The top cryptocurrencies by market value, including Bitcoin and Ether, fell on Tuesday amid a sell-off. These include the meme-inspired cryptocurrency Dogecoin, which has fallen roughly 77% from its all-time high of nearly 74 cents in May.
But investor GlauberContessoto, whose Dogecoin holdings previously exceeded $ 1 million, isn’t worried.
“All you have to do is zoom out and relax,” Contessoto, 33, told CNBC Make It. While not a financial expert, he is optimistic that Dogecoin has hit rock bottom. The coin hit 16 cents on Tuesday morning before rising to 17 cents.
Between his savings and borrowed funds, Contessoto said he invested over $ 250,000 in Dogecoin on Feb.5, when the price was around 4.5 cents. About two months later, on April 15th, he became a Dogecoin millionaire on paper.
Since then, Contessoto has refused to sell despite the ups and downs of Dogecoin. Even in May, when the value of his holdings exceeded $ 2 million, he still didn’t move. Now that Dogecoin is trading at 17 cents, it continues to buy the dip.
“I can’t miss out on a good deal,” said Contessoto. Last week he bought over $ 5,300 worth of Dogecoin when it cost about 17 cents, he said.
“The Doge is my savings account,” he said.
At around 2:50 p.m. EST Tuesday, his Dogecoin holdings were worth $ 700,217.09.
Even so, Contessoto’s plan remains the same: “When I hit $ 10 million, I’ll take out 10%.”
Dogecoin is a cryptocurrency developed by software engineers Billy Markus and Jackson Palmer who decided to create a payment system as a joke to make fun of the wild speculation in cryptocurrencies at the time. Despite its satirical nature, some consider it a legitimate investment perspective. Dogecoin shows the face of the ShibaInu dog from the “Doge” meme as a logo and namesake. Launched on December 6, 2013, it quickly developed its own online community, reaching a market capitalization of over $ 85 billion on May 5, 2021.
Dogecoin.com advertises the currency as “fun and friendly internet currency” and points to its origins as a joke.
Elon Musk often mentions or talks about Dogecoin on his Twitter Account and has grown in popularity significantly over the past few years.
Dogecoin started with an offer limit of 100 billion coins, which would have been far more coins than the top digital currencies allowed at the time. By mid-2015, the 100 billionth Dogecoin had been mined and another 5 billion coins were put into circulation every year. Although there is no theoretical supply limit, the number of Dogecoins in circulation will only double in 20 years at this rate (the next doubling will be in 2075). There is no set upper limit for the total supply of Dogecoins. Nonetheless, Dogecoin founder Jackson Palmer announced in February 2014 that the limit would be lifted in order to consistently lower the inflation rate over time. In other words, the inflation rate will improve over time from 5% in 2015 to less than 4% by 2019, 3% by 2027, and 2% by 2035.
The Dogecoin Community and Foundation have promoted fundraising for charities and other notable causes. On January 19, 2014, the Dogecoin community launched a fundraiser to raise $ 50,000 for the Jamaican bobsleigh team that qualified but couldn’t afford the Sochi Winter Olympics. On the second day, Dogecoin worth $ 36,000 were donated and the Dogecoin to Bitcoin exchange rate rose 50%. The Dogecoin community also raised funds for a second Sochi athlete, Shiva Keshavan.
Inspired by the fundraising campaign at the Winter Olympics and smaller successes in collecting donations, the Dogecoin Foundation, under the direction of Eric Nakagawa in cooperation with Charity: Water, began to collect donations for the construction of a well in the Tana Basin in Kenya. They wanted to collect a total of 40,000,000 (then 30,000 US dollars) of Dogecoin before World Water Day (March 22nd). The campaign was successful, raising funds from more than 4,000 donors, including an anonymous benefactor who donated 14,000,000 Dogecoin (approximately $ 11,000).
On March 25, 2014, the Dogecoin community successfully raised 67.8 million Dogecoins (around $ 55,000 at the time) to sponsor NASCAR Sprint Cup Series driver Josh Wise. Nicknamed the “Moonrocket”, the 98 car had a paint job sponsored by Dogecoin / Reddit and was driven by Wise at Aaron’s 499 on Talladega Superspeedway. Wise and the car were featured for almost a minute while race commentators discussed Dogecoin and the crowdfunding effort while finishing twentieth and narrowly avoiding several wrecks. On May 16, Wise won a spot in the Sprint All-Star Race through an online fan vote against the household name Danica Patrick, largely due to the efforts of the Dogecoin Reddit community. He finished the race in fifteenth, the last car driven. In the following race in the Coca-Cola 600, Wise debuted with a Dogecoin / Reddit.com helmet. As a thank you to the community, Wise later announced that the car would be used again in the Toyota / Save Mart 350 and the GEICO 500. He finished the race in 28th place, in part due to a fuel problem; he was in twelfth place after a gas and go pit stop, but the gas did not last long enough, which resulted in a second pit stop that led him to the back of the field. Eutechnyx, developer of the NASCAR ’14 video game, added the Dogecoin car as a drivable car in a DLC pack.
On March 2, 2021, NASCAR Xfinity Series team BJ McLeod Motorsports announced that Dogecoin will sponsor the №99 car in the Alsco Uniforms 300 in Las Vegas alongside Springrates; Stefan Parsons drove the car to 36th place as problems with the fuel line prevented him from finishing the race. Coincidentally, his father Phil was the owner of the team that set up the original Dogecoin-sponsored car in 2014.
While the price of Dogecoin is very volatile, this volatility has its advantages. It enables cryptocurrency day traders, i.e. traders who get in and out of a trade within a day, to compensate for this volatility and to benefit from the extreme fluctuations in value of Dogecoin.
Furthermore, while the cryptocurrency started out as a joke, it is certainly not anymore. In May 2021, it was the fourth largest cryptocurrency in the world with a market capitalization of $ 78 billion. By August 2021, it fell to seventh place with a market capitalization of $ 58.5 billion, behind Bitcoin, Etherum, Cardano, Binance Coin, Tether and XRP, respectively.
A significant advantage of Dogecoin is its relatively low energy consumption for transactions compared to other cryptocurrencies (0.12 kilowatt hours per transaction (kWh). Bitcoin consumes 707.6 kWh and ether consumes 62.56 kWh.
Elon Musk frequently uses his Twitter platform to express his views on Dogecoin, which has led some to claim that his actions amount to market manipulation, given the price of Dogecoin shortly after the Dogecoin tweets posted by Elon Musk often experiences price movements. However, since cryptocurrencies aren’t regulated like stocks, it doesn’t technically do anything illegal.
According to CNN Business, Musk’s first dogecoin-related tweet occurred on December 20, 2020. Musk tweeted “One Word: Doge”. Shortly afterwards, the value of Dogecoin rose by 20%.
This was followed by a series of Dogecoin-related tweets from Musk in early February 2021 with the headline “Dogecoin is the people’s crypto” and “No ups, no downs, just Doge”. After those tweets, Dogecoin increased in value by about 40%.
As reported by CNN, the price of Dogecoin rose more than 100% on April 15, 2021 after Musk tweeted a picture of Joan Miró’s “Dog Belling at the Moon” painting entitled “Doge Belling at the Moon”.
As reported by CNBC, Dogecoin price rose 11% on May 20, 2021, shortly after Musk tweeted a Doge-related meme.
As Newsweek reported, on May 24, 2021, the price of Dogecoin rose 10% in the hours after Musk tweeted a Reddit link allowing users to submit suggestions on how to improve the cryptocurrency.
The Dogecoin Foundation is a non-profit organization that was formed to provide:
- Support the Dogecoin cryptocurrency through development and advocacy.
- Dogecoin Brand Defense to Prevent Abuse and Fraud.
- A roadmap and governance for the future of Dogecoin.
The foundation was established in 2014 by members of the Dogecoin team to lead and support the Dogecoin project. In 2021, the foundation was revitalized by members of the original core team along with fresh faces and new seasoned advisors ready to grow Dogecoin for the next decade.
You can read about the foundation’s guiding principles in the Dogecoin Manifesto.
The Dogecoin Board of Trustees meets monthly to discuss issues related to the Dogecoin project.
The Dogecoin Manifesto
We are Dogecoin, the random crypto
Movement that makes people smile.
We develop a currency for the people
and we strive to do only good every day.
Through this work we have come to appreciate:
being sensible, we value utility over technical brilliance.
being friendly, we value individuals and interactions over for-profit economics.
being greeting, we value cooperation and trust over competition and exclusivity.
being Reliable, we value functioning solutions before delivery speed.
That is, while the articles have a value
on the right we value the elements on the left more.
– Billy Markus
– Gary Lachance
– Jens Wiechers
– Max Keller
– Ross Nicoll
– Timothy Stebbing
With all of this information that the Dogecoin future shows, it is up to you to decide whether to see $ 1 or a simple $ 10 in the near future!
Journalist. Always hungry for entertainment. Everything that starts with “so, last night …” sounds exactly. Currently making web more fun place.