Why Dogecoin's Power Keeps Increasing
Why Dogecoin's Power Keeps Increasing
Hey everyone,
The last week has seen one positive development after another for Dogecoin.
With the release of Robinhood wallets drawing ever closer, the possibility of Tesla accepting Dogecoin, and grassroots projects emerging from the Doge community, Dogecoin looks like it’s just getting started.
Let’s take a look at the biggest news from the world’s leading form of dog-meme money.
The Dogefather and Robinhood wallets
Dogecoin and Robinhood have had a rollercoaster relationship in 2021. The retail trading app has done a lot to raise Dogecoin's profile, but has a long way to go to make up for some bad mistakes.
On the positive side, Robinhood listed Dogecoin before other big exchanges like Coinbase and Gemini.
Many people made their first Doge purchases on Robinhood.
Without a doubt, Robinhood helped Dogecoin adoption by making it easily accessible to millions of investors.
Some of Robinhood's actions have also hurt Doge.
In January, it halted trading during Dogecoin's run from less half a penny to seven cents.
Robinhood CEO Vlad Tenev said Robinhood was not directly responsible for the outage, placing responsibility with its clearinghouse.
In April Doge trading stopped again during another big move up.
It's possible the price of Dogecoin could've kept going higher if it weren't for the outages.
Tenev has received public backlash and testified to Congress about Robinhood's issues.
Financial regulator FINRA fined Robinhood $70 million for trading halts and other actions that hurt investors.
On Twitter, Tenev has likened himself to Kylo Ren, the Star Wars villain who is ultimately redeemed. So far, he hasn't atoned for Robinhood's mistakes with Doge, though he has a big opportunity.
The most pressing issue right now for Robinhood is crypto wallets.
Unlike other crypto exchanges, Robinhood does not allow users to transfer their Dogecoin off its platform.
Dogecoin purchased on Robinhood can't be used for tips or payments, potentially hurting its value.
Robinhood has promised to fix this by adding wallet functionality to its app.
Robinhood's COO Christine Brown is overseeing the wallets project. She hasn't yet given a timetable for when they'll be added.
On July 1st, Elon posted a meme of Don Corleone expressing disappointment about late computer code along with the text "Release the Doge!"
There have been two major code updates on the horizon for Dogecoin: the Core Development update and Robinhood wallets. Doge Core Developers appear to have delivered. Robinhood hasn't--yet.
Was the Dogefather sending a message to Robinhood that wallets are taking too long?
Elon has called for the breakup of large Dogecoin holdings, so no single entity has too much influence over its price.
Robinhood is believed to have the largest wallet, and the only wallet with more than 5% of existing Dogecoin.
Adding wallets would literally "Release the Doge!" from Robinhood's control.
What could be causing the delay?
Robinhood has been receiving increased regulatory attention in preparation for its Initial Public Offering later this year.
In particular, the SEC has scrutinized Robinhood's crypto business.
As part of the process, Robinhood disclosed to the SEC that most of its $11.6 billion worth of crypto was Dogecoin. 34% of Robinhood's crypto revenue came from Doge during the first quarter of 2021, which amounted to 6% of its total revenue.
Robinhood has a vested interest in Doge. Robinhood stands to make a lot of money from Doge's success.
If the SEC process is delaying wallets, it wouldn't be the first time Elon has found himself in a disagreement with the regulatory agency.
In June, the SEC complained that he violated an agreement to get pre-approval for tweets that could impact markets. No punishment was issued.
So far, Elon has kept silent about the SEC when it comes to Robinhood and Doge. At the same time, he's been tweeting about other examples of institutional overreach, like restrictions on rocket launches and Britney Spears's conservatorship.
If the SEC isn't standing in their way, Robinhood could release wallets soon with the hope of getting more users its join its platform ahead of the IPO.
It might also wait until after going public to release wallets, knowing that some people will move their crypto elsewhere as soon as they're able.
A poll from major Dogecoin community member Dogecoin Rise showed a little more than half of Robinhood Doge holders plan to keep their coins on the platform once wallets are made available.
Going public means Robinhood will become accountable to shareholders, who could demand crypto wallets, just as Coinbase shareholders pressured the flagship exchange to list Doge.
Robinhood hasn't set date for its IPO, but it is expected to happen in 2021.
The moment Robinhood enables wallets, billions of Dogecoins will become available for transactions, giving businesses another huge reason to accept it.
The breakup of Robinhood's big wallet into thousands of smaller retail wallets could be the next major catalyst for Dogecoin to increase both price and adoption.
Robinhood and Dogecoin have been on a wild ride in 2021.
The Dogefather is keeping the pressure on Robinhood to make up for its mistakes and deliver wallets. The #DogeAarmy has every reason to do the same.
Dogecoin for Tesla?
Since Tesla paused Bitcoin payments over concern about fossil fuel emissions from mining, the environmental impact of money has been getting increased attention.
Dogecoin stands to benefit in a big way from this new focus — if major companies decide to accept it for payments.
Cryptocurrency as a whole — including both Bitcoin and Dogecoin — is establishing itself as a greener alternative to government-issued fiat money.
In an effort to quantify Bitcoin's environmental impact, the Bitcoin Mining Council released its first quarterly report on renewable energy use among miners.
Based on survey data from miners, the Mining Council estimated that 56% of worldwide Bitcoin mining uses renewable energy.
In a June tweet, Elon said Tesla would resume accepting Bitcoin for vehicle payments when miners used at least 50% clean energy "with positive future trend."
Is the BMC report enough justification for Tesla to resume accepting Bitcoin?
The question of cryptocurrency payments is clearly on Elon's mind — and he's not just thinking about Bitcoin.
In response to a meme depicting Jeff Bezos and Richard Branson being chased away by a giant Shiba Inu, Elon asked, "But can I pay in Doge?"
When it comes to environmental branding, cryptocurrencies like Dogecoin and Bitcoin have an advantage over fiat currencies — especially the US dollar.
The US dollar undergirds the global oil industry. Oil-exporting countries are usually paid in dollars.
Some crypto-advocates have seized on this fact to paint a contrast against the dollar, emphasizing the term "petrodollar" to highlight its negative environmental impact.
The environmental harm caused by the oil industry was made visible when a gas pipeline ruptured in the Gulf of Mexico, causing a giant fire in the ocean. The event inspired a flurry of memes from the Doge community.
Environmental arguments for crypto will grow stronger as it establishes itself as a sustainable alternative to fiat currencies,
By accepting cryptocurrency again, Tesla could accelerate the shift toward more sustainable payment methods.
Dogecoin is well positioned to take advantage of this shift. It uses less energy per transaction than Bitcoin, and has none of the negative associations of fiat.
Could Tesla decide to accept Bitcoin and Dogecoin in one swoop?
Tesla and Doge have the potential to be a powerhouse combo: Tesla benefits by associating with Dogecoin's fun brand and sustainability, while Doge gains its biggest institutional supporter.
Thousands of Doge investors would have to at least consider buying Teslas with their crypto.
Cryptocurrency is an advanced monetary technology, with clear advantages over fiat in terms of sustainability and branding.
Crypto's rise is giving people a choice about what kind of monetary system to participate in.
In a race to become the "payments crypto" of earth, Dogecoin's low environmental impact and good vibes give it a leg up on the competition.
Dog Dollar Explosion
Dogecoin's explosion into public awareness has led to a boom in dog-meme cryptocurrencies looking to replicate its success.
The trend of Doge imitators is a testament to the unstoppable power of the Doge meme.
Intentional or not, some of Elon's tweets have drawn attention to these imitators, leading to massive price rallies in alternative dog coins.
A July 1st tweet by Elon caused Dogecoin spinoff Baby Doge Coin to double in price.
Baby Doge is a token that operates on the Binance Smart Chain. Its creators describe it as a literal child of Dogecoin:
"Baby Doge seeks to impress his father by showing his new improved transaction speeds & adorableness."
Baby Doge isn't the only crypto to leverage Dogecoin's branding for its own benefit.
After Elon tweeted "My Shiba Inu will be named Floki," Ethereum token Shiba Inu shot up shot up 25%.
Another token, Floki Inu, made days after the tweet, rose 3500% before retracing to its original price.
The emergence of Dogecoin spinoffs has raised a thought-provoking debate on social media.
Many Dogecoin investors are hesitant to dabble in alternative dog money.
The #DogeArmy is among the most loyal communities in all of crypto. It's natural for there to be a little doubt about imitators looking to capitalize on Dogecoin's phenomenal brand.
At the same time, Dogecoin has infused the larger crypto community with positive vibes, leading to a reduction in crypto tribalism.
The Doge community ethos encourages lighthearted fun and inclusivity. Competition among dog coins is unlikely to become too intense.
In the bigger picture, the emergence of alternative dog-meme cryptos shows how powerful the Doge meme has grown in 2021.
Dogecoin has been successful because people have discovered that they like to use money that derives its value from memes and dogs.
Just as Bitcoin spawned alternative cryptocurrencies, Dogecoin might be in the early stages of birthing a vibrant ecosystem of dog-themed memecoins.
Memes succeed when they spread and evolve. The more that dog currencies proliferate, the stronger the Doge meme becomes.
All money is a meme. 2021 may be the year people decide they'd rather put dogs on their dollars than anything else.
Grassroots Doge Projects
Dogecoin is a decentralized cryptocurrency based on a meme. Its brand is free for anyone to use, no permission needed.
Projects that align themselves with Dogecoin can instantly tap into its reservoirs of humor and positivity.
Over the past month, details have emerged about two exciting Dogecoin community projects: Million Doge Disco and Dogepalooza.
Million Doge Disco is an augmented-reality game designed for mobile phones, similar to Pokemon Go.
The game allows users to drop and collect dancing Doge NFTs across the world. The NFTs contain Dogecoins.
Million Doge Disco's creator, Gary Lachance, said he hopes the game grows to become an an additional layer of digital reality that allows "anyone, anywhere to instantly step into a parallel dimension alive with sound, light and positive vibes."
Like his previous project Decentralized Dance Party, Lachance conceived Million Doge Disco as "a master plan to get the entire world dancing together."
Lachance believes the game could be a way to spread "Doge consciousness", the "notion that silliness is next to godliness."
Another grassroots Doge community project is Dogapalooza.
The Dogecoin festival will feature "live entertainment, drinks, food, Dogecoin merchandise and an all-around celebration of Doing Only Good Everyday." It will take place somewhere in Texas in October of 2021.
Festival organizer Coco Chanel Adair said Dogepalooza will be family friendly during the day and adult-focused at night. Legendary singer Dionne Warwick will perform at the event.
In May, Elon gave his endorsement to a Doge festival, tweeting that the idea "Sounds kinda fun."
Dogepalooza has big aspirations, hoping to replicate itself in other cities and countries in the future, with the goal of becoming a world-wide event.
Individuals pursuing big Doge-related ventures is a sign of the community's robust health.
The Doge meme is not relegated to crypto alone. It can be combined with other projects to the mutual benefit of both.
Projects that associate themselves with Dogecoin stand to gain from its immaculate brand. When these projects succeed, they help Dogecoin and its community grow stronger.
As the Doge meme moves out into the world, more people will discover what the Internet already knows — associating with Doge gives any project an instant shot of positivity.
Doge power move
Dogecoin and its community of loyal shibes continue to build momentum into the second half of 2021.
Robinhood wallets have the potential to revolutionize monetary transactions by unleashing billions of Dogecoin on the unsuspecting global financial system.
Tesla accepting Dogecoin looks inevitable, and the move would mark a milestone for institutional Doge adoption.
While waiting for these milestones, the #DogeArmy is taking its future into its own paws, debating the pros and cons of the dog-money boom and launching grassroots Doge-themed projects.
With each passing week, the power and spirit of Doge only grows stronger.
Dogey Treats: News Bites
Dogecoin Core Developer Ross Nicoll announced his two nodes were running the new Dogecoin Core 1.21 upgrade.
Gemini raised interest rates for Dogecoin to 7.4% for investors who store it on Gemini Earn.
Burger King responded to a call to accept Dogecoin by tweeting "much burger." McDonalds continued interacting with Dogecoin tweets.
One Congressman criticized Dogecoin while another disclosed he'd bought some.
Coinbase is building an office in India on the heels of a report that crypto investments in India surged by 19,000% in the last year.
Starlink expects to have half a million users within the next 12 months, and has unannounced partnerships with telecom companies in two major countries. Members of the Cherokee Nation announced they are working on using Starlink to connect rural tribal communities to the Internet.
The California Dogecoin is a professional baseball club that describes itself as a "unique mashup of family fun and crypto currency promotion."
YouTuber Trey's Trades said he thought there are only three "Ape stocks"--AMC, GameStop, and Dogecoin.
Carole Baskin from The Tiger King promoted Dogecoin.
A thread on Dogecoin's Italian roots.
Dogebeans cafe is opening in Louisville, KY.
Real Fake Doge CEO greg was proposed to be the next guy on The Bachelor. A one-of-a-kind gregcoin NFT was auctioned for 2.87 Ethereum, with half of the proceeds donated to the American Cancer Society.
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Memes of the week
Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
Disclosure: I currently own some Dogecoin, Bitcoin, and Ethereum. At the time of publication, Dogecoin is around $0.21 per coin.