Dogecoin team warns Dogechain is ‘another knockoff token’
Dogechain will offer DOGE holders access to DeFi, NFTs, and gaming, but Dogecoin warn not to risk your DOGE.
This follows an earlier tweet from Dogecoin developer @cb_doge, who posted that Dogechain is “another knockoff token,” while giving DOGE holders the heads up on influencers promoting the project.
Dogechain is not linked with #Dogecoin in any way.
➡️ It's another knockoff token.
➡️ Avoid the influencers collaborating with them.
➡️ Don't risk your precious Doge.
➡️ Share with other shibes.
➡️ Do Only Good Everyday! pic.twitter.com/b3AE97oNeP
— DogeDesigner (@cb_doge) July 27, 2022
Incidentally, DogeChain is also the name of Dogecoin’s official block explorer.
What is Dogechain?
Dogechain is billed as a layer 2 scaling solution enabling DeFi, NFTs, and gaming. However, per its whitepaper, DogeChain is built on the Ethereum-compatible Polygon Edge “private label” framework, not the Dogecoin network.
Dogechain claims to complement the original by bringing smart contract functionality, thus opening up additional use cases beyond just payments.
“WIth Dogechain, Dogecoin holders can do more than simply hodl and wait for Dogecoin to moon!“
Like the original, Dogechain’s stated philosophy revolves around inclusivity and valuing participants. The team also emphasized its “community-first approach,” saying there was no VC allocation of tokens.
“Dogechain stands for fairness and equal opportunity for all. Our goal is to create a blockchain that is truly owned by the people.“
Token distribution of “$DC” will occur “later this year” via an airdrop of snapshotted DOGE balances. The exact mechanics of the process will follow, with interested parties encouraged to join the Discord.
However, CoinMarketCap currently shows three tradable tokens with similar names: DogeChain, DOGECHAINU, and DOGECHAIN, all of which opened trading on August 16.
Dogecoin re-enters the top 10
Over the last seven days, Dogecoin jumped 23% amid a broader uptrend for dog-themed meme coins. During this period, there have been no new significant fundamental developments. This performance saw Dogecoin leapfrog Polkadot and re-enter the top 10.
DOGE spiked 16%, to as high as $0.08478, on August 14. In doing so, the $0.07561 resistance level has flipped to become support. However, over the last day, the third retest of $0.08892 resistance was rejected again in the early hours of August 17 (GMT).
Crypto investor and analyst Miles Deutscher attributed the recent buoyant price action to the launch of Dogechain. In the same tweet, he also made a case for meme coins acting as a “gateway” for the broader crypto market.
$DOGE is pumping following the launch of DogeChain.
But could this have broader implications for the crypto market?
Meme coins were highly efficient at capturing retail liquidity in 2021, with profits generally siphoning off into ulterior market sectors. 👇
— Miles Deutscher (@milesdeutscher) August 16, 2022