Dogecoin, named after a famous internet meme of a Japanese dog and created as a parody on Bitcoin back in 2014, has come under the focus of investors (who probably weren’t realizing that it was a parody after all). In what its creators are now admitting is a scary scenario and reeks of market excess.
The Dogecoin, which hadn’t had a software update since its creation, has risen to a market cap of $1bn as investors believe that its price point of 0.01$ is simply cheap. Over the past week, it has gone up 400%.
Mr. Jackson Palmer, the coin’s creator who has by now left the company stated that: "The fact that most conversations happening in the media and between peers focus on the investment potential is worrying, as it draws attention away from the underlying technology and goals this movement was based on.”
"I have a lot of faith in the Dogecoin Core development team to keep the software stable and secure, but I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn't released a software update in over 2 years has a $1B+ market cap.
Just to give you an idea of what people are investing a billion dollars into, the Dogecoin is based on the internet meme about the Japanese slang term for ‘dog’ which is mispronounced as ‘doge’.
Its origin goes back to the Homestar Runner’s puppet show from 2005 where one character misspells DOG as DOGE.
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Max Keller, a dogecoin developer, can only be enthusiastic by the coin’s apparent popularity of this year. He said: "It's a little scary when you work on software that powers a billion dollar network. This is quite the responsibility. And also one of the main reasons why we are so reluctant to just slap any 'innovative' tech into the reference client. Still, I am proud of what we achieved and thankful to be part of such a great community."