Amid the so-called meme stock frenzy, it may be appropriate that a meme-based cryptocurrency has been swept away by the craze.
Dogecoin, a digital currency created as a joke, is now the tenth largest cryptocurrency in the world, according to CoinMarketCap. Its price has risen more than 1,600 percent so far this year, driven in recent days by celebrities like cheerleaders like Tesla’s Elon Muskthe rapper Snoop Dogg and the rocker Gene Simmons from Kiss, who promoted Dogecoin on social media.
Dogecoin is called the “fun and friendly Internet currency” by its creators. The token was created in 2013 as a meme-based satire about the proliferation of dubious cryptocurrencies at the time. The Internet meme “Doge”, featuring a perpetually surprised Shiba Inu dog, was gaining viral fame at the time.
Dogecoin holders often use tokens to give little tips to each other on online forums or come together to tackle unlikely causes, such as sponsoring Jamaica’s two-man bobsled team at the 2014 Winter Olympics.
Speaking on the Clubhouse audio-sharing app last week, Musk said his enthusiastic support for Dogecoin – he came out of a self-imposed Twitter hiatus to tweet about it – was itself a multi-layered joke. “Dogecoin was made as a joke to make fun of cryptocurrencies, but fate loves irony,” he said. “The most ironic result would be for Dogecoin to become Earth’s currency in the future.”
Whatever he thinks about Dogecoin, there is no doubt that Mr. Musk takes Bitcoin seriously. Tesla announced on Monday that it had purchased $ 1.5 billion in Bitcoin and would explore the possibility of accepting it as payment for its vehicles.
By mid-morning on Monday, Dogecoin rose 30%, double the Bitcoin gain.