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Dogecoin hasn’t all the time been a ‘enjoyable meme coin’

02/28/2021

Do you know that Dogecoin used to sponsor a NASCAR driver? Be taught some unbelievable tales behind Elon Musk’s “favourite” cryptocurrency.

Dogecoin (DOGE) would possibly seem like a enjoyable meme coin, notably as its worth has completely skyrocketed in 2021.

However behind the harmless Shiba Inu canine cartoon are some horrific tales. These shopping for the cryptocurrency attributable to shilling and jokes from Tesla and SpaceX CEO Elon Musk, most certainly do not know of DOGE’s early days.

DOGE/USD 1-day candle chart (HitBTC). Supply: Tradingview

The early days

Launched by software program engineers Billy Markus and Jackson Palmer in December 2013, Dogecoin’s protocol adopted Luckycoin and Litecoin (LTC) proof-of-work algorithm utilizing Scrypt know-how.

It began again on Christmas day, 2013, when Dogewallet introduced that its webpage had been compromised, inflicting customers to ship funds to the hacker’s handle. The $12,000 price of customers’ cash misplaced was absolutely reimbursed by Dogecoin Basis Board Member Ben Doernberg, which included community-funded donations.

What number of occasions have you ever heard about altcoins or startups specializing in social community micropayments utilizing cryptocurrency? Impressed by the Bitcointip venture, which had been occurring for over a yr, the Dogetipbot service was launched, enabling automated DOGE tipping on Reddit, Twitch and Twitter.

Sadly, Dogetipbot’s creator cashed out the complete stash in 2015, which later led to the service’s chapter in Might 2017.

The spectacular rise and fall of Dogecoin’s early days. Supply: CoinMarketCap

A lot sponsorships, such exit scams

Including to Dogecoin’s unorthodox origins, there’s the “Wolong” story, an lively pseudonym on IRC and Reddit buying and selling teams again then. By benefiting from the Jamaican’s bobsled staff sponsorship announcement, this dealer supposedly coordinated whales to pump DOGE by 600% in Jan. 2014.

A well-documented piece attributed to this individual circulates on the net, describing each transfer behind these coordinated pump efforts. Extra curiously, the talked about private and non-private dialogue teams are eerily much like the current r/SatoshiBets actions behind the more moderen 2021’s Dogecoin 980% pump.

DOGE/USD worth July 2014- April 2015 (HitBTC). Supply: Tradingview

Lastly, in October 2014, the Moolah altcoin trade introduced it was shutting down and submitting for chapter safety, marking one other sturdy worth correction as seen within the chart above.

Among the many buyers who have been victimized are Dan Wasyluk and his colleagues, dropping a complete of 750 BTC. Again then, not so many exchanges listed DOGE. Thus, Moolah did present some very important infrastructure to the net group on the time.

To sum up, Moolah’s founder “Alex Inexperienced,” managed the marketing campaign for a NASCAR driver sponsorship, along with financing quite a few Dogecoin meetups and Twitter promotions.

Sure, it actually occurred, a Dogecoin-sponsored racing automotive. Supply: Reddit

Finally, individuals discovered that “Alex Inexperienced” was an alias utilized by Ryan Kennedy, who was sentenced to 11 years jail time for a number of crimes, together with rape.

Regardless of its early darkish days that have been full of pump and dump exit scams, nevertheless, Dogecoin seems to have discovered its area of interest within the cryptocurrency house and with a robust on-line group. Its Reddit subforum, for example, has over a million subscribers immediately.

Subsequently, Dogecoin’s risky beginnings will probably be forgotten. However, DOGE actually has a protracted historical past of individuals utilizing it to pump and dump their luggage means earlier than Elon Musk probably even knew about his favourite meme-inspired cryptocurrency.

The views and opinions expressed listed here are solely these of the author and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer entails danger. It is best to conduct your individual analysis when making a choice.