What is Dogecoin?

Dogecoin is a cryptocurrency that was launched in 2013 by Australian entrepreneur Jackson Palmer and software programmer Billy Markus. Palmer explained in an interview that the inspiration for the project originated from two online tabs he had open on his computer at the time: one with a viral internet meme of a Japanese Shiba Inu “doge,” and the other with a list of recently introduced crypto ventures to the market.

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Palmer playfully invented the term “Dogecoin” for himself and posted the now-famous statement, “Investing in Dogecoin, pretty sure it’s the next big thing,” on his Twitter account. It piqued the eye of the meme-fueled crypto community right away. Dogecoin was initially intended to be “as ridiculous as possible,” in line with its parody concept, and to discourage people from using it in the long run.

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On 22nd January users of the “wallstreetbets” Reddit channel coordinated an attack on Wall Street hedge funds by pumping heavily shorted business stocks. Naturally, this social media-fueled action drew worldwide attention and a growing number of new supporters to the cause. The Reddit channel allegedly increased by 1.5 million members overnight and became so crowded that it had to go offline for a short period of time.

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It didn’t take long for the rebellious swarm of stock pumpers to start seeking the next “cool thing” to pump, and dogecoin, a decentralized cryptocurrency with a strong presence in internet pop culture, was an easy option. Within 24 hours, doge prices increased by 142%, and then by 200% after Tesla CEO Elon Musk joined the fray by tweeting a parody image of “Dogue” magazine to his millions of Twitter followers.

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Since then, Elon Musk – now the self-proclaimed “Dogefather” – has been responsible for driving up doge prices many times by publishing doge-related allusions and memes on his social media feed. Unlike Bitcoin, which is intended to be limited, Dogecoin is supposed to be abundant – 10,000 new coins are mined every minute, and there is no limit to the total supply.