Dogecoin is a cryptocurrency created in December 2013 as a joke by software engineers Billy Markus and Jackson Palmer. It is based on the famous “Doge” internet meme, which features a Shiba Inu dog. Despite its origins, Dogecoin has become a popular cryptocurrency, with a large and dedicated community of users and holders.
The cryptocurrency operates on a decentralized, peer-to-peer network, allowing quick and inexpensive transactions. Dogecoin is based on the same technology as Bitcoin, known as the blockchain, which enables secure and transparent record-keeping of all transactions on the network.
One of the critical features of Dogecoin is its relatively low price, which makes it accessible to a wide range of users. Additionally, the Dogecoin community is known for its philanthropic efforts, using cryptocurrency to raise funds for various charitable causes.
Dogecoin can be bought and sold on various cryptocurrency exchanges and used to make purchases from merchants who accept it as payment.
Despite its light-hearted origins, Dogecoin has seen significant price volatility, with its value rising and falling dramatically over time. Nevertheless, its strong community and growing acceptance as a form of payment make it an exciting choice for those looking to enter the world of cryptocurrency.
Elon Musk, the CEO of SpaceX and Tesla, has significantly impacted the price of Dogecoin through his tweets and statements about the cryptocurrency. Musk has been a vocal supporter of Dogecoin on social media, often tweeting about it and making jokes about its potential.
His tweets and statements have caused Dogecoin’s price to spike, as many of his followers and investors consider his words to endorse the cryptocurrency. Some of his tweets have even caused the price of Dogecoin to rise by more than 50% in a single day.
Musk has also used Dogecoin as a form of payment for a Tesla car and said he would put a literal Dogecoin on the literal Moon.
Twitter has played a significant role in the promotion and awareness of Dogecoin. The cryptocurrency has a large and dedicated community of users and holders on the platform, who often use Twitter to share information and updates about Dogecoin and discuss its price and potential.
Many influential figures, including Elon Musk, have used Twitter to express their support for Dogecoin, which has helped to increase interest in the cryptocurrency among the wider public. As a result, many people have invested in Dogecoin due to the tweets of these figures.
Twitter also plays an important role in promoting Dogecoin by providing a platform for users to share information about the cryptocurrency, including news, updates, and trading tips. This has helped build a strong community among Dogecoin supporters and has played a major role in the cryptocurrency’s growth.
Additionally, many Dogecoin enthusiasts use Twitter to share memes and jokes about the cryptocurrency, which has helped to generate buzz and interest in Dogecoin, particularly among younger investors.
Blockchain analytics company Elliptic has found that Dogecoin is increasingly used for illegal activities such as terrorism financing, Ponzi schemes, and worse. The company said that many bad actors are using the coin, which was popularized by Elon Musk, to facilitate transactions in the millions.
Most of this activity is fraud and scams, but it also includes more serious crimes such as terrorism financing. In July 2021, the Israeli government seized $40,235 of Dogecoin from a wallet believed to be associated with the Hamas group.
The top 50 Dogecoin (DOGE) investors collectively hold 87.1 billion tokens worth roughly $12.35 billion at current prices, according to blockchain analytics platform Lookonchain. These investors hold around 63.71% of the memecoin’s total circulating supply, accounting for around 66.5% of the token’s market cap. The analysis showed that over the a period 30 days, the top 50 DOGE holders reduced their holdings by 21 million tokens, worth approximately $3 million.
However, over the week of October 23, 2022, the top 50 investors liquidated 761 million tokens valued at around $110 million, indicating that the top investors cashed in part of their profits while the price of memecoin’s price spiked last week following news of Tesla CEO Elon Musk’s Twitter acquisition. The analysis added that the top 50 DOGE investors bought 484 million DOGE tokens worth $70 million in the final week of October.