"I pour dogs in the metaverse, I am DogeKing."
On January 31, Shen Teng's Spring Festival Gala skit was a satire on the meta-universe and dogcoin, but the reality was even more magical, as coin speculators flocked to the exchange and DogeKing, a virtual token with the same name as "DogeKing", surged 542 times in the short term. The cryptic wealth cryptocurrency of the Spring Festival Gala, Shen Teng has become the "spokesman" of doge coin.
According to Caixin, Avedex exchange data shows that DogeKing coin price pulled up briefly from $0.000000000007 to $0.00000000372, with a 24-hour trading volume of $460,000.
Public information shows that the coin is a token on the Coin Smart Chain (BSC), a derivative of Dogcoin, launched in November 2021. The coin's liquidity is locked for one year, and the project is completely decentralized and community-driven. The official website does not give the name and information of the team behind the project, nor does it provide a white paper.
With no expertise and no team endorsement, Shen Teng sent the eponymous DogeKing to the altar with just one sentence, ridiculous as a joke. The company has been in the business of coin-operating for a long time, and for people in the circle, this is not coin speculation, but faith.
Musk's cryptocurrency myth
The last one to easily pry up the price of dog coins is still Musk.
The godfather of cryptocurrency attracted a large wave of congregants in February last year when he sent three consecutive tweets in full support of dogcoin, saying that dogcoin was the digital currency of the future. After Musk posted a cartoon image of himself lifting Dogcoin to the sky, the price of Dogcoin instantly rose from $0.0359 to $0.0530. Dogcoin rose 10.4% in a day to $0.47 after Musk announced he was about to work with Dogcoin's developers to improve the system's transaction efficiency.
Until January this year, Musk was still supporting dogcoin. on January 14, Tesla's US online store accepted dogcoin as a payment option for some items. This just confirms Musk's previous promise that "you can use dogcoin to buy some Tesla peripheral products in the future". Dogcoin is on a short term upswing, extending its intra-day gain to 20%.
In addition to accepting dogecoin payments for his own products, Musk wants to push more merchants to support dogecoin. on January 25, Musk tweeted again that he wants McDonald's to accept dogecoin as a payment method, and according to CoinMarketCap, dogecoin rose 8% that day.
Under the influence of Musk's celebrity effect, dogcoin's growth has been considered smooth and its value has soared. According to Coindesk data, it has risen over 91188% since its first birth to May 2021, far outpacing cryptocurrency boss Bitcoin. Its market capitalization has also hit a record breaking $90 billion, and is now above new and old giants like Twitter and Ford Motor.
However, Musk is the self-proclaimed godfather of dogcoin, and one word from him can either propel it to the altar or make it worthless.
On May 8, 2021, Musk admitted that Dogcoin was a "scam" during a joking questioning by the host on the famous American comedy show "Saturday Night Live". The day after the show aired, Dogcoin plunged 39% to $0.4347.
Dogcoin itself has little value, and most of its $90 billion market cap is based on Musk's fans. Once Musk announces his denial of dogcoin, then dogcoin will die a swift death and countless people will face a blowout.
The Birth of Dog Coin
In 2013, they spent only three hours copying the code of Bitcoin. In 2013, they spent just three hours copying the code of Bitcoin and used the popular Shiba Inu emoji as their logo to create a cottage version of Bitcoin, which is also called a cottage coin.
They named the new cryptocurrency Dogecoin as a way to mock the incomprehensible insanity of Bitcoin at the time. It's safe to say that Dogecoin was a joke at its inception.
Dogcoin has an initial mintage of 100 billion coins, with an annual increase of 5%, which is almost unlimited compared to Bitcoin. At the same time, the dogcoin "mining" process is also much simpler, requiring little equipment, just a graphics card; it takes little time, and can be completed in 60 seconds. The so-called "mining" means that people use computers to solve complex mathematical puzzles to unlock new coins.
Because there is almost no cost, the price of dogcoin is very low, with an offer price of only $0.0006, during which the price dropped to $0.0001 at one point. Tens of thousands of dogcoins can be purchased with $100 USD. If these dogcoins were held from the offering until now, as of February 3 at 15:00, dogcoins were quoted at $0.14 per coin, then one would get 233 times the return, or $23,333.
Despite the outrageous rise in dogcoin, the founders have not profited from it.
Palmer officially removed himself from the cryptocurrency scene in 2015 and emptied his social accounts, having explained that he wanted to focus on the technical development of cryptocurrencies, and that in his opinion dogcoin was transforming into a speculative tool. That same year, Marcus was laid off from his company and sold all the dogcoins he had on hand at the time, yielding just enough money to buy a used Honda Civic.
Last July, Palmer returned to social media and sounded the alarm on the cryptocurrency world. Not only did he criticize those in power in the cryptocurrency space for engaging in a form of "financial exploitation," commonly referred to as "leek cutting," but he also pointed out the problematic way cryptocurrencies are shared and marketed, "buying influencers and paid broadcast media channels, perpetuating a cult-like 'get rich quick' channel designed to extract new money from the financially desperate and naive."
Marcus, while returning to the cryptocurrency bandwagon, also said that Palmer's point was "basically correct".
The "scam" that Palmer has repeatedly attacked is in fact almost universally known in the cryptocurrency world.
On May 9, 2021, the well-known institution Grayscale Trust was already publicly shorting Dogcoin. Its founder Barry Silbert tweeted publicly, "Now is the time to swap dogcoin for bitcoin. We've shorted dogcoin via the FTX exchange tool." As a result of this news, dogcoin, which had risen above $0.7 and had the third largest digital currency BNB in terms of market cap, instantly plummeted to near $0.4.
The "scam" that Musk admitted on the show also brought this fact to the public once again. However, for the cryptocurrency community, dogcoin is not just a currency, but a means for retail investors to fight against capital.
In January last year, the GME short-selling drama played out in the U.S. capital markets. the restriction of trading in GME stock sparked discontent among retail investors, who saw it as an injustice to them by helping institutional short-sellers. Driven by public opinion, GME stock soared 10 times in just two weeks. U.S. retail investors, by fighting as a group, pulled GEM, which was about to be taken off the market, from $3 all the way to more than $400. It was a typical case of retail investors against institutions.
The "useless and ridiculous" nature of dogcoin is exactly in line with the sentiment of retail investors against institutional capital. When this sentiment continues to dogcoin, even if dogcoin itself has no value and is a blatant scam, retail investors will rush in to raise the price of dogcoin and prove to the institutions that it is a victory for retail investors.
The financial game of dogcoin has changed from a scam to a belief. Countless people are here, dreaming of overnight riches.
It is worth mentioning that about 28% of all the dogcoins in circulation are in the hands of one person (or entity); at the current price, this portion of dogcoins is worth about $2.1 billion. Once this person (or entity) sells off all of the dogcoins, then dogcoins may be completely crippled.
Speculating on coins is like speculating on shoes, the item itself is not of high value, or even without the backing of a professional team, but as long as there is still the next person to take over, then the top will never lose. It's like beating a drum, as long as the drum doesn't stop, you can still make a profit.
The "old leeks" of the cryptocurrency circle will also sincerely tell the newcomers, please make sure to enter the game lightly, greed will be bloodless.