No funny business: Dogecoin’s journey from a joke to US$41 billion cryptocurrency

Summary

  • 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."

Also Read: Cryptocurrency Boom: Blockchain Stocks to Look for In 2021

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.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK