On 20 November 2022, Alex Valaitis, Founder of Web3 consulting firm W3T, shared his thoughts on Dogecoin ($DOGE).
Popular meme-based cryptocurrency Dogecoin ($DOGE) was initially released on 6 December 2013, as a “fun and friendly internet currency.” It was created by Billy Markus and Jackson Palmer. Dogecoin is “a decentralized, peer-to-peer digital currency” that has as its mascot “Doge”, a Shiba Inu (a Japanese breed of dog).
Since then, its popularity has substantially increased, especially in the past couple of years, mostly thanks to support by billionaires Elon Musk and Mark Cuban (the majority owner of the professional basketball team Dallas Mavericks, as well as one of the “sharks” on the highly popular reality show “Shark Tank” , to the point that it is currently the 9th most valuable cryptocurrency, with a market cap of over $10.06 billion. In fact, in 2019, Musk said that $DOGE might be his favorite cryptocurrency.
Following the completion of his research on Dogecoin, Valaitis took to Twitter to summarize his main findings, a few of which we have highlighted below:
- “One concerning finding I did find from my research was the high concentration of $DOGE in a few wallets: -Top wallet holds 28% of supply -Next 10 wallets hold 22% of supply -Next 121 wallets hold 21% of supply For context, Satoshi’s wallets only account for ~5% of #btc supply“
- “As of today, the block reward is a fixed 10,000 DOGE per block, with 1 block being mined every minute. This means that there are 5 billion new DOGE mined every year, which sets the current inflation at around 3.87% per year. The current circulating supply of $DOGE is 132.6B“
- “… Dogecoin’s most promising use cases seem to be as a payments solution built on top of existing platforms & businesses, such as massive retailers/social platforms. In other words, @Dogecoin seems to want to COMPLEMENT existing businesses (vs replace them).“
- “… I believe Dogecoin is one of the most misunderstood blockchains in crypto. It would have been easy for me to dismiss Dogecoin and chosen to never research it, however, I’m glad I took the time to dive deep.“
Charles Hoskinson, Co-Founder and CEO of IO Global (aka “IOG”, formerly known as “IOHK”), the company responsible for Cardano’s R&D, seems to believe that Musk is going to bring $DOGE to micro blogging platform Twitter, which the Tesla CEO purchased recently for $44 billion.
On 28 October 2022, the IOG CEO said that he could see Musk somehow merging Twitter with Dogecoin:
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