Just how did Dogecoin become so popular? I mean, this coin was created as a joke, but today it has a
market capitalization of seven billion dollars. How did that happen? Well, if you stick around until the
end of this video, you'll find out just how. Welcome back to Crypto Fox. If you're new here, don't forget to hit that subscribe
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First off, when I said that Dogecoin was meant to be a
joke, I wasn't kidding at all. The Doge meme went viral in 2010. The meme was all about jokes and fun and bad English. So we're left to wonder how on earth did the creators of
Dogecoin think of fashioning a coin based on a meme? And how did that joke ever become so serious in the end? Dogecoin was created in 2013, not too long after the Doge
meme became popular by Billy Marcus and Adobe product marketing manager and Jackson Palmer, a software engineer. The goal was to make the coins seem as ridiculous as
possible. And that was probably the source of this theme.
The coin was created to be a mockery of the new alternative
coins that were flooding the space of the time. It was a fun and funny way of interacting with funds and
not having to pay fees for Internet transactions and online services. So let's go over just how outrageous this coin
was, the dogecoin could be mined very easily and it cost just fractions of a cent, hence it was obtainable by
virtually anyone who wanted to hand in at the time. It was created as a form of lucky coin, which was forked
from Bitcoin, which itself was forked from Bitcoin. The lucky coin operated with a random block reward where
miners could receive absolutely nothing, or coins that were worth thousands as a reward for creating new blocks.
After so much work, the likelihood of getting absolutely
nothing for your hard work was expected to irritate miners and discourage them from using the coin for a long term
payment options. Surprisingly, more attention was drawn to the coin. On creation, the total supply cap of the coin was set at
one hundred billion coins, another poor decision made by the creators by mid 2015, all the coins have been mined with an
additional five billion coins put into circulation every year after that. Eventually, the supply cap was removed and
there's no limit to the number of doge coins that can exist as of now. This decision was made to consistently reduce
the inflation rate of the coin over time. The random reward system was also changed to a more
reasonable fixed reward that's seen in Bitcoin mining. The first major hack to the coincide happened,
unfortunately, just a month after its creation went over 11 million dollars worth of Dogecoin was stolen from the site. This brought a lot of negative Internet attention to the
coin, especially on Twitter. However, the community values seem to hold as the coin
brought forward a front of unity and support from its users.
There were a lot of donations on the coin that went into
sports and charities. The aim was to prove that though Dogecoin was a meme based
cryptocurrency, it did have a real world utility. The first donation was made in January 2014, when thirty
thousand dollars were raised in a matter of hours to send the Jamaican bobsled team to Russia for the 2014 Olympics. The news of the donation was picked up by several
mainstream news outlets, mainly The Washington Post and The Guardian, who spread the news of the coin to the world.
By mid-January, the coin had gained some fame and the
number of transactions with the coin had increased significantly. So much that the number of transactions made
with Dogecoin surpassed those that were made with Bitcoin briefly. The Doge for Kids initiative was set up not too
long after another brilliant trigger for the spread of this coin. By February, this charity had raised another thirty
thousand dollars to provide service dogs to children with special needs.
There was also a story that was posted on
Reddit describing how an Indian luger Shiva Keshavan, needed some money to make it to the Olympics that year after his
home country was suspended for a high rate of corruption. And under a day, over seven thousand five hundred dollars
worth of Dogecoin were raised for him. By March, twenty fourteen fifty thousand dollars was
contributed for a project to support building clean water facilities in Kenya, allowing water wells to be constructed
in the Tunnel River Basin in cooperation with charity.
This project was named the Doege for Water Project, which
was directed towards the world's water day celebration. Josh Wise, a NASCAR driver, was struggling to enter the
Talladega Superspeedway race as he didn't get the sponsorship to help him into the competition. This was also posted on the Dogecoin Weather Channel, the
story attracted one of the most massive fundraising projects from the Dogecoin community. The 98 moon rocket, a car with the Shiba Inamine, was given
to him with over fifty five thousand dollars worth of doge. This was the first time the project was advertised
physically at a major sporting event. It's also happened in March 2014. And as you would expect, it brought a lot of attention to
the community. Other initiatives came up that year, including the Dogecoin
tip bot, which allowed Dogecoin to be used widely as a real world utility coin, the tip bot was a third party service
that was interfaced with Reddit and structured in a way that allowed users of Reddit to send Dogecoin to one another as
a reward for posting favorable content.
This also played a major role in introducing Dogecoin to
Reddit users that normally don't trade with cryptocurrency. The service was so favorable to the Dogecoin community that
it became the world's top crypto tipping service with over seventy thousand sign ups. The service, however, crumbled in twenty seventeen after
the creator, Josh Moland, said he had gone bankrupt and had squandered all the dough is going to pay up for his debts. But since then, other services have taken its place. In recent years, the popularity of dogecoin keeps rising
due to increasing celebrity endorsements when influential celebrities voice their love and support for Dogecoin not
only sensitises people about the coin, but leads to more endorsements from further celebrities and even more love
from their fans.
Some important celebrities that have contributed to the
popularity of Dogecoin include Netflix's Tiger King, Carol Baskin, Gene Simmons of Kiss Green, a former professional
bodybuilder, Snoop Dogg and Little Yadi, American rappers and many more. More recently, and most importantly, Elon
Musk, the richest man in the world and Tesla CEO, made several tweets about Dogecoin, which sent the coins charts
Elon Musk's initial contact with the coin, according to
Coin Desk, was in 2008 when he met up with the CEO of Dogecoin with a bit to help him combat some issues he was
facing on Twitter. The number of people who had started scamming people under
the false of his name was on the high side. A few months after that, Elon Musk tweeted, Dogecoin might
be my favorite cryptocurrency. The tweets continued, especially towards the end of twenty
twenty after Elon Musk had gained a multitude of followers on Twitter and December twenty twenty, Elon Musk did a one
word tweet Doch, which sent the coin up by twenty five percent. The biggest contribution made to this community,
however, has been from a tweet early in twenty twenty one during the Wall Street BET stock market frenzy that gripped
the traditional financial markets. The tweet was of the image of a dog on the cover of Vogue
magazine. That singular tweet caused the price of Doge to increase by
over eight hundred percent. The coin approached a new all time high at eight cents.
He even jokingly commented that the Dogecoin could one day
become the official currency of Mars. Who knows if he was serious or not? For the Dogecoin, possibly Weimar's is major currency. One day I guess we'll have to wait and see. The coin holds a dear place in the community's hearts, and
rightfully so, it would forever represent a strong Internet meme culture, which is fueled by online communities like
Reddit and supported by strong Internet personalities like Elon Musk. It has stood the test of time and it has
definitely passed its very worst times. The early real world utility of the coin contributed
immensely to the early popularity of the coin. In truth, there are numerous reasons why Dogecoin was meant
to be just like a story out of a comic book or better still, a video game.
Yet here we are with a coin that jumped by
over 300 percent of its value in only a month of its creation and has gained a lot of popularity since then. I guess we could boldly say that Dogecoin brought that
breath of fresh air that was needed by people in the cryptocurrency world. We hope you enjoyed this video. And if you did, please give it a thumbs up. Subscribe and click on that notification bell so you can
get updates whenever we post a new video. Dogecoin has proven to be one of the best cryptocurrency
communities in the world. It is a favorite cryptocurrency to many, despite its
creation being intended to be a joke. What do you think was the reason for this? Let us know in the comments below. And while you're here, check out one of our other videos. See you in the next video.