- Dogecoin was founded as a parody in 2013
- It has rallied by 7133% in 20 days of April
- Once a meme, it is now worth US$41 billion
Global meme-makers may have made thousands of dollars using the social media platforms – Instagram, Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).
But two software engineer friends – Billy Markus and Jackson Palmer – had a unique idea and they ended up making a meme that is now worth US$41 billion – surpassing many large cap companies listed on global stock exchanges.
In 2013, Mr Markus and Mr Palmer, set out to create a parody of the cryptocurrency. Deemed worthless, it was supposed to be traded just for fun.
However, fast forward to 2021, the Dogecoin has surged by a mindboggling 72.33 times or 7133%, in less than four months – as it was trading around US$0.33 on Tuesday.
Source: Kalkine Research
In the 20 days of April 2021 alone, the cryptocurrency has surged 6.2 times.
Earlier this year, Dogecoin received a ringing endorsement from one of the richest businessmen in the world – Elon Musk. “Dogecoin is the people’s crypto,” Musk wrote on the microblogging website – Twitter – on 4 February 2021. Since then, Mr Musk has been constantly tweeting praises about the Dogecoin.
This surely helped the prospects of the cryptocurrency.
The surge in the Dogecoin is also being linked to the news that Kronos, a Californian air purification technology firm, has purchased about 600 million Dogecoin Cash. Even as two cryptocurrencies are linked, Dogecoin Cash and Dogecoin are not same.
While Dogecoin is a cryptocurrency – or so to say, Dogecoin Cash calls itself a "community-driven project created by a group of passionate Dogecoin enthusiasts."
However, started as parody, many experts are worried about the rally in the Dogecoin. Some suggest that the Dogecoin enthusiasts might be following “the greater fool theory”. According to this theory, any investment at any value is a good investment, till you find a “greater fool” to buy it at even higher prices.