When the vigorous bull market in the crypto market gradually deepens, the direction of capital betting in the market and the investment preferences of retail investors have a clear tendency to involute (Note: Involvement is generally used to describe excessive competition in a certain field, causing people to enter The state of mutual influx and internal friction.) When BTC stopped moving, mainstream coins and altcoins showed a very dazzling performance compared to BTC, new highs and new highs, with a daily increase of 20% or more.
In this scenario, there is a currency that has no technical content and no grand vision. The economic model is continuously issued. Under Musk’s strong Amway, the increase has reached 3412% in the past three months and 441% in the past 30 days.
Then, perhaps inspired by Dogecoin, the Shiba Inu coin SHIB was created in the past two days and spread in the cryptocurrency community, with an increase of 1278.72% in the past 7 days.
As a result, the scrolling between animal coins has become more and more obvious. AKITA INU has increased by 1278.72% in the past 7 days; Aragon-ANT has increased by 96% in the past three months; BSC has increased by 105.47% in the past 30 days; PIG has increased in the past 30 days 310.00%; SDOG went online and rose 100% within one hour.
Why does the market choose Dogecoin?
1. The increase
In any financial market, investors will vote with their feet: because of the skyrocketing, with the help of contract leverage, many people have achieved financial freedom by this, and stimulated by the existing facts, the market’s FOMO sentiment has expanded to the point of a dog. The currency went out of the diametrically opposite trend of BTC, BTC fell and Dogecoin rose.
On April 15th, Dogecoin soared by 50%; on April 16th, it skyrocketed again, with an increase of 250% within 24 hours. Dogecoin has been difficult to cover in small currencies. In fact, the market value of Dogecoin is already Ranked among the top 10 projects in the overall crypto market by market value.
2. There are scenes
Dogecoin was previously able to reward each other on Reddit, which is still very high-frequency. Because it is so cheap that it is almost worthless, everyone is tens of thousands, millions of dollars to reward each other…
3. Security
Although Dogecoin has no technical content, just two engineers changed the code of Bitcoin, but this does not mean that it can launch a double-spend attack on Dogecoin: Dogecoin is realizing that its POW is too fragile After that, I chose to hug my thighs and change it to the same algorithm as Litecoin, so the Litecoin miners are dual mining, with Litecoin on one side and DOGE on the other.
Why did Dogecoin begin to explode at this time?
Perhaps we can start with the “War of Liwei” at the beginning of this year for US stocks retail investors. The outline of this story is: the US stock market’s big short Citron loses GameStop, and retail investors hold a group to boost the stock price:
On Tuesday, January 19 this year, Citron stated in a post on his social account that the buyer of GameStop stock was “the loser in this poker game” and the stock price of this stock would soon return to the $20 level.
However, this statement “stoke the hornet’s nest”, Reddit users rallied against Citron’s comments, and even attacked Andrew Left’s family. At the same time, these retail investors collectively pushed up GameStop’s stock price in order to squeeze out short positions in institutions such as Citron.
With the continuous participation of retail investors, GameStop’s share price soared by nearly 80% in a single day, less than 30 times in a year. Short-selling institutions continued to blow up their positions to raise the stock price, and finally had to seek off-market assistance.
Retail investors can’t do institutions? My lord, the times have changed. Going back to this section, why did Dogecoin begin to explode at this time? In fact, this question can still be asked, when will the market value of Dogecoin surpass Bitcoin? Perhaps many people will find this question a bit whimsical and assert that Dogecoin has no value. Then, how to grasp the standard for measuring value?
When everyone, both inside and outside the circle, knows that Dogecoin is worthless but has a market value of tens of billions of dollars, it may have value inexplicably, just as Wall Street short-sellers think GameStop stock is not valuable. But retail investors can get rich from GameStop’s stock surge.
Following the trend and clinging together, Elon Musk broke the cup as a sign, and Dogecoin was soaring. Under the consensus of “Dogecoin can still skyrocket”, the market responded, because Dogecoin was scattered enough, and it was difficult for dealers to control the order and collect. The process of bargaining is the process of buying, and this will only make the price of Dogecoin higher. The shorts who have liquidated their positions have also become the best fuel for the rise of Dogecoin. Let us who are still floating in the market see A ray of dawn to get rich quick.
Can we still meet “Dogecoin”?
When the variant version of Dogecoin SHIB increased by 1278.72%, there were more reasons to explain why SHIB could rise so much in the market, but from the author’s personal point of view, perhaps the market has forgotten the original intention of encrypted assets, that is decentralization , Decentralization means that the community is dominated. The fact that SHIB can rise so much is actually a variant version of the above retail group to boost the stock price. Everyone is optimistic about SHIB’s future development prospects. The continuous rise of token prices promotes fomo sentiment and token economy. The model is completely decentralized, which is more fair, and the property of fairness is the first one that the dealer will not agree to.
Therefore, under the success of Dogecoin and SHIB, new and creative thinking and models continue to emerge. For example, have you seen a project with 35% of airdrop tokens? And all the tokens of this project are produced in a decentralized way, oh yes, except for the airdrop to V God and Musk 5% each.
This project is called Puppy Coin. Well, according to its official website, this project is a revolutionary experiment initiated by the decentralized community. The author agrees with this point. The airdrop ratio and the method of token distribution are indeed in line with the revolutionary experiment. .
Retail investors challenge institutions? Another purpose of Puppy Coin
By browsing the official website of Puppy Coin, the airdrop method of Puppy Coin is very interesting. As long as you hold Dogecoin on a whitelisted exchange supported by the community, you can enjoy the airdrop of Puppy Coin. Dogecoin holders are very friendly. After receiving the airdrop of Dogecoin, users can also directly mine on Dogecoin’s protocol. This airdrop method is also more friendly to exchanges: trading As long as you support Dogecoin, you can get an airdrop of Dogecoin. After this airdrop is given to Dogecoin holders, it can also increase user stickiness.
Here comes the question. What height can Doggcoin ultimately reach? It is difficult for us to say whether the market will embrace such a decentralized approach, and whether the consensus and power of retail investors can promote the development of the project itself. These issues are all open to question, that is, Said that whether the exchange will be optimistic about Puppy Coin and list Puppy Coin depends on retail investors’ confidence in Puppy Coin and their optimism in the future. For example, if Exchange A is on the whitelist of Puppy Coin’s airdrop, Exchange B If you are not on the whitelist, then users who hold Dogecoin on Exchange B will withdraw their Dogecoin to Exchange B in order to get the airdrop of Dogecoin.
If there are enough users withdrawing coins, the exchanges will be forced to seek cooperation with the Puppy Coin community, and the more exchanges that support Puppy Coin, the market performance of Puppy Coin will also be fed back. Every supported exchange will, They are all the victory of the development milestone of the Doggie coin stage, and finally promote the Doggie coin to become the mainstream currency in the market and become a role model for the latecomers. Perhaps this is the ultimate experimental goal of the Doggie coin community?
Up to now, Puppy Coin has obtained whitelist applications from four institutions (including ZB Exchange, CoinW Exchange, HOO Tiger Symbol Exchange, and HyperPay Wallet) and indicated that it will launch trading pairs. Uniswap has performed well. In the 15 days since its launch, the price has risen 23 times and the daily transaction volume has exceeded 2.6 million US dollars.
A single spark can start a prairie fire, and we may see more and more interesting community experiments to make the current crypto market more colorful.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.