“The objective is to impress my father by demonstrating my new increased transaction speed and cuteness.”
That’s how Baby Doge, the recent addition to the cryptocurrency bourse and the month-old offspring of the already popular Dogecoin is being described. Its claim to fame? With a Shiba Inu dog staring back at you endearingly, Baby Doge offers faster transaction speed and is a yield-farming token based on an integrated smart staking system, which means that the more you transact in it, the more money gets added to your wallet.
Founded on June 1, 2021, the first recorded price of the baby dogecoin was $0.000000000175. With a six-step establishment programme in place with a total supply of 420 quadrillion tokens, it is the last stage where things get heated, quite literally! Think physically burning 125 quadrillion tokens and manifesting a full-blown Baby Dogecoin religion with a market capitalisation of $500 billion! Currently, 1 Baby Doge equals merely $0.0000000061, which amounts to just 0.04 percent of the current market capitalisation of Bitcoin.
At the moment, Baby Dogecoin has a market capitalisation of almost $304,458,000, endorsed by the mercurial Elon Musk, Tesla’s founder, whose frequent supportive tweets were also one of the main reasons behind the rise of Dogecoin. As of July 5, 2021, Dogecoin is trading at $0.2319.
With its development credited to the fans and members of the dogecoin online community, the cryptocurrency incentivises holding on, which means that every time you trade in Baby Dogecoin, a 10 percent fee is levied. This implies that you lose 10 percent every time you sell this altcoin. The breakdown is such that 5 percent gets redistributed to every Baby Dogecoin investor in a set proportion, and 5 percent is allocated to the liquidity pool with another popular cryptocurrency, Binance coin. Presently, the altcoin is traded only on three exchanges both domestically and internationally, namely BitBnS, WazirX, and Binance.
According to Edul Patel, CEO & Co-founder, Mudrex, an automated crypto trading platform, wide-scale adoption of a particular cryptocurrency is largely dependent on its value-addition and viable end-use. “Over the years, the disruption in the crypto industry has been brought by tokens that have practical use cases. Simply put, if the crypto token makes any financial transaction a bit more efficient, that token usually gains large-scale adoption. Coins that solely rely on tweets to go up in prices are bound to lose steam eventually."
That stands true for all major cryptocurrencies in circulation today. Take Ethereum, for example, which facilitates more than simply transacting in its native cryptocurrency, Ether. Its blockchain-based applications open a fascinating doorway for the development of smart contracts, decentralised finance, and more.
Similarly, consider Chia, which is a relatively smaller cryptocurrency with a current market capitalisation of merely $245,414,741 ($24.5 crore), as per Coin Market Cap. But its end-user case makes for an appealing value, providing Proof of Space and Time to utilise cloud storage solutions and countering the adverse environmental concerns that have haunted the world of cryptocurrency mining for a long time now.
“The crypto community is broadly divided into two segments on 'BabyDoge' now. One segment, consisting of 300,000+ supporters, believes in the integrated smart staking system of 'BabyDoge' and is accumulating it. The other segment feels that it is just another get-rich-quick scheme coin that will eventually lose interest. The bottom line is 'BabyDoge' is a coin that is currently driven by the 'Fear of missing out' frenzy and has negligible usage in the near future. Until the developers figure out a use case for this crypto, it is less likely to bring any major disruption to the crypto industry,” Patel elaborates.
Is it worth the hype?
You’ll have to wait and see. While the cryptocurrency registered a stellar 132 percent rise in its trading volume over the last 24 hours, it remains to be seen whether Baby Dogecoin succumbs to the doomed fate met by mostly all major meme-currencies, or if it will potentially provide a smart application for its existence to cement its long-term sustainability.
As per a CoinDCX spokesperson, “after almost single-handedly stoking demand for Dogecoin, the celebrity crypto investor Elon Musk has now taken a liking to Baby Dogecoin (BABY DOGE) as seen from his recent tweet. However, what we need to understand is that it is essentially a sequel to its larger parent Dogecoin (DOGE). BABYDOGE is deflationary in nature as its supply is limited and the current lower supply and higher demand dynamics are largely driving prices higher. Additionally, BABY DOGE is in principle a crypto asset based on DOGE which in itself has the community divided on its technical value. Despite the hype surrounding it, investors should be cautious before investing in such meme coins since their technical capabilities are limited and are currently in demand due to the influence of certain influencers.”