When Jackson Palmer created Dogecoin he was having fun. It was a parody currency based on an internet meme featuring a Japanese Shiba Inu dog called Kabosu. He didn’t expect that it would one day be worth $1 billion.
At time of writing Dogecoin’s market cap is over $1.2 billion, according to CoinMarketCap, and it is trading at a record high of 0.010. In the last month alone the altcoin has gone up by 400%.
The Shiba Inus’s Favourite
Dogecoin’s purpose is the global transfer of funds, and as its website says, it is “favored by Shiba Inus worldwide”. Dogecoin is available at crypto-exchanges or by mining.
As with many of the surging altcoins, there seems to be no obvious trigger to the rising price other than investor psychology. Rather than own a fraction of Bitcoin or Ether, investors prefer to have multiples of something cheaper as if feels like a better deal. Also that for an equal investment the cheaper coins appear to have a lower downside risk and more upside potential. Spending $1,000 to buy 100,000 coins at $0.01 seems less risky than $1,000 spent on 0.1 of a $10,000 coin.
Prices a Distraction From Technology
Founder Jackson Palmer left the project in 2015 but in an interview with Coindesk he outlined his concerns over the current value of his creation. Chief among these was a discomfort with the current focus on cryptocurrency prices and investment opportunities, as they are distracting people from the transformative potential of the technology.
He also pointed out what many were thinking, that 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.”
Unlike many other cryptocurrencies Dogecoin is not supported by a well-funded team of full-timers, instead being completely supported by volunteer developers working on it when they can.