Dogecoin, a meme coin aggressively pushed by billionaire Elon Musk, plunged by 9.49 percent in the last 24 hours to 0.24853 a coin after hitting a record-high of $0.74 on May 8, 2021.
The coin that started as a joke has gained 5,180.84 percent from the year to date with the total supply hitting 129.97 billion.
In the last 24 hours, investors traded dogecoin worth $679.40 million at an average transaction fee of $0.639526.
Elon Musk had aggressively pushed dogecoin and at some point signals, Tesla could adopt the meme coin as payment for its products in replacement for the out of favour Bitcoin.
A large number of cryptocurrency investors blamed Elon Musk for the current downturn of the entire crypto space with Anonymous, a decentralized international activist/hacktivist collective/movement widely known for its various cyber attacks against several governments, government institutions and government agencies, calling him an opportunist with his overvalued product, Tesla.
The decision of Tesla to pull the plug on Bitcoin by halting its acceptance as payment for its vehicles kick-started the current bearish trend but it was escalated by China’s action – banning banks from facilitating cryptocurrency payments like Nigeria.
However, it would be extended by the Federal Reserve’s new hawkish stance as investors are expected to shift their investment interests from haven assets like gold, unregulated cryptocurrency and others to bonds and other dollar assets in general.
Elon Musk Confronts Binance CEO Over Dogecoin Glitch
Tesla CEO Elon Musk has challenged the Binance Chief Executive Changpeng “CZ” Zhao concerning the cryptocurrency’s exchange issues surrounding dogecoin withdrawal.
Elon Musk had embraced dogecoin, a meme-based coin, earlier this year and consistently tweet about the coin to his over 52 million followers at the time.
This bolstered dogecoin’s value to $0.7 a coin and pushed its market capitalisation to the top ten most valuable cryptocurrencies. The coin has now added a very impressive 6000% to its value compared to this time last year.
In early November 2021, Binance – which holds the spot as the world’s biggest cryptocurrency exchange according to volume – temporarily held off on any dogecoin withdrawals after an upgrade which led to Binance users claiming that dogecoin had been mistakenly credited to their accounts.
Elon Musk took to Twitter yet again to address CZ Zhao about the dogecoin situation, saying in his tweet that the situation “sounds shady”. Elon Musk posted this tweet in reply to a Coindesk report about Financial Times where CZ said that he’s looking to improve regulators’ views on Binance.
Musk went on to add that the doge holders who use the exchange should be secured from any errors that were not their fault.
After the upgrade glitch, Binance said all the dogecoin sent in error must be returned by the users, or else they will be unable to withdraw or use the funds on their balances. Forbes however reports that users have claimed they do not have the said dogecoin in their Binance accounts.
CZ replied Elon Musk, saying there is a certainty that the issue is with the latest doge wallet, and they have been communication with the developers. CZ went ahead to apologise for any inconveniences caused.
Elon Musk’s tweet prompted the Binance Twitter account to post a thread that explained the situation and the issue with dogecoin withdrawals. Binance has since updated a blog post, stating that it expects dogecoin withdrawals to be temporarily halted for about two weeks.
Fintech CEO: So Much Has Changed Since Kabosu was a Puppy
This week, Kabosu, the dog behind the Dogecoin, celebrated her sixteenth birthday. It’s been eleven years since her now-famous photoshoot, and, in that time, she has watched cryptocurrency transform into an industry all its own. Kabosu has inspired a number of digital assets, worth billions of dollars, over the years. She is among the world’s most notable canines.
“Kabosu, I think, in many people’s minds, marks the early days of cryptocurrency. We, at Modulus, cataloged thousands of digital currencies four or five years ago. I remember reviewing the notables for the top couple hundred cryptocurrencies. Dogecoin. Notables: Dog meme. So much has changed for Dogecoin since then, perhaps, most notably, the influence of Mark Cuban. But, that’s not all. Kabosu’s landmark birthday really is a turning of the page for cryptocurrencies, too,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.
“Now, we’re at a point where cryptocurrency is completely mainstream. Even just in this past year, cryptocurrencies have grown leaps and bounds. A country has recognized Bitcoin as legal tender. Corporations are hiring executives to manage a digital assets strategy. Big corporations. Investment banks are opening up cryptocurrencies as an investment option for select clients. Cryptocurrencies are easier to buy than ever. And a larger segment of the population is buying in than ever before. We’ve come a long way since ‘dog meme,’” said Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.
“The passing of the years for Kabosu has made her an international icon. From photo shoot to meme to the basis of billions of dollars’ worth of investments. And, her life parallels the same growth in an industry that is still banging on the door, exploding into the mainstream, and fundamentally changing the way the world thinks about assets. Cryptocurrencies and other digital assets, like CBDCs, are going to be here for the long haul. Finance is changing. And Kabosu will always be a part of that story,” said Gardner.
Meme Coin War: Shiba Inu Overtakes Dogecoin As Market Value Hits $42.7 Billion
One of the most popular meme coins, Shiba Inu (SHIB) has overtaken Dogecoin (DOGE) to hit a $42.7 billion market capitalisation, taking the 8th spot on the list of top digital assets by market capitalization.
However, its rival, Dogecoin is currently in the 10th spot with a total market capitalisation of $39.8 billion.
In the last seven days, Shiba Inu tagged “dogecoin killer” has surged by over 170 percent amid wild speculation of it being listed on Robinhood a popular U.S. trading app.
However, an intense dog fight between the two most popular meme coins, Shiba Inu and Dogecoin has seen traders rotating profits within the two meme coins. Some traders are profiting from the renewed interest in the two by taking spread trades.
On Wednesday, Shiba surged to $0.00008700 or 64.80 percent from $0.00004798 it opened before dropping to $0.00004689 to close the day’s trade at $0.00007907. The same day Dogecoin opened trade at $0.25585 surged to $0.26362 to close at $0.23790.
The price action observed in the past several hours is perhaps reflective of the rotation of money out of SHIB and into Doge the rival meme coin, and vice versa. Doge is still down by over 60% from its all-time high of $0.74 in May.
“It’s hard to deny that money could be moving to DOGE,” pseudonymous trader and self-proclaimed JPEG collector Kano The Giga Chad said while revealing his position to CoinDesk.
“Being short SHIB and long DOGE feels nice, I took the position about two hours,” the trader said.
It was revealed that retail investors account for almost the entire volume in meme coins. A surge in trading activities of meme coins is observed to represent excess greed as often seen at market tops.
Dogecoin has surged to $0.33807, however, at press time the meme coin is trading at $0.30619. Shiba Inu is currently trading at $0.00007298 after dropping low to $0.00005648.
Dogecoin co-creator Billy Markus in a tweet warned that the crypto market is “all about risk.”
“There are no promises in crypto, except from scammers,” said Markus. “The people telling the truth will tell you that it’s just all about risk. Your profits only come from other people taking their own risk. If you lose money, you paid for someone else’s risk. Ultimately, that is your choice.”
However, some do think there are legitimate reasons for investors to buy both the dogecoin and Shiba Inu cryptocurrencies. Dogecoin, a fork of bitcoin that dates back to 2014, is currently less sophisticated in its smart contract capabilities than Shiba Inu—launched just this year.
“Bitcoin is designed to be scarce whereas SHIB is intentionally made in a way that is abundant in nature,” Nirmal Ranga, chief revenue officer at bitcoin and crypto platform ZebPay, said in emailed comments.
“The Shiba Inu token system supports innovative and artistic projects like non-fungible token (NFT) art incubators. The development of its own decentralized exchange called the ShibaSwap is also in the pipeline, all factors which have been driving the tokens value and interest among traders.”
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