Elon Musk has anointed a successor to Dogecoin – and it’s called Baby Doge.
Billionaire Tesla CEO Shoutout to the month-old spinoff of canine-themed cryptocurrency Thursday morning on Twitter, its price more than doubled, according to CoinGecko data.
The musk effect stopped shortly after. By mid-Friday, Baby Doge had fallen about 22 percent from its peak. But Baby Doge’s trading volume has been consistently high since Musk’s post, indicating the potential for continued interest among crypto traders.
So what, apart from the fact that its name is piggybacked on Dogecoin, makes Baby Doge different?
Baby Doge is the brand new ‘son’ of Dogecoin
Baby Doge – whose creators are not affiliated with those who created Dogecoin as a joke in 2013 – features a mascot that looks like a puppy version of its “father”, the Shiba Inu dog who is the face of Dogecoin. It started trading in early June, after much of the original Dogecoin craze had gone bad.
“Baby Doge is proud to run alongside her father and provide transparency and fairness to the community,” a Website As for the coin, which also says that Baby Doge has a market capitalization of $200 million.
In the first month after Baby Doge became available, more than 200,000 people bought it, a . According to Twitter account Run by the creators of Coins. According to CoinGecko, people who bought Baby Doge on the first day have achieved returns of around 500 percent.
But the new crypto coin has also attracted its shares of skeptics, with one on Thursday Branding it the “Pyramid Scheme” The way in which its transactions distribute fees to early investors shortchanges newcomers.
Logan Ross wrote on Benzinga, “The only way to make money on a token like this is to come early – usually before Elon Musk’s tweet.”
Baby Doge’s supply is limited — unlike Dogecoin
While there is no limit to how many Dogecoins can theoretically be created through crypto mining, the creators of Baby Doge say that their coin is “hyper-deflationary” – which, oddly enough, they say is the coin. The supply is shrinking instead of expanding.
The coin’s creators even said on Thursday that they would carry out a “coin burn” of 3 quadrillion Baby Doge coins, which would increase the price of Baby Doge by reducing supply. Nevertheless, a Baby Doge coin is currently only worth $0.00000001623.
Where can you buy Baby Dogecoin? Not on mainstream crypto trading sites
While mainstream crypto trading sites such as Coinbase and Weibull do offer Dogecoin, they do not allow their users by Baby Doge.
However, interested crypto traders can buy Baby Doge through crypto exchange Binance, which was banned from operating in the UK this week.
Baby Doge isn’t the only Dogecoin spinoff
Another cryptocurrency has also claimed to be the successor of Dogecoin.
The Shiba Inu coin, which also features a dog mascot and pays tribute to Dogecoin, has been bought by nearly 550,000 people since its launch in August 2020. According to CoinGecko, it is currently the 26th largest coin by market capitalization.
The Shiba Inu coin is also subject to wild fluctuations based on Elon Musk’s tweets.
When Musk tweeted, “My Shiba Inu will be named Floki,” in June, the price of the Shiba Inu coin soared nearly 10 percent.
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