Dogecoin, the digital currency inspired by the popular
Doge meme, now has a market capitalization above $2
Its founder is worried the coin’s recent rise indicates
wider frothiness in the cryptocurrency market.
Dogecoin, the alternative cryptocurrency inspired by a popular 2013 meme, has surged
over the weekend and now has a market capitalization over $2
It soared above the $1 billion milestone on Christmas Day and has
continued to hit new milestones. As for its price, the coin was
trading at $0.018 on Sunday. Still, that’s up from $0.00000021 a
coin at the beginning of December.
Founder Jackson Palmer, who created the digital currency as a
joke, said new found interest in Dogecoin is a concerning
indicator of wide-spread frothiness in the cryptocurrency market.
“I have a lot of faith in the Dogecoin Core development team to
keep the software stable and secure, but I think it says a lot
about the state of the cryptocurrency space in general that a
currency with a dog on it which hasn’t released a software update
in over 2 years has a $1B+ market cap,” Palmer told
cryptocurrency watcher CoinDesk.
Wall Street has been raising red-flags about a bubble in the
market. In fact, UBS chief economist Paul Donovan said
cryptocurrencies are in “the bubble to end all bubbles.”
“A twenty-fold increase in bitcoin prices in just two years, and
an absence of any fundamental economic backing, cryptocurrency
prices are almost certainly a bubble,” Donovan wrote in an
As for Dogecoin, Palmer, a
group product manager at Adobe, and Billy Markus, a software
engineer at IBM, created it “without
much real thought,” according to reporting by
As Palmer told Motherboard’s
McGuire, “one night after work, I sat down with a beer, I had too
much time on my hands, and I bought Dogecoin.com.”
Markus stepped in to help make Dogecoin an actual
The name of the coin is an homage to the popular internet meme
known as Doge, which became popular in 2013 and features the face
of a dog with comic sans texts in the background.
This is the meme: