Yesterday, Twitterverse raised a question that caught the attention of Tesla CEO, crypto investor and Coinbase user Elon Musk: “Do you think Coinbase should activate Dogecoin on their platform? ” Musk replied: “Yes!”
Musk is no longer a stranger in the crypto world. In early February, US Securities and Exchange Commission filings revealed Tesla bought $ 1.5 billion in Bitcoin. Before that, Elon routinely pushed DOGE prices to the point where a single Dogecoin meme tweet was nearly 40% profitable in just half an hour.
What is Dogecoin?
Dogecoin was created by software programmers Billy Markus and Jackson Palmer in 2013. Two programmers created this coin in response to all Bitcoin advertisements. Their thoughts: if someone can create a coin, why can’t they?
The coin’s avatar is the chubby Shiba Inu dog, whose face stands out like a meme accompanied by cute English phrases, like “A lot” and “Very impressive”. This coin grew shortly after launch and was revered.
After the Bitcoin bull run in winter, celebrities like Musk pushed Dogecoin, which at its peak last month had a market cap of $ 17 billion.
Musk is not alone – celebrities are optimistic about DOGE. Earlier this year, rapper Lil Yachty announced he was investing one third of his savings into DOGE. The following month, he joined KISS bassist Gene Simmons and hip hop legend Snoop Dogg.
Subsequent analysis of Twitter metrics even revealed that Dogecoin is 1 point more popular than Bitcoin. In February, it accounted for 10.4% of all crypto mentions on the platform, while Bitcoin lagged behind with 10.1%.
All attention has resulted in some high price performance charts. On Jan. 27, DOGE was priced at $ 0.0078. By Feb. 8, that number nearly tripled to $ 0.074. A sharp correction ensued that pushed the price down to $ 0.047 on Feb. 23 – still 6 times more than where it was originally positioned.
Great, so why not on Coinbase?
Coinbase has always been slow to adapt to new coins. While Coinbase’s Asian rival Binance focuses on adding as many coins as possible at the cost of operating in the US, Coinbase has listed fewer coins to appease regulators at its home turf and doubling the ability to offer only a handful of currencies.
Executive editor Jeff John Roberts writes in his book Kings of Crypto that Coinbase considered adding more coins, including DOGE, after being overtaken by Binance as the most popular exchange in the world. gender in mid-2018, forcing Coinbase to revisit.
At this point, Coinbase is no longer a startup, they have a way of responding whenever they attempt to make changes. Noticing that there were no profits coming from memecoin, Coinbase executives quickly forgot about the plan to allow DOGE transactions on the platform.
Coinbase only started adding more coins after hiring tech entrepreneur Balaji Srinivasan in 2018 – but DOGE has never met their request.
The coin that started off as an elaborate joke about Bitcoin has now grown into the 15th largest cryptocurrency by market cap, with a dedicated team of developers behind it, and many new upgrades to the software.
Coinbase lost billions of dollars for not storing DOGE. But with its volatility, the exchange can defend its reputation as the white knight of the crypto space.