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Dogecoin ( or ,
Abbreviation An abbreviation (from Latin ''brevis'', meaning ''short'') is a shortened form of a word or phrase, by any method. It may consist of a group of letters or words taken from the full version of the word or phrase; for example, the word ''abbrevia ...
: DOGE;
sign A sign is an object, quality, event, or entity whose presence or occurrence indicates the probable presence or occurrence of something else. A natural sign bears a causal relation to its object—for instance, thunder is a sign of storm, or ...
: Ð) is a
cryptocurrency A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It i ...
created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a "joke", making fun of the wild speculation in cryptocurrencies at the time. It is considered both the first " meme coin", and, more specifically, the first "dog coin". Despite its satirical nature, some consider it a legitimate investment prospect. Dogecoin features the face of the
Shiba Inu The is a breed of hunting dog from Japan. A small-to-medium breed, it is the smallest of the six original and distinct spitz breeds of dog native to Japan. Its name literally translates to "firewood dog". A small, alert, and agile dog that c ...
dog from the "
doge A doge ( , ; plural dogi or doges) was an elected lord and head of state in several Italian city-states, notably Venice and Genoa, during the medieval and renaissance periods. Such states are referred to as " crowned republics". Etymology The ...
"
meme A meme ( ) is an idea, behavior, or style that spreads by means of imitation from person to person within a culture and often carries symbolic meaning representing a particular phenomenon or theme. A meme acts as a unit for carrying cultural ...
as its logo and namesake.''A History of Dogecoin''
. Dogecoin Analysis Report. Social Science Research Network (SSRN). Accessed December 28, 2017.
It was introduced on December 6, 2013, and quickly developed its own
online community An online community, also called an internet community or web community, is a community whose members interact with each other primarily via the Internet. Members of the community usually share common interests. For many, online communities may fe ...
, reaching a market capitalization of over $85 billion on May 5, 2021. It is the current
shirt sponsor In association football, kit (also referred to as a strip or uniform) is the standard equipment and attire worn by players. The sport's rules specify the minimum kit which a player must use, and also prohibit the use of anything that is dangerou ...
of
Watford Football Club Watford Football Club is an English professional football club based in Watford, Hertfordshire. They play in the EFL Championship, the second tier of English football. The club’s original foundation is 1881, aligned with that of its anteced ...
. Dogecoin.com promotes the currency as the "fun and friendly Internet currency", referencing its origins as a "joke". Software engineers Billy Markus and Jackson Palmer launched the satirical cryptocurrency as a way to make fun of
Bitcoin Bitcoin (abbreviation: BTC; sign: ₿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distr ...
and the many other cryptocurrencies boasting grand plans to take over the world. With the help of
Reddit Reddit (; stylized in all lowercase as reddit) is an American social news aggregation, content rating, and discussion website. Registered users (commonly referred to as "Redditors") submit content to the site such as links, text posts, imag ...
, the site became an instant hit. Within two weeks, Dogecoin had established a dedicated blog and forum, and its market value has reached US$8 million, once jumping to become the seventh largest electronic currency in the world. Dogecoin is based on
Scrypt In cryptography, scrypt (pronounced "ess crypt") is a password-based key derivation function created by Colin Percival in March 2009, originally for the Tarsnap online backup service. The algorithm was specifically designed to make it costly ...
algorithm, and the transaction process is more convenient than Bitcoin. Dogecoin takes only 1 minute to confirm, while BTC takes 10 minutes.


History

Originally formed as a "joke", Dogecoin was created by IBM software engineer Billy Markus and
Adobe Adobe ( ; ) is a building material made from earth and organic materials. is Spanish for '' mudbrick''. In some English-speaking regions of Spanish heritage, such as the Southwestern United States, the term is used to refer to any kind of ...
software engineer Jackson Palmer. They wanted to create a peer-to-peer digital currency that could reach a broader demographic than
Bitcoin Bitcoin (abbreviation: BTC; sign: ₿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distr ...
. In addition, they wanted to distance it from the controversial history of other coins. Dogecoin was officially launched on December 6, 2013, and within the first 30 days, there were over a million visitors to Dogecoin.com. Palmer is credited with making the idea a reality. At the time, he was a member of the
Adobe Systems Adobe Inc. ( ), originally called Adobe Systems Incorporated, is an American multinational computer software company incorporated in Delaware and headquartered in San Jose, California. It has historically specialized in software for the cre ...
marketing department in
Sydney Sydney ( ) is the capital city of the state of New South Wales, and the most populous city in both Australia and Oceania. Located on Australia's east coast, the metropolis surrounds Sydney Harbour and extends about towards the Blue Mounta ...
. Palmer had purchased the domain Dogecoin.com and added a splash screen, which featured the coin's logo and scattered
Comic Sans Comic Sans MS is a sans-serif typeface designed by Vincent Connare and released in 1994 by Microsoft Corporation. It is a non-connecting script inspired by comic book lettering, intended for use in cartoon speech bubbles, as well as in other cas ...
text. Markus reached out to Palmer after seeing the site, and started efforts to develop the currency. Markus had designed Dogecoin's protocol based on existing cryptocurrencies Luckycoin and
Litecoin Litecoin (Abbreviation: LTC; sign: Ł) is a decentralized peer-to-peer cryptocurrency and open-source software project released under the MIT/X11 license. Inspired by Bitcoin, Litecoin was among the earliest altcoins, starting in October 201 ...
, which use
scrypt In cryptography, scrypt (pronounced "ess crypt") is a password-based key derivation function created by Colin Percival in March 2009, originally for the Tarsnap online backup service. The algorithm was specifically designed to make it costly ...
technology in their
proof-of-work Proof of work (PoW) is a form of cryptographic proof in which one party (the ''prover'') proves to others (the ''verifiers'') that a certain amount of a specific computational effort has been expended. Verifiers can subsequently confirm this expe ...
algorithm. The use of scrypt means that miners cannot use
SHA-256 SHA-2 (Secure Hash Algorithm 2) is a set of cryptographic hash functions designed by the United States National Security Agency (NSA) and first published in 2001. They are built using the Merkle–Damgård construction, from a one-way compressi ...
bitcoin mining equipment, and instead must use dedicated
FPGA A field-programmable gate array (FPGA) is an integrated circuit designed to be configured by a customer or a designer after manufacturinghence the term '' field-programmable''. The FPGA configuration is generally specified using a hardware d ...
and
ASIC An application-specific integrated circuit (ASIC ) is an integrated circuit (IC) chip customized for a particular use, rather than intended for general-purpose use, such as a chip designed to run in a digital voice recorder or a high-efficie ...
devices for mining which are known to be more complex to produce. On December 19, 2013, Dogecoin jumped nearly 300% in value in 72 hours, rising from US$0.00026 to US$0.00095, with a volume of billions of Dogecoins per day. This growth occurred during a time when bitcoin and many other cryptocurrencies were reeling from China's decision to forbid Chinese banks from investing into the bitcoin economy. Three days later, Dogecoin experienced its first major crash by dropping by 80% due to this event and to large mining pools exploiting the small amount of computing power required at the time to mine Dogecoin. On
December December is the twelfth and final month of the year in the Julian and Gregorian calendars and is also the last of seven months to have a length of 31 days. December got its name from the Latin word ''decem'' (meaning ten) because it was ori ...
25, 2013, the first major theft of Dogecoin occurred when millions of coins were stolen during a hack on the online
cryptocurrency wallet A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys for cryptocurrency transactions. In addition to this basic function of storing the keys, a cryptocurrency wallet more often al ...
platform Dogewallet. The hacker gained access to the platform's filesystem and modified its send/receive page to send any and all coins to a static address. This hacking incident spiked tweets about Dogecoin, making it the most mentioned altcoin on Twitter at the time, although it was in reference to a negative event. To help those who lost funds on Dogewallet after its breach, the Dogecoin community started an initiative named "SaveDogemas" to help donate coins to those who had them stolen. Approximately one month later, enough money was donated to cover all of the coins that were stolen. In January 2014, the trading volume of Dogecoin briefly surpassed that of Bitcoin and all other cryptocurrencies combined. However, its market capitalization remained substantially behind that of Bitcoin. Initially, Dogecoin featured a randomized reward that is received for each mining block. However, in March 2014, this behaviour was later updated to a static block reward. Co-founder Jackson Palmer left the cryptocurrency community in 2015 and has no plans to return, having come to the belief that cryptocurrency, originally conceived as a libertarian alternative to money, is fundamentally exploitative and built to enrich its top proponents. His co-founder, Billy Markus, agreed that Palmer's position was generally valid. During 2017 to early 2018
cryptocurrency bubble A cryptocurrency bubble is a phenomenon where the market increasingly considers the going price of cryptocurrency assets to be inflated against their hypothetical value. The history of cryptocurrency has been marked by several speculative bubbl ...
, Dogecoin briefly reached a peak of US$0.017/Ð1 on January 7, 2018, putting its total market capitalization near US$2 billion. In July 2020, the price of Dogecoin spiked following a
TikTok TikTok, known in China as Douyin (), is a short-form video hosting service owned by the Chinese company ByteDance. It hosts user-submitted videos, which can range in duration from 15 seconds to 10 minutes. TikTok is an international version o ...
trend aimed at getting Dogecoin to US$1. On May 9, 2021,
SpaceX Space Exploration Technologies Corp. (SpaceX) is an American spacecraft manufacturer, launcher, and a satellite communications corporation headquartered in Hawthorne, California. It was founded in 2002 by Elon Musk with the stated goal o ...
announced a rideshare mission to the Moon completely funded by Dogecoin, thus becoming the first space mission funded by a cryptocurrency. Elon Musk confirmed this news via Twitter. DOGE-1 was planned to be a minor 40 kg rideshare payload on
Intuitive Machines Intuitive Machines, LLC is a private American company headquartered in Houston, Texas. It was founded in 2013 by Stephen Altemus, Kam Ghaffarian, Tim Crain. Intuitive Machines is completing its lunar program which will provide lunar surface access ...
' IM-1 mission in Q1 2022. On August 14, 2021, the Dogecoin Foundation announced the "re-establishment of the Dogecoin Foundation (est 2014), with a renewed focus on supporting the Dogecoin Ecosystem, Community and promoting the future of the Dogecoin Blockchain." The Foundation was reinvigorated by the addition to its Board of notable advisors such as
Vitalik Buterin Vitaly "Vitalik" Buterin (born 1994) is a Russian-Canadian computer programmer and founder of Ethereum. Buterin became involved with cryptocurrency early in its inception, co-founding ''Bitcoin Magazine'' in 2011. In 2014, Buterin deployed Eth ...
(Ethereum co-founder and inventor) and Jared Birchall (representing Elon Musk).


2021 boom and subsequent fall

In January 2021, Dogecoin went up over 800% in 24 hours, attaining a price of US$0.07, as a result of attention from
Reddit Reddit (; stylized in all lowercase as reddit) is an American social news aggregation, content rating, and discussion website. Registered users (commonly referred to as "Redditors") submit content to the site such as links, text posts, imag ...
users, partially encouraged by
Elon Musk Elon Reeve Musk ( ; born June 28, 1971) is a business magnate and investor. He is the founder, CEO and chief engineer of SpaceX; angel investor, CEO and product architect of Tesla, Inc.; owner and CEO of Twitter, Inc.; founder of The B ...
and the
GameStop short squeeze In January 2021, a short squeeze of the stock of the American video game retailer GameStop () and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. Approximately 140 ...
. In February 2021, Dogecoin hit a new high price of US$0.08 following Twitter encouragement from Musk,
Snoop Dogg Calvin Cordozar Broadus Jr. (born October 20, 1971), known professionally as Snoop Dogg (previously Snoop Doggy Dogg and briefly Snoop Lion), is an American rapper. His fame dates back to 1992 when he featured on Dr. Dre's debut solo single, " ...
and
Gene Simmons Gene Simmons (born Chaim Witz; he, חיים ויץ, ; born August 25, 1949) is an Israeli-American musician. Also known by his stage persona The Demon, he is the bassist and co-lead singer of Kiss, the hard rock band he co-founded with Paul ...
. In March 2021,
Dallas Mavericks The Dallas Mavericks (often referred to as the Mavs) are an American professional basketball team based in Dallas. The Mavericks compete in the National Basketball Association (NBA) as a member of the Western Conference Southwest Division. Th ...
owner
Mark Cuban Mark Cuban (born July 31, 1958) is an American billionaire entrepreneur, television personality, and media proprietor whose net worth is an estimated $4.8 billion, according to ''Forbes'', and ranked No. 177 on the 2020 ''Forbes'' 400 list ...
announced his NBA team would allow purchasing tickets and products with Dogecoin; within two days, Cuban had declared his franchise had become the top Dogecoin merchant, having carried out 20,000 transactions. In April 2021, Dogecoin and other cryptocurrencies surged, stimulated in part by the direct listing for cryptocurrency exchange
Coinbase Coinbase Global, Inc., branded Coinbase, is an American publicly traded company that operates a cryptocurrency exchange platform. Coinbase is a distributed company; all employees operate via remote work and the company lacks a physical headqua ...
on April 14, although that platform did not provide trading of Dogecoin. Its price first reached US$0.10 on April 14, before hitting a new high of US$0.45 on April 16 (up 400% that week), with a volume of nearly US$70 billion traded in the preceding 24 hours. , Dogecoin's market capitalization approached US$50 billion, making it the fifth-highest-valued cryptocurrency; its value had increased more than 7,000% year-to-date. Interest in Dogecoin contributed to an outage in
electronic trading platform In finance, an electronic trading platform also known as an online trading platform, is a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Various financial products ...
Robinhood's cryptocurrency system on April 15, caused by "unprecedented demand", and prompted concerns from experts of a nearing
speculative bubble An economic bubble (also called a speculative bubble or a financial bubble) is a period when current asset prices greatly exceed their intrinsic valuation, being the valuation that the underlying long-term fundamentals justify. Bubbles can be ...
in the cryptocurrency market. On May 4, 2021, the value of Dogecoin first surpassed the symbolic hurdle of US$0.50, a greater than 20,000% increase in one year. On May 8, 2021, despite—or perhaps ''because'' of—expectations of a surge in interest in Dogecoin resulting from Elon Musk's appearance on ''
Saturday Night Live ''Saturday Night Live'' (often abbreviated to ''SNL'') is an American late-night live television sketch comedy and variety show created by Lorne Michaels and developed by Dick Ebersol that airs on NBC and Peacock. Michaels currently serves ...
'', Dogecoin dropped 34% from US$0.711 at the opening of the show to below US$0.470 45 minutes later. By the following morning Dogecoin hit a swing low of US$0.401, a cumulative drop of 43.6% and lost value of US$35 billion. As of July 2022, DOGE has fallen below US$0.07, and its US$8.9 billion market cap makes it the tenth-largest cryptocoin.


Use and exchanges

Dogecoin is an altcoin with a large userbase, and is traded against both fiat currencies and other cryptocurrencies on several reputable
cryptocurrency A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It i ...
exchanges and retail investment platforms. Trading physical, tangible items in exchange for DOGE takes place on online communities such as Reddit and Twitter, where users in such circles frequently share cryptocurrency-related information. Several cases of people using their employers' or universities' computers to mine Dogecoin have been discovered. Dogecoin has also been used in an attempted property sale, it and has been used in the pornography and gambling industries.


Online tipping

One major mainstream commercial application of the cryptocurrency has been Internet-based tipping systems, in which social media users tip other users for providing interesting or noteworthy content.


Dogetipbot

Dogetipbot was a cryptocurrency transaction service used on popular sites like Reddit and
Twitch Twitch may refer to: Biology * Muscle contraction ** Convulsion, rapid and repeated muscle contraction and relaxation ** Fasciculation, a small, local, involuntary muscle contraction ** Myoclonic twitch, a jerk usually caused by sudden muscle co ...
. It allowed users to send Dogecoins to other users through commands via Reddit comments. In May 2017, Dogetipbot was discontinued and taken offline after its creator declared bankruptcy; this left many Dogetipbot users losing their coins stored in the Dogetipbot system.


Technology and DeFi

DeFi (
decentralized finance Decentralized finance (often stylized as DeFi) offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain. DeFi platforms allow people to lend or borrow funds ...
) is a form of finance that does not rely on middlemen such as
brokerage A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be con ...
s, exchanges, or
bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...
s to offer financial instruments.Decentralized Finance (DeFi) Definition
Investopedia.
This is accomplished using "
smart contract A smart contract is a computer program or a transaction protocol that is intended to automatically execute, control or document events and actions according to the terms of a contract or an agreement. The objectives of smart contracts are the r ...
s" which are automated enforceable agreements that do not need intermediaries like a bank or lawyer, but use online
blockchain A blockchain is a type of distributed ledger technology (DLT) that consists of growing lists of records, called ''blocks'', that are securely linked together using cryptography. Each block contains a cryptographic hash of the previous block, ...
technology instead. While Dogecoin cannot interact with smart contracts directly given that it operates on its own chain, the coins can be "wrapped" so that they can be locked into a state that is interoperable with a contract until it is later released. The Ren Project has enabled Dogecoin (renDOGE) to be used on the
Ethereum Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether (Abbreviation: ETH; sign: Ξ) is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capita ...
blockchain and access the DeFi network. Most DeFi coins use the Ethereum blockchain network. DeFi linked coins use decentralized applications ("
dApp A decentralised application (DApp, dApp, Dapp, or dapp) is an application that can operate autonomously, typically through the use of smart contracts, that run on a decentralized computing, blockchain or other distributed ledger system. Like t ...
s") to transact and trade on decentralized exchanges (DExs). An example of a Dexs is Uniswap; these are entirely
peer-to-peer Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the network. They are said to form a peer-to-peer ...
exchanges, without any company or other institution providing the platform.


Currency supply

Dogecoin started with a supply limit of Ð100 
billion Billion is a word for a large number, and it has two distinct definitions: *1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is its only current meaning in English. * 1,000,000,000,000, i. ...
, which would have been far more coins than the top digital currencies were then allowing. By mid-2015, the 100 billionth Dogecoin had been mined, with an additional Ð5 billion put into circulation every year thereafter. Although there is no theoretical supply limit, at this rate, the number of Dogecoins put into circulation will only double in 20 years (the next doubling will occur in the year 2075). There is no implemented hard cap on the total supply of Dogecoins. Nonetheless, in February 2014, Dogecoin founder Jackson Palmer announced that the limit would be removed in an effort to create a consistent reduction of its inflation rate over time. In other words, the inflation rate improves over time starting at 5% in 2015 to less than 4% by 2019, 3% by 2027, and 2% by 2035.


Mining parameters

Dogecoin's implementation differs from its predecessors: It was originally forked from
Litecoin Litecoin (Abbreviation: LTC; sign: Ł) is a decentralized peer-to-peer cryptocurrency and open-source software project released under the MIT/X11 license. Inspired by Bitcoin, Litecoin was among the earliest altcoins, starting in October 201 ...
, then refactored to Bitcoin. Dogecoin's target block time is 1 minute, as opposed to Litecoin's 2.5 minutes and Bitcoin's 10 minutes.


Fundraising


2014 Winter Olympics

The Dogecoin community and foundation have encouraged fundraising for charities and other notable causes. On January 19, 2014, a fundraiser was established by the Dogecoin community to raise US$50,000 for the Jamaican Bobsled Team, which had qualified for, but could not afford to go to, the
Sochi Winter Olympics The 2014 Winter Olympics, officially called the XXII Olympic Winter Games (russian: XXII Олимпийские зимние игры, XXII Olimpiyskiye zimniye igry) and commonly known as Sochi 2014 (russian: Сочи 2014), was an international ...
. By the second day, US$36,000 worth of Dogecoin was donated and the Dogecoin to
bitcoin Bitcoin (abbreviation: BTC; sign: ₿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distr ...
exchange rate rose by 50%. The Dogecoin community also raised funds for a second Sochi athlete,
Shiva Keshavan Shiva Keshavan, (born 25 August 1981) is a six-time Olympian and the first Indian representative to compete in luge at the Winter Olympic Games. He set a new Asian speed record at after beating the previous record of and won a gold medal in ...
.


Doge4Water

Inspired by the Winter Olympics fundraiser and smaller charity fundraising successes, the Dogecoin Foundation, led by Eric Nakagawa, began collecting donations to build a well in the Tana river basin in Kenya in cooperation with Charity: Water. They set out to raise a total of Ð40,000,000 (US$30,000 at the time) Dogecoin before
World Water Day World Water Day is an annual United Nations (UN) observance day held on 22 March that highlights the importance of fresh water. The day is used to advocate for the sustainable management of freshwater resources. The theme of each year focuses o ...
(March 22). The campaign succeeded, collecting donations from more than 4,000 donors, including one anonymous benefactor who donated Ð14,000,000 (approx. US$11,000 at the time, or US$2.8m in 2021).


NASCAR

On March 25, 2014, the Dogecoin community successfully raised Ð67.8 million (around US$55,000 at the time) in an effort to sponsor
NASCAR The National Association for Stock Car Auto Racing, LLC (NASCAR) is an American auto racing sanctioning and operating company that is best known for stock car racing. The privately owned company was founded by Bill France Sr. in 1948, and ...
Sprint Cup Series The NASCAR Cup Series is the top racing series of the NASCAR, National Association for Stock Car Auto Racing (NASCAR). The series began in 1949 as the Strictly Stock Division, and from 1950 to 1970 it was known as the Grand National Division. ...
driver Josh Wise. Nicknamed the "Moonrocket", the No. 98 car featured a Dogecoin/Reddit-sponsored paint scheme and was driven by Wise at the
Aaron's 499 The GEICO 500 is a NASCAR Cup Series stock car race held at the Talladega Superspeedway in Lincoln, Alabama. The race is usually held in April or May. The 1997 event stands as the fastest NASCAR race to date ever run with an average speed of ...
at
Talladega Superspeedway Talladega Superspeedway, nicknamed “'Dega”, and formerly named Alabama International Motor Speedway (AIMS) from 1969 to 1989, is a motorsports complex located north of Talladega, Alabama. It is located on the former Anniston Air Force Base ...
. Wise and the car were featured for nearly a minute, during which the race commentators discussed Dogecoin and the crowdfunding effort, while finishing twentieth and narrowly avoiding multiple wrecks. On May 16, Wise won a spot at the
Sprint All-Star Race The NASCAR All-Star Race, formerly known as The Winston from 1985 to 2003, the Nextel All-Star Challenge from 2004 to 2007, the Sprint All-Star Race from 2008 to 2016, and the Monster Energy NASCAR All-Star Race from 2017 to 2019, is an annual NAS ...
through an online fan vote beating
Danica Patrick Danica Sue Patrick (; born March 25, 1982) is an American former professional racing driver. She is the most successful woman in the history of American open-wheel car racing—her victory in the 2008 Indy Japan 300 is the only win by a woman i ...
, largely due to the efforts of the Dogecoin Reddit community. He finished the race in fifteenth, the last car running. The following race in the
Coca-Cola 600 The Coca-Cola 600, originally the World 600, is an annual NASCAR Cup Series points race held at the Charlotte Motor Speedway in Concord, North Carolina, on a Sunday during Memorial Day weekend. The first race, held in 1960, was also the first on ...
, Wise debuted a Dogecoin/Reddit.com helmet. Wise later announced he would run the car again at the
Toyota/Save Mart 350 The Toyota/Save Mart 350 is a stock car racing event in the NASCAR Cup Series that has been held annually at Sonoma Raceway at Sears Point in Sonoma, California since 1989. The race has been known as the Toyota/Save Mart 350 since 2007. The r ...
and the GEICO 500 as a thank-you gift to the community. He finished twenty-eighth in the race due in part to a refueling issue; he was in twelfth place after a gas-and-go pit stop, but the gas can did not engage long enough, resulting in a second pit stop that took him towards the back of the pack. Eutechnyx, the developer of the '' NASCAR '14'' video game, added the Dogecoin car as a drivable car in a DLC pack. On March 2, 2021,
NASCAR Xfinity Series The NASCAR Xfinity Series (NXS) is a stock car racing series organized by NASCAR. It is promoted as NASCAR's second-tier circuit to the organization's top level Cup Series. NXS events are frequently held as a support race on the day prior to a ...
team B. J. McLeod Motorsports announced that Dogecoin would be sponsoring the № 99 car in the Alsco Uniforms 300 at
Las Vegas Las Vegas (; Spanish for "The Meadows"), often known simply as Vegas, is the 25th-most populous city in the United States, the most populous city in the state of Nevada, and the county seat of Clark County. The city anchors the Las Veg ...
alongside Springrates;
Stefan Parsons Stefan Charles Parsons (born June 15, 1998) is an American professional stock car racing driver. He competes part-time in the NASCAR Xfinity Series, driving the Nos. 43 and 45 Chevrolet Camaros for Alpha Prime Racing. He has also raced in the NAS ...
drove the car to a 36th-place finish as fuel line issues prevented him from completing the race. Coincidentally, his father
Phil Phil may refer to: * Phil (given name), a shortened version of masculine and feminine names * Phill, a given name also spelled "Phil" * Phil, Kentucky, United States * ''Phil'' (film), a 2019 film * -phil-, a lexical fragment, used as a root ter ...
was the owner of the team that fielded the original Dogecoin-sponsored car in 2014.


Criticism

Dogecoin's origin as a "joke", which makes it the first meme coin, has made it difficult to be taken seriously by mainstream media and financial experts. The cryptocurrency has had a long and problematic history of scams. Similar to many other cryptocurrencies, Dogecoin has been described by some commentators as a form of
Ponzi Charles Ponzi (, ; born Carlo Pietro Giovanni Guglielmo Tebaldo Ponzi; March 3, 1882 – January 15, 1949) was an Italian swindler and con artist who operated in the U.S. and Canada. His aliases included ''Charles Ponci'', ''Carlo'', and ''Cha ...
scheme. Critics allege that Dogecoin investors who purchased Dogecoins early on, have a large financial incentive to draw others into purchasing more Dogecoins in order to drive the price up, therefore benefitting the early investors financially at the direct expense of later purchasers. This is primarily because Dogecoin does not have a supply cap like other cryptocurrencies such as Bitcoin, which has a capped supply of 21 million coins. Dogecoin has instead a deliberately stable, "deterministic inflation" rate of Ð10,000 per block, with a block time of one minute.. Exactly Ð5 billion in new Dogecoins will be created and enter circulation every year.


Positives

While the price of Dogecoin is volatile, this volatility has its benefits. It allows investors to use strategies such as cryptocurrency
day trading Day trading is a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day, so that all positions are closed before the market closes for the trading day to avoid unmanageable risks ...
or
scalping Scalping is the act of cutting or tearing a part of the human scalp, with hair attached, from the head, and generally occurred in warfare with the scalp being a trophy. Scalp-taking is considered part of the broader cultural practice of the taki ...
to profit from fast, short-lived price swings. Additionally, while the cryptocurrency may have begun as a "joke", it was the 10th-largest cryptocurrency in the world in September 2021, with a market capitalisation of US$26 billion. Larger coins included
Bitcoin Bitcoin (abbreviation: BTC; sign: ₿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distr ...
,
Ethereum Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether (Abbreviation: ETH; sign: Ξ) is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capita ...
, Cardano, Binance Coin,
Tether A tether is a cord, fixture, or flexible attachment that characteristically anchors something movable to something fixed; it also maybe used to connect two movable objects, such as an item being towed by its tow. Applications for tethers includ ...
, and
XRP Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open source protocol, and supports tokens ...
.
Mark Cuban Mark Cuban (born July 31, 1958) is an American billionaire entrepreneur, television personality, and media proprietor whose net worth is an estimated $4.8 billion, according to ''Forbes'', and ranked No. 177 on the 2020 ''Forbes'' 400 list ...
has stated of Dogecoin that, "Doge has 'deterministic inflation' meaning the amount of inflation is defined. There is no uncertainty as to the amount of created and it's inflation percentage. Which could allow it to grow as a valid payment mechanism. The unknown is whether enough people will use it this way."


Elon Musk and Dogecoin

Elon Musk Elon Reeve Musk ( ; born June 28, 1971) is a business magnate and investor. He is the founder, CEO and chief engineer of SpaceX; angel investor, CEO and product architect of Tesla, Inc.; owner and CEO of Twitter, Inc.; founder of The B ...
frequently uses his Twitter platform to express his views on Dogecoin, which has led some to claim that his actions amount to market manipulation because the price of Dogecoin frequently experiences price movements shortly after Dogecoin-related tweets released by Elon Musk. Nevertheless, because cryptocurrencies are not regulated like stocks, these actions are not illegal. Musk and his promotion of Dogecoin have been criticized by Dogecoin co-founder Jackson Palmer, who called Musk a "self-absorbed grifter". Musk's first Dogecoin-related tweet occurred on December 20, 2020. Musk tweeted "One Word: Doge". Shortly after, the value of Dogecoin rose by 20%. This was followed by a series of Dogecoin-related tweets by Musk in early February 2021 captioned "Dogecoin is the people's crypto" and "no highs, no lows, only Doge". Following these tweets, the value of Dogecoin rose by roughly 40%. On April 15, 2021, the price of Dogecoin rose by more than 100% after Musk tweeted an image of Joan Miró's ''Dog Barking at the Moon'' painting captioned "Doge Barking at the Moon". On May 8, 2021, Dogecoin fell as much as 29.5%, dropping to US$0.49 during Elon Musk’s ''Saturday Night Live'' appearance. The price of Dogecoin rose by 11% on May 20, 2021, shortly after Musk tweeted a Doge-related
meme A meme ( ) is an idea, behavior, or style that spreads by means of imitation from person to person within a culture and often carries symbolic meaning representing a particular phenomenon or theme. A meme acts as a unit for carrying cultural ...
. In May 2021, the price of Dogecoin was up 10% in the hours after Musk tweeted a Reddit link for users to submit proposals to improve the cryptocurrency. On December 14, 2021, Dogecoin spiked more than 20% after Elon Musk said that Tesla will accept the currency as a means of payment for Tesla merchandise. On June 16, 2022, Elon Musk was named in a complaint seeking damages of $258 billion. The complaint was filed in federal court in Manhattan by plaintiff Keith Johnson. Johnson cited Musk's repeated use of his massive social influence to promote the
altcoin A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It is ...
, which he claims artificially inflated the price. On October 27, 2022, Elon Musk completed a deal to take Twitter private for $44 billion. This led to a sustained rise in Dogecoin from the 25th to the 29th, with the highest increase of 45.51%. It was reported back in 2013 that Musk thinks dogecoin can be used for Twitter transactions.


See also

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Shiba Inu (cryptocurrency) Shiba Inu token (ticker: SHIB) is a Decentralized exchange, decentralized cryptocurrency created in August 2020 by an anonymous person or group known as "Ryoshi". It is named after the Shiba Inu (柴犬), a Japanese breed of dog originating in ...


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* {{Authority control Currencies introduced in 2013 Cryptocurrency projects Computer-related introductions in 2013 Satire Internet memes