[Parker] Looking for coin New Normal through Dogecoin
[Parker’s Crypto Story] Dogecoin is a cryptocurrency with a name derived from the Internet meme “Doge,” which became popular in the early 2010s. Dogecoin, featuring he likeness of a Shiba dog, became a “hodl” and started to gain popularity among coin investors. The dog’s enigmatic look played a critical role in its rising popularity. #When did Dogecoin become an icon in the coin market? Dogecoin was first created by Billy Marcus, who was a developer at the International Business Machines Corporation, and Jackson Palmer, who was working for Adobe. In 2013, when Marcus shared his idea of developing Dogecoin on an online community, Palmer responded to it. They forked Luckycoin, which is based on Litecoin, to create Dogecoin. Fortunately, 2013 was when Wired introduced the doge meme as the meme of the year and it started to gain lots of attention from the public. Dogecoin was able to gain its extreme popularity although the coin market was not that big at the time. #Dogecoin Syndrome — from Doge to Dogecoin Since late 2010s, the symbolism of Doge started to move to Dogecoin. The beginning was a video from TikTok that was uploaded on July 2020. It said, “if all 800 million TikTok users invests 25 dollars in Dogecoin, the value will become a dollar.” After the video started to gain popularity, the value of 1 Dogecoin increased from 0.002 dollar to 0.004 dollar. Currently, it is 0.003 dollars. #Why don’t we think about changing our approach to tokenization? The first thing we can think of from the recent Dogecoin trend is its fundamentals. For most cryptocurrencies, investors use fundamental analysis for evaluation. The fundamentals of cryptocurrency exchange include trading volume, coin possession and integrity. However, the fundamentals of Dogecoin, which was originally made for fun after the “doge” meme became popular, are very abstract. Thinking conversely, we can come up with a new approach to tokenization applying the trend of Dogecoin. As it is works for a social and cultural brand using Doge, it might be suitable for tokenization. In Korea’s stock market, politics-themed stocks were first created artificially making up such phrases as “CEO of B stocks are a close college friend of presidential candidate A” or “the largest stakeholder of C has a close connection with presidential candidate B.” This style of politics-themed stocks worsens the gap between Dogecoin and the stock’s original concept as well as the reputation of the politicians. I believe it is better for politicians to make their own tokens revealing that “N percent of the token will be cashed in order to be used for one’s election campaign” at the beginning and keep all their deals transparent. Also, the investors can invest if they are able to handle the outcome. In that way, themed stocks can reduce the gaps while candidates will be able to raise funds for their election campaigns. Some people say “American presidential candidates are under the control of Wall Street,” as lobbying became a very serious issue in the United States. This style of tokenization can be a positive way to realize decentralization of election funds. I hope one can come up with a good way of tokenization applying the Dogecoin case more uniquely and fairly.