👙 The Emperor’s New Doge
Market Meditations | January 27, 2023
If you don’t know what Dogecoin is, then I’m not sure where you’ve been. Hailed as the original memestock, $DOGE has had a bumpy ride over the last couple of years. Has it’s powerful advocate moved on or is a resurgence on the cards?
- Dogecoin was created as a joke by two online programmers in 2013, capitalising on an already well-known meme.
- The famous photo of a Shiba Inu dog glancing sideways at the camera comes from a Japanese teacher’s 2010 blog.
- It has its own blockhain and mining system based on Litecoin. But the main difference is scarcity.
- Dogecoin is designed to be ‘intentionally abundant’. Every minute 10,000 new coins are mined.
- However, despite being created for fun, it seriously took off in value in 2021, partially fueled by Elon Musk and the Gamestop short squeeze.
- From January 2021 to May 2021 it did a 100x in value, peaking at over 70 cents a coin.
- But the bubble soon burst and today it trades at around 9 cents each. Is it over?
- Elon Musk hasn’t been as vocal on Twitter recently about Doge, preferring instead to work on a Twitter coin.
- But whale alerts suggest that Dogecoin is being bagged again in large quantities.
- This includes 150 million Doge moved by a Top 20 holder within the last 24 hours.
One analyst believes that for a Dogecoin rally to happen three things are required. A general crypto rally, Elon Musk to publicly back it again, and a technology upgrade for the blockchain.