Is Dogecoin a meme coin?

Highlights

• Within cryptocurrencies, there are confusing categories like native tokens, gaming coins, meme coins and so on
• Bitcoin was launched as a serious project, and the intention was to disrupt the traditional payments system
• Dogecoin has earned its identity only as a meme token, perhaps because it was launched with little-intended utility

Dogecoin is back in the limelight and the reason is one of its known supporters, billionaire Elon Musk, now controls the hugely popular social media company, Twitter. Some advocates of Dogecoin, also dubbed DOGE, believe that the token can now find utility in the real world. So far, Dogecoin has been regarded widely as a joke or meme token. In fact, it was one of the first cryptocurrencies in the meme coin category.

For now, Dogecoin’s use within Twitter’s ecosystem is a subject of speculation. The token’s fans claim it can serve as a medium within the social media network for rewarding interesting content. Tweets that attract other users could be awarded DOGE tokens, but how and where these rewards could be redeemed is again debatable. But before DOGE makes this leap, it first needs to overcome the tag of being a ‘meme’ token.

Today, let us explore if Dogecoin is really a meme coin. And, if yes, why?

Dogecoin as meme cryptocurrency

The first major launch in the cryptocurrency world was that of Bitcoin by Satoshi Nakamoto. It was projected as ‘electronic cash’, with the eventual target of serving as a medium of exchange without interferences by any intermediary. Bitcoin’s popularity as a speculative asset paved the way for other cryptocurrencies, often dubbed altcoins, including Ethereum (ETH) and Tether (USDT). While ETH is native to Ethereum and USDT is a stablecoin, DOGE entered the scene as a ‘joke’.

The developers of Dogecoin are said to have released it in response to wide speculations in cryptocurrencies like Bitcoin. Online discussions followed the launch in 2013, and a community of followers on Reddit helped Dogecoin become one of the largest cryptos by market capitalisation. Even though Dogecoin now ranks among the top 10 cryptos, it undeniably started as a ‘joke’.

Data provided by CoinMarketCap.com

Musk and Dogecoin

Around mid-2021, Musk tweeted that he was ‘working with Doge devs’ to make the ecosystem efficient and ‘potentially promising’. This tweet led to an immediate rally in the price of DOGE crypto. Musk has also criticised the energy inefficiency of Bitcoin, which requires too much electricity to record transactions. Musk has time and again sounded optimistic about cryptocurrencies, unlike some popular critics like Warren Buffett.

Takeaway

The wider cryptocurrency world identifies Dogecoin as a ‘meme’ coin, especially because its creators suggested this theme. Dogecoin’s integration in Twitter’s setup, which as of now is speculative, might help the crypto get rid of the meme coin tag.

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