Is Baby Dogecoin Cryptocurrency Worth the Hype?

By October 14, 2021No Comments
Is baby dogecoin cryptocurrency worth the hype_WazirX

Baby Dogecoin is a ‘new baby’ on the cryptocurrency bourse birthed from the wedlock of the famous Dogecoin and its fans and members of the community. Hilarious? Probably. But that’s how we would like to summarize the birth of a coin from a coin that was born off a meme! 

Dogecoin, which started its cryptocurrency journey back in 2013, had risen up the popularity charts early this year. The value of Dogecoin was multiplied several folds after Tesla’s CEO endorsed the meme coin on Twitter. The value of Dogecoin stands at $0.26 as of 13th August 2021. Cryptocurrency markets change quickly.  And soon Dogecoin’s ascent was a piece of old news. 

Baby Doge, represented by the Shiba Inu Dog staring endearingly at you, started getting loads of hype, particularly, after Musk tweeted a random tweet containing the lyrics of the song ‘Baby Shark’ substituted with the chant of ‘baby doge, doo, doo…” Its objective hilariously reads: 

“The objective is to impress my father by demonstrating my new increased transaction speed and cuteness.”

The coin is just two months old and gaining considerable traction from the crypto community. You, as investors, must be highly inquisitive about the coin and wondering how to invest in Baby Dogecoin. Here we present to you Baby Doge’s Biography to date to help you rationally decide your course to buy baby Dogecoin.

The 1-2-3-4 Tokenomics of Baby Dogecoin

  • Baby Dogecoin was developed by the fans and members of the Dogecoin online community on June 1, 2021, as a yield farming token, based on an integrated smart staking system, with increased transaction speed. This simply means the more you transact in and hold Baby Doge, the more returns get added to your wallet. Besides the name, it has no more similarity to its father, Dogecoin. It is more similar to Shiba Inu, each having a limited token supply and staking benefits, with the coin adding no core utility to any specific use case. 
  • After the launch, Baby Dogecoin’s prices went up pretty quickly after it found fans and new buyers quickly. However, the earliest price wasn’t recorded until June 9 when it cost $0.000000000175. 
  •  In the next 2 weeks, its price rose by over 1000%. The next day, it had lost 50% of its value!
  • In 3 weeks, its market cap touched $200 million. 
  • And it crossed 160,000 holders in 4 weeks. 
  • The current Baby Dogecoin price stands at $0.000000001661 with a 24-hour trading volume of $12,005,300. With a  market cap of $45,763,836, it currently stands at the 2615th position as per Coinmarketcap.
  • Since its launch on June 1, 2021, BabyDoge has amassed a community of 250,000 holders, 85,000 Telegram members, 85,000 Twitter followers, and 45,000 Instagram followers.

How does Baby Doge Work?

Baby Dogecoin has a total supply of 420 quadrillion tokens. The team has already undertaken manual burning of over 125 quadrillion tokens so far. Only the Dogecoin team has complete control over how much supply gets burned each time. The centralized decision-making is a risky proposition when it comes to investment, with a negligible track record to rely on.

Baby Doge incentivizes holding while charging a transaction fee when the crypto is traded. Every time a Baby Doge is sold, the seller pays a commission of 10%, of which:

  • 5% is redistributed to everyone who currently holds Baby Dogecoin.
  • The other 5% is split in half, one half remains as Baby Dogecoin, and the other half is traded for Binance Coin. This helps in maintaining the liquidity pool so that people can trade the two coins for each other. 

You lose 10% every time you sell your holdings and get rewarded with a portion of the transaction fee in case you hold on to your Baby Doge. Many coins such as Safemoon and Bonfire in the past have done exactly the same thing. Post an initial success, these coins suffered huge price drops. 

Baby Doge’s Six-stage Roadmap and Ultimate Mission 

Baby Doge has a well-laid out six-phase roadmap unique in several aspects. The first few phases, thankfully, are like any other cryptocurrency’s roadmap with set goals such as reaching a target of 25,000 holders and ensuring the completion of a website redesign. Starting a marketplace for NFTs, getting listed on major cryptocurrency exchanges, launching its decentralized crypto swap, Baby Doge Swap. Thankfully, the first few phases and creating a wallet for the holders to keep track of their rewards are some of the serious goals listed in its whitepaper. 

The final phase gets ludicrously ambitious and, at places, absurd: 

  • ‘Add way more memes.’ 
  • The community aims to carve a Baby Doge into a mountain once its market cap reaches the $100 billion mark. 
  • Give a Tesla as a giveaway when the coin reaches a $250 million market cap. 
  • And next, the creation of a Baby Doge religion at a market cap of $500 billion!

No, you are not going to see a baby Doge face in any mountain or chant hymns in the name of Baby Doge ever. Only a few currencies have been ever successful in reaching the $100 billion market cap. Bitcoin is the only currency that has passed $500 billion in terms of market capitalization. 

The roadmap plus the empty idea behind the launch of Baby Doge often makes analysts call it a pyramid fraud disguised as a technology investment. 

However, the silver lining lies in the charity initiatives taken by the coin’s community. One of its goals includes rescuing dogs in need. The whitepaper states that the team has constituted a charity wallet with 2.2% of Baby Doge’s total supply going into it. The 5% proceeds from the transaction fees are redistributed among the baby doge holders, as such, the charity wallet receives 2.2% of this commission. 

The funds from the charity wallet are used for supporting Baby Doge’s charity partner. On June 24, the cryptocurrency’s Twitter account announced that $75,000 was donated to an NGO PawsWithCause, an organization that uses community paint days to bring greater attention to the animals in the local shelters.     

Should you buy Baby Doge? 

The hype around the meme coin might lure you into investing in the coin. But there are many repercussions of investing in a coin with so many red flags. First of all, the coin isn’t listed on any of the major crypto exchanges, given its low trading volume and the status of a meme coin. 

As a long-term. This organization investment hardly holds any value. There is no responsible roadmap or robust goal plan for such meme coins. Most of the time, the coins rely on marketing to push up the price and gain popularity. In that case, it is only the team members of the earliest investors that gain from the coin. Those arriving late bear the losses. People might move over to the next coin with a queer name or logic behind it and soon forget about it. While it may be possible that the coin reaches an all-time high and shatters all records.  

For a cryptocurrency to attain wide scale adoption, it is necessary that it adds value and has a practical end-use. This is apparent in the coins with viable use cases gaining the maximum traction and market share. Coins such as Baby Doge that rely on tweets and their fanbase to grow ultimately lose steam. It doesn’t matter how small the market cap of a cryptocurrency is. For instance, Chia is a small cryptocurrency, but it has an appealing use case in providing proof of space and time to utilize cloud storage solutions. The growth prospects of such currencies are higher due to their relevance.   

The crypto community is divided when it comes to Baby Doge as a viable investment option. Some consider its staking capabilities worth investing in, while others consider it a Ponzi scheme to get rich. We wonder whether Father Doge would be proud of his son’s achievement or not. But no one can foresee Baby Doge’s future, added to the unpredictable nature of the cryptocurrency market. 

Baby Dogecoin can be accessed via the PancakeSwap platform, the only name worth mentioning where the users contribute to trade crypto. You need to connect a crypto wallet first and then trade another crypto, such as Binance Coin for Baby Doge.

Further Reading:

Is Shiba Inu a DogeCoin Killer or a Shit Coin?

What is Dogecoin? How to buy Dogecoin in India?

What is the reason behind the popularity of Dogecoin?

Dogecoin Price Prediction 2021 : How much is it worth in 2021?

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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