Dogecoin started off as a joke cryptocurrency but now has a market capitalization of $7 billion and a huge global following. How did it all happen?
Dogecoin was a parody cryptocurrency created by Adobe Product Marketing Manager Jackson Palmer and software engineer Billy Markus in late 2013. The two set out to make the project “as ridiculous as possible” and centered it around a popular internet meme of a Japanese Shiba Inu “doge” that would say nonsensical phrases like “much wow” and “such tired.”
The total supply of 100 billion coins was another one of the “wacky decisions” the co-founders made to “make [dogecoin] … undesirable as a cryptocurrency so that it [didn’t] become serious.” Eventually, though, the supply limit was removed to promote the use of the crypto token and discourage hodling.
Dogecoin was forked from Lucky Coin – a fork of Litecoin, which is a fork of Bitcoin – because Lucky Coin had a random block reward schedule where miners could receive zero or potentially thousands of free coins for producing new blocks. Palmer and Markus implemented this feature in Dogecoin, hoping the randomness would irritate doge miners and prevent them from actually using the token as a payment solution long-term. Just one month after the project launched, however, the official Dogecoin website was visited more than a million times and quickly amassed a substantial following.
In March 2014, the block reward schedule was decidedly changed to a fixed one similar to bitcoin’s and most other cryptocurrencies to make it more feasible as the number of users continued to grow exponentially.
Dogecoin didn’t take itself seriously
Dogecoin officially went live on Dec. 6, 2013, and became an instant hit with the community. Not only was it a comical cryptocurrency that could be easily mined and cost fractions of a cent to buy, but the outrageousness of its creation came as a welcomed breath of fresh air for people who just wanted to freely play…