The crypto market has bounced back from the small bearish period it experienced after Bitcoin’s (BTC) price almost plummeted back to $60k. However, that spell disappeared as fast as it set in and the market is now enjoying good conditions once again, helped by BTC pumping above $70k.
As has been the case for much of this year, the meme coin market has been one of the main benefactors of Bitcoin’s success. As is always the case when Bitcoin pumps, inventors like to profit and spread their ROI out on altcoins. The meme coin market has benefited from that, and one presale in particular Dogecoin20 (DOGE20).
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Despite being less than two weeks old, the presale has already sold out, having reached its hard cap of $10 million. This is a record-breaking pace, and we cannot remember as much hype around an ICO ever. Let’s get into why investors are so captivated by this new token.
Dogecoin20- The coin that could finally topple DOGE as king of memes
Dogecoin20 (DOGE20) is not the first meme coin that will try to take the place of Dogecoin (DOGE) as king of the memes, but it looks like the first one that has a realistic chance. A lot of this has to do with the project itself, but some of it has to do with timing.
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Dogecoin is the original meme coin. Originally created as a joke, it quickly amassed a huge online following and became a cult hero among the crypto community. Since its humble days, it has now gone on to be a regular member of the top ten tokens in crypto. However, ironically, the explosion in the meme coin market last year has actually worked to the coin's detriment.
Before Pepe Coin (PEPE) launched the meme coin market into a new stratosphere, meme coin projects outside of Dogecoin and Shiba Inu (SHIB) were not taken seriously by the majority of investors. However, once PEPE exploded and brought a huge amount of new investors to the meme coin sector things started to change.
The new influx of investors meant projects evolved and developed to a stage where they were looked at as legitimate investment options. Suddenly, major exchanges like Binance and Coinbase were adding more meme coin projects to their listings, and the sector went from strength to strength.
Dogecoin, however, did not react. While the competition around them was changing and developing they stayed still and put all their eggs in being more widely accepted as a payment method. A very risky strategy that is so far not paying off. Given they almost solely rely on Elon Musk for this it would seem a very risky strategy.
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That is the timing we are talking about when we discuss Dogecoin20. Never has there been a better time to strike, as Dogecoin has seen much less growth over the last year than most of its competitors. So, we have the timing part; now, let’s look at the aspects of Dogecoin20 that are better than the original Dogecoin.
How Dogecoin20 improves on Dogecoin’s negatives
Most of the new project revolves around pitting proof-of-stake vs proof-of-work. The latter is looking like an increasingly outdated system and Dogecoin20 thinks the market is also starting to think this too. There are two reasons that proof-of-stake would seem to be more suitable for the future, the first is it is a much greener solution.
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This is becoming more and more important in crypto as a bigger spotlight seems to be now shining on the market. A lot of this comes from the Bitcoin ETF approvals that came at the start of this year. Of course, they were overwhelmingly good for the market but the one downside is now crypto is in the mainstream, it has become a political football of sorts.
In the US, there has already been an attempt to investigate Bitcoin mining and its energy use. There will be more to come, we are sure. Bitcoin uses the same proof-of-work system as Dogecoin, but because it is the market-leading currency, it acts as a lightning rod for criticism.
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What goes under the radar is Dogecoin uses the same amount of electricity annually as the entire country of Malta. This is quite stunning for a meme coin, and long term, it is not sustainable. Dogecoin20, on the other hand, is built on Ethereum so each transaction uses a miniscule amount of energy when compared to its new rival.
Staking should see Dogecoin be a long-term player in the market
The other huge advantage proof-of-stake has over proof-of-work is the staking element. Any readers interested in the meme coin market will have noticed over the last 6 months or so that a huge amount of new projects have included staking in their ecosystems. This seems like a no-brainer as it adds utility and is beneficial for the project and the investor.
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Meme coins are historically volatile, but adding staking helps protect them from pump-and-dump scenarios. If an investor is going to receive long-term rewards for holding onto a token they are much less likely to sell. Conversely, an investor is likely to buy and stake a token when they know they are going to receive rewards down the line.
These are the two main advantages that Dogecoin20 will have over Dogecoin, but we also love the way they have approached virality. This part of a meme coin is still crucial to its success and it's where Dogecoin carries a huge advantage. Its older age means it has built a huge online following that is difficult for any new meme coin to come close to.
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Dogecoin20 has decided to spread the word of their project through good deeds. A fairly large percentage of the total allocation of Dogecoin20 will be dedicated to community programs and charitable causes. A very helpful and unique way to help your project grow.
Conclusion
Dogecoin20 is one of the most exciting ICOs we have ever seen. The fact it sold out in less than two weeks is nothing short of remarkable. However, there is still time for investors to get a part of this meme coin before listings begin. It would seem like a smart move as it is hard to see this coin doing anything but pumping when listings begin.
