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Subverting finance: from bitcoin, dogecoin to SHIB, a real absurd drama of 1700 times in 3 months.

By / San Sheng

Produced by / Node Finance

Since some time in January 2009, Satoshi Nakamoto typed the last line of code for bitcoin, marking the beginning of a legendary, absurd, greedy, passionate, and dreamy journey in human history. Today, more than a decade has passed, Satoshi Nakamoto remains a mystery, but bitcoin has soared past the $0.06 million mark.

Entering 2021, the main character of digital currency is undoubtedly dogecoin, which has increased by more than 100 times. In the process of dogecoin's dominance, Tesla CEO Elon Musk deserves much credit.

On May 10th, Musk announced that SpaceX will launch satellites funded by dogecoin. Moreover, in his Twitter post, Musk once again exclaimed 'To the mooooonnn!!', sparing no effort to promote dogecoin.

The day before, in a recently concluded variety show, this tech industry leader and global internet sensation referred to himself as the 'godfather of dogecoin', continuing to vigorously promote dogecoin. However, the results were quite surprising.

What qualities allow dogecoin, with its cute logo, to earn Elon Musk's favor? After the sharp decline, will dogecoin collapse? The 'zoo' concept it leads, like shiba inu coin (commonly known as shiba inu coin or dog poop coin), has repeatedly doubled in recent days. How much real value does it hold?

/ 01 /

Did Musk's promotion fail?

On May 9th, Beijing time, Musk co-hosted the long-established American entertainment variety show Saturday Night Live.

Prior to this, dogecoin had surged by over 100 times in 2021, and shiba inu coin skyrocketed fivefold on May 8th and 9th, entering the trending searches. On May 10th, shiba inu landed on Binance, doubling in price once again.

The frenzy of digital currency has made countless investors start to doubt their lives.

According to Node Finance, many investors in the currency circle are waiting for Musk's performance on Saturday night, hoping he will lead dogecoin to continue to soar and break the $1 barrier. However, Musk's promotion this time caused dogecoin to plummet.

On the day of the show, dogecoin once plummeted to $0.416 per coin, a drop of more than 40%. The reason for this situation is primarily related to Musk's performance on the show.

In the show, Musk first invited his mother to the scene and gave dogecoin as a Mother's Day gift. Later, in the show's news satire segment 'Weekend Update,' Musk declared himself the 'Doge father' and acted as an expert explaining dogecoin.

The host first asked: What exactly is cryptocurrency? Musk replied: Cryptocurrency is a type of digital currency that is not controlled by central banks, but achieves decentralization through blockchain technology. This 'Doge father' also emphasized.

He was first asked, 'What is cryptocurrency?' Musk replied, 'Cryptocurrency is a type of digital currency that achieves decentralization through blockchain technology.' He also specifically mentioned, 'Recently, the prices of digital currencies have skyrocketed, such as bitcoin, ethereum, especially dogecoin.'

The host then repeatedly asked, 'What exactly is dogecoin?' Musk began to answer that dogecoin originated from the wildly popular internet meme, created in 2013, and has since grown. He believes, 'Dogecoin is the currency of the future, an unstoppable financial instrument that will take over the world.'

After several questions, the host made an 'aha' gesture and asked, 'So, is dogecoin a hustle?'

In response, Musk shrugged helplessly and replied, "Okay, it's a hustle."

Finance Node noticed that after the show aired, there were voices in the media suggesting that Musk called dogecoin a scam, which had a certain catalytic effect on the sharp decline of dogecoin.Some netizens captured Musk's "scam call," causing dogecoin to plummet by nearly 25% instantly.

Although it is obviously just a joke by Musk, the sentiment surrounding dogecoin has become quite fragile. Even before Musk appeared on the show, Gray Fund founder and cryptocurrency big shot Barry Silbert had already tweeted to short dogecoin. He said, "Okay, DOGE guys, very interesting. Welcome to crypto! But now it's time to convert your dogecoin to bitcoin."

Other market analysts pointed out that Musk's failed "product placement" may be a turning point for dogecoin from rise to fall.

Subsequently, despite Musk's announcement that SpaceX would launch a satellite funded by dogecoin and send dogecoin to the moon, it failed to boost the price of dogecoin. As of 10 a.m. on May 11th, the price of dogecoin was $0.464 per coin, with a drop of about 37% from its peak.

With Musk's influence on dogecoin diminishing, can dogecoin still reach $1?

/ 02 /

Challenging bitcoin, dogecoin relies on its popularity.

According to Node Finance, many cryptocurrency investors firmly believe that dogecoin will soar to $1 in the future. Musk is one of them, and his favoritism towards dogecoin is now well known.

Especially after entering 2021, Musk has been particularly active, frequently promoting on Twitter, for example:

"We don't need to be billionaires to have dogecoin";

"Dogecoin is the people's virtual currency";

"I'm not drunk, not emotionally down, I only have dogecoin in my heart"……

In addition to Musk, dogecoin is also supported by many celebrities such as Mark Cuban, owner of the Dallas Mavericks, singer Snoop Dogg, Gene Simmons, etc. Under this circumstance, the price of dogecoin continues to rise, reaching $0.74/coin at one point, with a market cap exceeding $90 billion, and an annual increase of 130 times, overwhelming mainstream cryptocurrencies such as bitcoin and ethereum.

Faced with the skyrocketing dogecoin, many people believe that this is a massive bubble or even a scam. However, as a currency that has become increasingly active since its birth in 2013, Node Finance believes that dogecoin's ability to attract such attention is unique.

As is well known, the birth of dogecoin originated from a joke.

In 2013, bitcoin had its first moment of glory, with the price soaring from a few dollars to tens of dollars in a very short period of time, attracting attention. Dogecoin founders Billy Marcus and Jackson Palmer, in order to satirize the speculation around bitcoin at the time, developed a digital currency using the popular Shiba Inu meme.

Dogecoin's code is basically a replica of bitcoin and litecoin, and it only took three hours, with a significant amount of time spent on adjusting the font and images. From a technical perspective, it can be said to be a complete copycat currency.

However, despite being originally intended as a parody of bitcoin, this parody currency has now become a highly anticipated star variety. The irony, absurdity, and subversion of traditional finance in the world of digital currency are concentrated in dogecoin.

Dogecoin's popularity began on the social media platform Reddit. Due to its large quantity, accessibility, down-to-earth nature, and inherent entertainment and playful elements, it quickly gained a lot of attention. In less than two weeks after its launch, dogecoin set up dedicated blogs and forums.

With the rise of dogecoin, its applications became diverse. It could be used as tips for rewarding, to fund charity events such as helping NASCAR driver Josh Wise and supporting the Jamaican bobsled team for the 2014 Olympics; raising funds to improve clean water supply in Kenya, and more.

With the development of the dogecoin community, more and more people began to focus on its investment value. Subsequently, the two founders of dogecoin successively announced their departure, and without the founding team, dogecoin's decentralized nature became more prominent. The more this was the case, the more netizens liked to upvote and tip dogecoin to each other, making the dogecoin community one of the most active cryptocurrency communities and seen as one of the best examples of 'community governance' in the world of cryptocurrencies.

In April 2019, Musk officially embarked on the 'dogecoin influencer tour'. He stated on Twitter, 'Dogecoin might be my favorite cryptocurrency'; 'Dogecoin's initial release was meant to mock cryptocurrencies, but fate is always so ironic. The most ironic thing is that dogecoin will become the currency of Earth in the future.'

Afterwards, the price of dogecoin kept rising, and finally exploded in 2021, directly challenging bitcoin in popularity.According to public data, the number of dogecoin holding addresses is second only to bitcoin, ranking second in the world.

In addition to active community engagement, dogecoin is increasingly recognized as a form of payment.

On April 20, 2021, online retailer Newegg announced that the company now accepts dogecoin as an official payment method. Apart from Newegg, the NBA team Dallas Mavericks has been accepting dogecoin payments since March 4, 2021. According to dogecoins.com, there are already 20 companies willing to accept dogecoin payments.

Compared to bitcoin's investment and storage functions, dogecoin has more advantages in the fields of tipping and consumption, which stems from its unique issuance mechanism since its inception.

Dogecoin has a total circulation of up to 100 billion coins, with an additional 5% issued each year to compensate for lost coins, maintain a certain inflation rate, and encourage users to use dogecoin. This design means that even if the market cap of dogecoin is very high in the future, its unit price will still remain relatively low, which will not cause too much psychological burden on holders.

Therefore, dogecoin enthusiasts are more enthusiastic about using it as a trading tool. As early as 2018, a research report pointed out that despite dogecoin being ranked outside the top 10 in terms of market cap, its active addresses were already third worldwide.

Not long ago, on the petition website Change.org, 0.15 million people collectively signed a petition calling on amazon to accept dogecoin payments. The petition stated that amazon's refusal to accept dogecoin as a payment method "is distancing many people without traditional bank accounts."

The reasons given by petitioners also include: Dogecoin is "fast, cheap, and stable," with lower transaction fees compared to other major cryptocurrencies, and has a large supply, as well as an actively growing community.

As the largest e-commerce platform, if one day in the future, Amazon truly accepts Dogecoin as a payment currency, it will be a more disruptive scene. The development of digital currency over the past decade has proven that anything is possible.

For Bitcoin, which stands at the top, what it lacks is the grassroots appeal of Dogecoin, which is also one of the latter's possible challenges to the former's confidence.

/ 03 /

"Zoo" concept coins revolt, cherish while they last.

NodeFinance believes that the surge in digital currencies is closely related to the massive stimulus from the US government after the pandemic. With the frequent adjustments to the Federal Reserve's policies, investing in Dogecoin still carries significant risks. Although the coin price has retraced, caution is still advised before entering.

According to related data, the top ten Dogecoin holding addresses currently account for 44.61% of all Dogecoin, with the top holder even nearing 30%. Once these "whales" with large chip holdings make any moves, it could have a significant impact on the coin price.

In fact, last Friday, Musk retweeted a video titled "Musk says Dogecoin may be the future of cryptocurrency," and in the caption for the video, he mentioned that cryptocurrency has a bright future but advised caution in investing. In the video, Musk stated that investing all life savings in cryptocurrency is not a wise decision.

Dogecoin founder Palmer also pointed out, "I feel that the cryptocurrency field is increasingly feeling like a group of anarchists sitting around, hoping to get rich overnight, and putting forward some trendy business ideas of decentralization and liberalization, which often end in failure."

However, the eruption of 'zoo' currencies like SHIB and PIG is pushing things further towards a 'fanatical' direction.

In recent days, just as Dogecoin started to decline, another new currency known as the 'dogecoin killer' has been sought after. Its price has been continuously doubling. This is the shib mentioned earlier, full name SHIBA COIN, popularly known as Shiba Inu coin or Dog S*** coin.

From the name alone, shib has a more absurd and unrestrained temperament than dogecoin, with more astonishing price increases and a more fervent market. When it was listed on major exchanges like Huobi, OKEx, and even Binance, the soaring trading volume nearly crashed the trading software.

According to non-small number statistics, as of 10 a.m. on May 11th, shib has multiplied by 1737 times in the past three months, by 567 times in the past 30 days, by 20 times in the past week, and by 150% in the past 24 hours. Since its inception in July last year, shib has skyrocketed by 0.35 million times.

A blogger shared in real-time online how the shib bought for 3000 yuan on May 8th gradually turned into 5000, 7500, 9600, and even 0.1 million, 0.11 million...

In the world of cryptocurrencies, one day feels like a year. In this market, stories of getting rich quickly spread across social networks.

"Classic cryptocurrency circles" still rally under the flags of big brothers like Bitcoin and Ethereum with stable positions, while newcomers sweep through with one hundredfold increases, exuding an absurd yet real wealth vibe.

In addition to shiba inu coins, the concept coins related to animals are diverse, such as pigcoin, monkeycoin, catcoin, space dog, yellow chicken, lioncoin... dazzling.

At the recent Berkshire Hathaway shareholders meeting, investment guru Charlie Munger once said that the entire cryptocurrency circle is a worthless zero-sum game, especially energy-consuming, entirely an invented financial tool, which is disgusting.

However, digital currencies represented by bitcoin are stepping onto the stage of human history as disruptors of finance, from less than $1 in the beginning to breaking through $0.06 million, gradually being accepted by mainstream financial institutions. Dogecoin, on the other hand, started as a mockery of bitcoin, relying on its excellent community autonomy to build its foundation in the world of digital currency.

The Chief Content Officer of CoinDesk expressed that the popularity of dogecoin precisely indicates that social media is disrupting traditional monetary systems.

According to Node Finance, whether bitcoin or dogecoin, they have already accumulated their relatively solid consensus foundation over time. Human beliefs, morals, laws, rules, and so on, their ultimate goal is to establish a lasting and solid consensus, laying the foundation for life order.

However, the rise of shiba inu coins as the 'dogecoin killer', and a variety of concept coins related to animals are currently in a purely speculative stage, with the vast majority eventually going to zero.

There are inevitably bubbles in finance, investment always involves risks, so cherish and proceed with caution.

Node Finance Statement: The content of the article is for reference only. The information in the article or the opinions expressed do not constitute any investment advice. Node Finance is not responsible for any actions taken as a result of using this article.

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