Over the last few weeks, the Gamestop saga has been all the news, as Redditors made its stocks soar. A collateral effect of that entire episode has also been the rise of a certain cryptocurrency that's becoming all the rage.
Dogecoin started out as a joke in 2013, but its value is up by 696% this year so far. It's now the world's number 12 largest cryptocurrency, with a market cap of $6.1 billion.
It was invented by software engineers Billy Markus and Jackson Palmer. Cryptocurrency is any digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions.
Dogecoin features the face of the Shiba Inu dog from the 'Doge' memes as its logo, and that's also where it gets its name from.
In fact, in January 2021, Dogecoin went up over 800% in 24 hours due to attention from Reddit users, encouraged by the GameStop short squeeze, and Elon Musk's support.
Elon Musk put out a bunch of tweets about Dogecoin, and so did Snoop Dogg and Gene Simmons. All this attention further accelerated its value.
The currency has been marketed as a payment system that is instant, fun, and free from traditional banking fees. In fact, Musk even said,
Dogecoin might be my favourite cryptocurrency. It’s pretty cool.
Dogecoin became the most tweeted-about cryptocurrency in a single day, even beating bitcoin. This dramatic surge has led to a spike in popularity, as well as the fact that the entire thing is absolutely ridiculous from an aesthetic standpoint. There have been some super funny tweets about it as well.
Elon is literally going to send $DOGE to Pluto.— David Gokhshtein (@davidgokhshtein) February 7, 2021
Super bowl coin toss today is gonna be with a dogecoin— Taryn (@24taryn) February 7, 2021
I bought some shares in doge coin pic.twitter.com/jBV3nbQQFV— Sinh Tố Bruh (@SleepyChu123) February 8, 2021
🎶 Who let the Doge out 🎶— Elon Musk (@elonmusk) February 7, 2021
So that's the story of this meme-based currency that's become a global phenomenon. Pretty wild, huh?