Dogecoin: Heads or Tails?

Written by Edward Gonzales

May 11, 2021

Dogecoin is no doubt one of the top trending coins right now. Much of its recent price fluctuation is due to the hype surrounding the coin. A lot of new investors and even some long term crypto investors have made an incredible profit with Dogecoin. For every one trader or investor that made profits with Doge, however, there were ten or more traders and investors that lost money. We have talked about pump and dump schemes before. Let’s delete all the hype and discuss some of the facts about Doge.

All great crypto projects start with a white paper, right? What is a white paper or white page? This is usually a document that will outline the project’s objective, what problems it intends to solve and how it will solve them. It may even outline a product or service. Let’s review Dogecoin’s white page really quickly.

There isn’t one. 

Dogecoin was created on December 6th 2013 and has reached a 1,000,000,000 (one billion dollar) market cap without having an official white paper or a product. It started out as a joke coin featuring a popular meme animal at the time. This was the original statement for the Dogecoin website back when it was created:

What is Dogecoin?*

Dogecoin is a decentralized, peer-to-peer digital currency that enables you to easily send money online. Think of it as “the internet currency.”

What’s with Dogecoin and the dog?

“Doge” is our fun, friendly mascot! The Shiba Inu is a Japanese breed of dog that was popularized as an online meme and represents Dogecoin.

The fun and friendly internet currency.

Dogecoin sets itself apart from other digital currencies with an amazing, vibrant community made up of friendly folks just like you.

How to get started with Dogecoin.

Setting up a Dogecoin wallet is as easy as 1, 2, 3. Seriously! Check out our Getting Started guide below.

Once you’re done, join in on the fun as part of our growing community!

We’re a helpful bunch of people and we’ll answer any questions that you throw at us!” (sic)

That was all the information we had about Dogecoin for a long time, and even to this day there is not a clear mission statement from any developer. It’s just “internet money.” The coin has been among the top 10 and even the top 100 cryptocurrencies by market cap for years. It has recently been popularized by internet meme culture. Elon Musk is believed to have brought an alarming amount of new i popularity to the coin. Dogecoin had a very low trading volume until Elon first tweeted “One word: Doge” – this was the first time the techno king had mentioned Dogecoin.

It was the same day of December 20th, 2020 where he also mentioned Bitcoin for the first time on his Twitter account with several cryptocurrency references immediately following, including the above Doge tweet. 

Since then a lot of things have changed in the cryptocurrency markets. Many coins have become very bullish. Elon has tweeted out a few times mentioning Dogecoin since then, and every mention of the coin by the internet meme god has returned a usual +20% or greater for the coin. Overall, the coin is up over 5,000% for the year.

Elon musk recently mentioned on his Twitter account that SpaceX will launch a satellite named Doge-1 to the moon next year. Elon claims the mission will be paid for in Dogecoin. 

It is unknown how much Dogecoin is held by Elon Musk, but it is observable on the blockchain that most of the Dogecoin in existence is held in just a few wallets. In fact we’ve got some interesting details about these wallets and how much coins they hold.

One single wallet holds 36,711,939,081 DOGE which is 28.36% of all Dogecoins. That is equivalent to 16,673,813,922 USD at the time of this publication. There are another nine wallet addresses that hold a combined total of 21,052,220,889 DOGE and accounts for 16.26% of all Dogecoins. At the time of writing this, those coins were equivalent to 9,561,489,328 USD. This means the top ten wallet addresses combined account for 44.62% of all Dogecoins! Anyone can view this information as it is stored on a blockchain. The problem is most newcomers to cryptocurrency do not take the time to research their investments. There are interesting statistics to look into that really make you question “How much value does this coin really have?” A better question would be “What happens when they sell their coins?” We will leave that up to you to determine. 

Hopefully this was an eye opener for you. Not all coins have value. Just because there is money to be made by trading a coin, does not mean you should be investing in it or the long term or for the future. Research each and every coin before you choose to invest in it. Know the risks so you can weigh the rewards. Congratulations to everyone who made money trading Dogecoin. 

By viewing any material or using the information within this publication you understand that this is general education material and you can not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here. Trading cryptocurrency has potential rewards, but also potential risks. You must be aware of the risks and be willing to accept them in order to invest in the markets. Only trade with funds you can afford to lose. This publication is neither a solicitation nor an offer to buy/sell cryptocurrency or other financial assets. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

Written by Edward Gonzales © Crypto University 2021

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