Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer. Initially developed as a satire of the speculative nature of cryptocurrencies, Dogecoin is recognized as the first "meme coin" and "dog coin." Despite its humorous origins, it has been considered a legitimate investment by some. The cryptocurrency features Kabosu, the Shiba Inu from the "Doge" meme, as its logo and namesake.

Symbol	Ð
Code	DOGE
Development
Original author(s)	Billy Markus, Jackson Palmer
Initial release	December 6, 2013; 11 years ago
Development status	Active
Operating system	Microsoft Windows Linux iOS Android
Developer(s)	Billy Markus ("Shibetoshi Nakamoto"), Michi Lumin, Ross Nicoll
Source model	FOSS
License	MIT License
Website	dogecoin.com

Dogecoin was introduced on December 6, 2013, and quickly gained popularity, developing a dedicated online community. On May 5, 2021, its market capitalization peaked at over US$85 billion. As of 2021, it served as the sleeve sponsor for Watford Football Club.

Dogecoin.com describes the currency as the "fun and friendly Internet currency," emphasizing its lighthearted origins. Markus and Palmer launched the project as a critique of Bitcoin and other cryptocurrencies with ambitious claims. The cryptocurrency quickly gained traction, particularly on social media platforms such as Reddit. Within two weeks of its launch, Dogecoin had an active online presence, including a dedicated blog and forum. It also briefly reached a market valuation of $8 million, becoming the seventh-largest digital currency at the time.

History

Dogecoin was created as a joke by IBM software engineer Billy Markus and Adobe software engineer Jackson Palmer. They aimed to develop a peer-to-peer digital currency that was more accessible than Bitcoin while distancing it from the controversies surrounding other cryptocurrencies. Officially launched on December 6, 2013, Dogecoin quickly gained popularity, with over one million visitors to Dogecoin.com within its first month.

Palmer, working in Adobe’s marketing department in Sydney, Australia, played a key role in bringing the idea to life. He registered Dogecoin.com and designed an initial splash screen featuring the coin’s logo and Comic Sans text. Markus, inspired by the website, contacted Palmer and began working on Dogecoin’s development. The cryptocurrency's protocol was based on Luckycoin and Litecoin, utilizing a scrypt-based proof-of-work algorithm. This made mining Dogecoin incompatible with Bitcoin’s SHA-256 hardware, requiring more specialized mining devices.

Dogecoin saw rapid early growth, jumping nearly 300% in value within 72 hours on December 19, 2013, before experiencing its first major crash three days later, losing 80% of its value due to large mining pools exploiting its relatively low mining difficulty. Shortly afterward, on December 25, 2013, Dogecoin suffered its first major hack when millions of coins were stolen from the online wallet platform Dogewallet. In response, the Dogecoin community launched the "SaveDogemas" initiative, successfully raising funds to reimburse affected users.

By January 2014, Dogecoin’s trading volume briefly surpassed that of all other cryptocurrencies combined, though its market capitalization remained lower than Bitcoin’s. Initially, Dogecoin mining rewards were randomized, but in March 2014, they were changed to a fixed block reward. In 2015, co-founder Jackson Palmer left the cryptocurrency industry, criticizing it as exploitative and designed to benefit only its top players. His co-founder, Billy Markus, largely agreed with Palmer’s assessment.

During the 2017–2018 cryptocurrency boom, Dogecoin reached a high of $0.017 on January 7, 2018, bringing its market capitalization to nearly $2 billion. In July 2020, a viral TikTok trend temporarily boosted Dogecoin’s price as users attempted to push its value to $1.

On May 9, 2021, SpaceX announced the DOGE-1 mission, a rideshare payload to the Moon fully funded by Dogecoin, marking the first space mission financed through cryptocurrency. While initially planned as part of Intuitive Machines’ IM-1 mission in early 2022, DOGE-1 faced delays and was rescheduled for a later launch.

On August 14, 2021, the Dogecoin Foundation, originally established in 2014, was officially re-established to support the Dogecoin ecosystem and promote its blockchain’s future. The revived foundation included notable advisors such as Ethereum co-founder Vitalik Buterin and Jared Birchall, a representative of Elon Musk.

2021 Boom

In January 2021, Dogecoin experienced a significant surge, increasing by over 800% within 24 hours to reach a value of $0.07. This rise was largely driven by interest from Reddit users, with additional influence from Elon Musk and the GameStop short squeeze. The upward momentum continued in February 2021, when Dogecoin reached a new high of $0.08 following endorsements from Musk, Snoop Dogg, and Gene Simmons on Twitter.

In March 2021, Mark Cuban, owner of the Dallas Mavericks, announced that the NBA team would begin accepting Dogecoin as payment for tickets and merchandise. Within two days, Cuban reported that the franchise had become the leading Dogecoin merchant, having processed 20,000 transactions.

April 2021 saw another surge in Dogecoin’s value, partially influenced by the direct listing of the cryptocurrency exchange Coinbase on April 14, despite the platform not supporting Dogecoin trading at the time. Dogecoin first surpassed the $0.10 mark on April 14, before reaching an all-time high of $0.45 on April 16, marking a 400% increase within a week. Trading volume exceeded $70 billion in the preceding 24 hours. By this time, Dogecoin's market capitalization approached $50 billion, making it the fifth most valuable cryptocurrency, with its price having risen over 7,000% since the beginning of the year. The spike in interest led to an outage of Robinhood’s cryptocurrency trading system on April 15 due to "unprecedented demand," prompting concerns among experts about a potential speculative bubble.

On May 4, 2021, Dogecoin's value surpassed the $0.50 milestone for the first time.

In April 2023, Dogecoin experienced another price increase after Elon Musk temporarily changed the Twitter app's logo to the Doge meme. In June 2023, Musk faced allegations of insider trading from investors, who cited this and other market-influencing actions.

On August 29, 2024, a U.S. federal court dismissed a lawsuit against Elon Musk and Tesla, which had accused them of defrauding investors by promoting Dogecoin and engaging in insider trading, allegedly resulting in billions of dollars in investor losses.

Use and Exchanges

Dogecoin is an altcoin with a large user base, traded against fiat currencies and other cryptocurrencies on various cryptocurrency exchanges and retail investment platforms.

Physical and tangible items are occasionally exchanged for Dogecoin within online communities such as Reddit and Twitter, where cryptocurrency-related discussions are common. Cases of individuals using their employers' or universities' computers for Dogecoin mining have been reported, including incidents involving a Harvard community member and a student at London's Imperial College.

Dogecoin has been utilized in various industries, including property sales, the adult entertainment sector, and online gambling.

Online Tipping

One of Dogecoin’s notable applications is in Internet-based tipping systems, where social media users reward others for sharing engaging or valuable content.

Dogetipbot

Dogetipbot was a cryptocurrency transaction service that enabled Dogecoin transfers on platforms like Reddit and Twitch via comment commands. However, the service was discontinued in May 2017 after its creator declared bankruptcy, leading to the loss of Dogecoins stored in the system.

Smart Contracts

Dogecoin's blockchain does not natively support smart contracts. However, it can be linked to the Ethereum blockchain to enable access to decentralized finance (DeFi) applications.

Currency Supply

Initially, Dogecoin was designed with a supply limit of 100 billion coins, significantly higher than other major cryptocurrencies at the time. By mid-2015, all 100 billion Dogecoins had been mined, and an additional 5 billion coins were introduced annually. In February 2014, co-founder Jackson Palmer announced that no supply cap would be enforced to ensure a steady inflation rate over time.

Mining Parameters

Dogecoin's technical framework differs from its predecessors. Initially forked from Litecoin, it was later refactored to Bitcoin. Dogecoin features a one-minute target block time, in contrast to Litecoin’s 2.5 minutes and Bitcoin’s 10 minutes.

Fundraising

2014 Winter Olympics

The Dogecoin community has been active in fundraising efforts for charitable and high-profile causes. On January 19, 2014, the community launched a fundraiser to support the Jamaican Bobsled Team’s participation in the Sochi Winter Olympics, raising $50,000. By the second day, $36,000 worth of Dogecoin had been donated, and Dogecoin's exchange rate with Bitcoin increased by 50%. Additionally, funds were raised for another Sochi athlete, Shiva Keshavan.

Doge4Water

In 2014, The Dogecoin Foundation, led by Eric Nakagawa, organized a campaign to raise funds for a well in Kenya's Tana River Basin for World Water Day. The initiative, in collaboration with Charity: Water, received contributions from over 4,000 donors, including a single anonymous donation of 14 million Dogecoins (valued at approximately $11,000 at the time). In total, more than $30,000 was raised.

NASCAR Sponsorship

In March 2014, the Dogecoin community successfully raised 67.8 million Dogecoins (approximately $55,000) to sponsor NASCAR driver Josh Wise in the Sprint Cup Series. The No. 98 car, nicknamed "Moonrocket," featured a Dogecoin/Reddit-themed paint scheme and competed at the Aaron’s 499 race in Talladega. Wise later secured a spot in the Sprint All-Star Race via an online fan vote, defeating Danica Patrick, largely due to Dogecoin Reddit community support. He finished fifteenth in the race.

Following the success, Eutechnyx added Wise’s Dogecoin car as a drivable option in the NASCAR '14 video game. In 2021, Dogecoin also co-sponsored the No. 99 NASCAR Xfinity Series car for B. J. McLeod Motorsports at the Alsco Uniforms 300 in Las Vegas, driven by Stefan Parsons.

Criticism

Dogecoin's origin as a joke and its status as the first "meme coin" have contributed to skepticism from financial experts and mainstream media. The cryptocurrency has been linked to scams and Ponzi scheme-like accusations, with critics arguing that early investors benefit at the expense of newer buyers due to Dogecoin’s uncapped supply. Unlike Bitcoin, which has a maximum supply of 21 million coins, Dogecoin has no upper limit, raising concerns about inflation.

Elon Musk and Dogecoin

Elon Musk has played a significant role in influencing Dogecoin’s market performance through his public statements on the social media platform X (formerly Twitter). His tweets have often led to notable fluctuations in Dogecoin’s price, prompting allegations of market manipulation. Dogecoin co-founder Jackson Palmer has criticized Musk, referring to him as a "self-absorbed grifter."

Musk's first tweet about Dogecoin occurred on December 20, 2020, when he posted, "One Word: Doge," causing a 20% price surge. Subsequent tweets in early February 2021, including "Dogecoin is the people's crypto" and "no highs, no lows, only Doge," triggered a further 40% increase.

On April 15, 2021, Dogecoin’s price more than doubled after Musk tweeted an image of Joan Miró's painting Dog Barking at the Moon with the caption "Doge Barking at the Moon." The post was widely interpreted as a reference to the phrase "to the moon," signifying hopes of further price increases.

During Musk's appearance on Saturday Night Live on May 8, 2021, Dogecoin fell 29.5% to $0.49. However, on May 20, 2021, a Dogecoin-related meme tweeted by Musk resulted in an 11% rebound. Later that month, Dogecoin surged by 10% following Musk's tweet linking to a Reddit thread for community proposals to improve Dogecoin.

On December 14, 2021, Musk announced that Tesla would accept Dogecoin for merchandise payments, leading to a more than 20% price increase.

On November 14, 2024, U.S. President-elect Donald Trump announced that Elon Musk and Vivek Ramaswamy would lead a new government initiative called the Department of Government Efficiency (DOGE). The acronym, sharing its name with Dogecoin, caused another surge in Dogecoin’s value.

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