On February 4,2021, Musk released a Twitter about DogeCoin with lion King P graphics and updated the follow-up on February 7.Footprint Analytics Data show that the price of DogeCoin rose rapidly by 21. [] 43%. On February 19,2022, food and beverage at Tesla's Hollywood Supercharger station received DogeCoin payment.
With the blessing of the "DogeCoin CEO" promotion, DogeCoin was successful. It can now be traded as a cryptocurrency with circulating value. According to the data included in Cryptwerk, as of February 25,2022,1,069 merchants and organizations have accepted DogeCoin as a payment method.DogeCoin How did it succeed? This article will remove the reasons behind it one by one.
DogeCoin, Which appeared in 2013 as a tool to mock BTC, and became a popular token in 2021. There are three main reasons for the success:
1. Celebrity effect
There is no doubt that the celebrity effect is a very important factor in the DogeCoin's success. Musk's passion for DogeCoin changes DogeCoin prices with every tweet. Or skyrocketing, or exploding down.
In February 2021, Musk tweeted about Dogecoin is the people's crypto. DogeCoin Intraday increase of more than 80%.
In May 2021, Musk acknowledged DogeCoin as a scam in an interview with the US variety show "Saturday Night Show".DogeCoin Down 34%.
In January 2022, Musk tweeted that Tesla products could be purchased using DogeCoin.DogeCoin Short-term rise up by more than 20%.
Footprint Analytics - Price of Dogecoin
On August 18,2021, the DogeCoin Foundation was rebuilt to listing Musk as advisers to the board with Vitalik Buterin. Musk's celebrity effect is recognized for his contributions to the DogeCoin community.
2、Consensus value
The classification of the value of cryptocurrencies can be simply divided into consensus-based value and technology-based user recognition. Consensus-based cryptocurrencies are typically BTC. Recognized can be used as an investment benefit or currency preservation choice, and is pursued by users. It is now recognized by countries such as El Salvador as a legal currency. DogeCoin The circulation value has also been realized in a small area.
3、Meme addition reaction
DogeCoin Is the Meme token. It copies the code of Litecoin (BTC) and has no high technical value. This is different from the value and high price generated by ETH based on the powerful technology of Ethereum. On the contrary, DogeCoin's price (entry threshold) is very low, which is the commonness of Meme token. To understand the characteristics and values of the Meme token, you need to understand the Meme first.
Meme concept
Meme (meme), from the book The Selfish Gene. It originally refers to a substance that can stay in a single subject (usually the human brain) for a long time and retain its own core characteristics to spread between different subjects. Now it is more often used to study and describe the spread of a cultural phenomenon. From the conceptual point of view, it is not difficult to see that token classified by Meme has a strong ability to aggregate and attract attention.
MemeToken feature
Meme Token Based on Meme culture is bound to be severely driven by the community. Mood changes in media, names and communities can cause price fluctuations.Meme toke There are mainly DogeCoin, SHIB, ELON, SOS, etc. There are three main features:
Token There is no upper limit to the circulation.
The price is very low, usually less than $1, and most people can be bought for a few cents.
Cultural symbols, usually have specific cultural connotations such as ridicule.
Footprint Analytics - Meme Token‘s Ranking
Meme token Because of its specific cultural connotation, it has a certain ability to attract attention, but the requirements to attract players to retain is relatively high. There are mainly four cases as follows.
The story nature of the cultural connotation. A Meme token needs to have a more interesting story, to have a greater possibility to attract players into holders.
A benign community atmosphere.Meme token The price is usually extremely low, and whenever the price increases by 10 times, 100 times, it is important that the community has some celebrations to motivate holders to continue to zero.Joking, banter level. Enough teasing and banter to resonate with the player to support the token.
Celebrity recognition. Blockchain pours out a lot of token every day, and celebrity recognition can help token stand out to a great extent. Of course, this celebrity is usually a celebrity recognized by the public.
Meme Token Successful cases
Now the more successful Meme token, in other words, Market Cap is relatively large, relatively high visibility is DogeCoin and SHIB. As of February 18, DogeCoin and SHIB were ranked 10th and 11th among all cryptocurrencies (excluding Stablecoins). To some extent, it can be said that the success of DogeCoin and SHIB is the realization of Meme culture.
DogeCoin As a typical example of Meme token, the mockery of BTC has been recognized by many people and received the support of celebrity Musk (CEO of Tesla and SpaceX). While one of the founders of DogeCoin has long abandoned DogeCoin, that doesn't stop DogeCoin from becoming the top cryptocurrency by market capitalization.
DogeCoin It was a great success because of the celebrity effect, consensus value and Meme culture bonus. No longer stay in the single connotation level of ridicule.
As a payment method into the circulation, become the top token to achieve the value.
The DogeCoin community raised DogeCoin to sponsor the Jamaican sleled team for the Sochi Winter Olympics.
Raise funds to help the MSF (Doctors Without Borders) treat Ebola victims.
A series of DogeCoin applications are no longer limited to the world of Web3, but bring more consensus ideas of community autonomy, freedom and decentralization to the real world and have an impact.
Thinking about the Meme Token
DogeCoin Successful, but the great volatility influenced by celebrities still means high risk. Of course, the release of Meme token is very simple, with low maintenance costs, and a great degree of community autonomy. But this is not equal to Meme token, you can indulge in all in.
On the contrary, it is not easy for Meme token to get celebrity recognition and support and resonate. And there are few use cases of Meme token, different from the token of technically supported chains or the token of the DeFi protocol. In addition, Meme token does not support smart contracts, and pure Meme token has no ecological application.
Yes, the DogeCoin's success is just an exception. As an interest can try Meme token, but as an investment is not a good choice. At least not an all in top option.