What Dogecoin Taught Us and How It Influenced the Future of Finance
Dogecoin, once created as a joke, has brought together so many enthusiasts under its umbrella that it now seriously threatens to disrupt the traditional finance sector on a par with Bitcoin.
Today Wall Street periodically feels the consequences of “meme shares” a phenomenon that means stocks of companies that are actively boosting in popular social networks, as a result of which they receive explosive growth. One good example is the stock retailer GameStop, which was all over the news when the Reddit community r/WallStreetBets declared “war” on the biggest investors on Wall Street.
However, few suspect that the beginning of such phenomena was laid by Dogecoin itself back in 2013, when Billy Marcus and Jackson Palmer had fun creating their own altcoin amid general obsession with them. Hardly any of the founders of DOGE could have imagined that today their brainchild will become one of the main engines of the crypto market, having formed around itself a multimillion-dollar fan base led by billionaires and media personalities such as Elon Musk, Mark Cuban, Snoop Dogg and Gene Simmons.
Bitcoin needs a face
According to the creators of DOGE, many cryptocurrencies, including Bitcoin in 2013, were in the shadows, associated exclusively with the Silk Road trading platform and the darknet. Digital currencies needed to find a “face”. Therefore, Palmer and Marcus chose the “Doge” meme with a funny dog of the Shiba Inu breed as the thing that was constantly flashing before the eyes of people at that time. Gradually, from the “tips” that Reddit users threw to each other for interesting posts and good jokes in 2013, DOGE grew to 3.2 million dollars in daily trading volume.
While other coins like SexCoin or BBQCoin became fleeting "gags" coming and going into the archives of history, DOGE survived. Instead, the idea that digital currencies can become something more than a financial asset remained relevant. Dogecoin has become a cultural product used to exchange ideas and money between its fans, going from themed communities and jokes on Reddit to major financial markets and hedge funds.
This year, DOGE peaked at 0.70 and a market cap of 52 billion following widespread support for the token and market manipulation by some well-known personalities. Thus, the asset surpassed the capitalization of even such financial institutions as Barclays Bank with its 44 billion, Bank of New York 42 billion, and many others.
These events have left traditional finance experts scratching their heads. Their heads still wonder how a meme-based cryptocurrency could gain such value outside of the internet. Moreover, according to a recent survey of UK financial advisors, more than 90% of them would never recommend clients to invest in “meme” digital currencies or “meme stocks”.
And even though the market has cooled slightly today, and the excitement around DOGE has calmed down, what happened has left a significant mark on the financial sector, which will not disappear anywhere. Otherwise, such cases would not have been considered in the American Congress on the basis of the "scream" of hundreds of large corporations that suffered multimillion-dollar losses during the rapid growth of GameStop shares.
Owning DOGE today “be in trend” or “participate in crypto culture”. Investors have stopped seeing Dogecoin as a means of enrichment and are simply striving to become part of the community. Do not discount the spread of the #PersonalFinance hashtag, which has become even more popular on TikTok than the #Cooking and #HealthTips that have filled all the tags.
Either way, the community has no intention of leaving DOGE in trouble. Studying this token, we see what will happen to finance in the future: an open digital economy that intelligently combines technology and cultural heritage, where memes have become on a par with traditional assets.