Dogecoin - Inside the Wolfsschanze
With the recent collapse of Luna and the accelerating loss of confidence in Tether, there is opening up some space in the top 10 cryptocurrencies as measured by market cap. You may expect the next ETH beater to fill this space, but no, Dogecoin, the top dog for meme coins steps up. Woof woof!
Until now I haven't even looked or considered looking at the tokenomics of Dogecoin as it seems like a joke and therefore why would I waste my time? However, perhaps there is something we can learn from Dogecoin after all.
Dogecoin was a fork from Litecoin and had an initial fixed supply of 100 billion. The Developers removed this requirement and there is mining of around 5 billion Doge each year according to The Kraken. This has ballooned the supply to the current 132.67 billion Doge in circulation (source) and increasing.
According to the Simetri ratings, Dogecoin has a very low score because it has no roadmap, no active development and no use-case except as a charitable token and some tipping.
The only positive for Dogecoin is the engaged and enthusiastic community. This was surprising to me as Dogecoin sounded the worst possible crypto you could invest in and my initial fears that it was a joke before I even checked were confirmed. Do these people like losing money?
On the report by Simetri, it did say they were charitable.
I went in search of the community. I was expecting to find a community like Hive with lots of activity and useful data and information on Dogecoin. Or perhaps like the Bitcoin Maxists who are really supportive of the project. But as I entered the wolf's lair that is reddit.com/r/dogecoin, I was in for a surprise.
Instead of any tokenomics information, I was just confronted by endless memes like this one:
and others about a dog sitting at a computer saying Wow!
It did not seem very cultish at all.
Dogecoin is supposed to be a decentralised token, yet the developers made changes so the supply could be unlimited. That doesn't sound very decentralised to me.
As I delved further and further into the home of Dogecoin, I encountered meme after meme. Each one was less funny than the last.
Upon seeing the Dogecoin moon, it reminded me of the dancing duet to some Dogecoin elevator music by Nat on TikTok. This is the PG version which I saw.
According to BitInfoCharts.com, there seem to be around 5 whales who control around 42% of the total Dogecoin supply.
Dogecoin is often tweeted by the establishment's top boy Elon Musk. This often sends his followers into a frenzy to buy Dogecoin, a Tesla or both. This is of course when he is not in the studio creating the latest CGI for his Falcon rockets.
Elon likes to have fun, and at the 2018 Met Gala wore a jacket saying Novus Ordo Seclorum - New World Order. At the 2022 Met Gala, he was a little more low-key and just turned up with his mum.
The returns on Dogecoin are also not so good. We have since its ATH in May 2021 - a month after Elon's famous tweet, a perfect top left to bottom right chart. And the trend continues as you would expect with the current 1y return showing -78,5%, which is above average for the altcoins being smashed in the current bear market.
The website dogecoin.com is very sparse on details about the token and is more focused to redirect you to Reddit and dogecoin memes. The whitepaper is the same and there isn't any useful data either.
Elon fanboys will be hoping that he buys Twitter and makes Dogecoin the tipping token used there. But will this be enough to save the Doge?
-Dogecoin is in the top 10 cryptos
-Claims decentralisation but whales own >42%
-There is no roadmap or governance
What are your thoughts on Dogecoin?
Let me know in the comments.
Thanks for reading.
https://www.pexels.com/photo/gold-and-black-round-pendant-7767506/Dogecoin - Inside the Wolfsschanze