investors, the company is primarily focused on raising its price through a six-pronged strategy. While Baby Doge’s supply is “restricted,” it is capped at 420 quadrillion tokens, which is one of the reasons why its current share price is $0.000000001464, as of Aug. 23.
The theory is that, with such a low share price, early adopters will seek to stockpile large amounts of tokens in the hopes of a future return.
IS BABYDOGE DYING?
Babydoge is one of dog-themed meme coins inspired by Dogecoin, and others include the Shiba Inu, Floki Inu, and Kishu Inu. What started as an online joke, Dogecoin has turned into a serious investment, contributing to charity. It has delivered an incredible 120,000 percent return to investors over the past five years. Many investors hope Babydoge will follow in Dogecoin’s footsteps.
A combination of factors is behind Babydoge’s downfall. Some early investors may be trying to make a profit after Babydoge suppresses the post-exit price. Babydoge’s downfall can also be attributed to John Paulson’s statements, so he predicted the 2008 bubble and made billions of dollars out of that crisis. In a recent Bloomberg interview, the billionaire former hedge fund manager described cryptocurrencies as a worthless bubble. Following Paulson’s comments, other meme coins were also withdrawn.
Dogecoin’s blockbuster gains have put Babydoge on the radar of many of the investors who are looking for the next meme crypto to pop. Babydoge has little practical value, making it a mere speculative investment, but it is trying to stabilize its value through token burning, and some investors have made money with it.