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So DOGE… Much DeFi… Wow!

December 24, 2021

Hello, friends! Today I want to talk about an unusual cryptocurrency called DOGE.

It arouses real interest, since it’s a pure community-coin and in fact is the quintessence of faith in cryptocurrency. This is confirmed by the entire coin history, and what is happening now is quite logical and justified.
To understand how the currency-meme with the funny dog Shiba Inu received universal recognition, we need to thoroughly investigate its past. DogeCoin was created in December 2013 based on the LuckyCoin program code, which had a special feature — a random reward for a block.

Yes, that's right. Initially, the reward for the block "floated" within quite wide limits. According to the developers, this would be an additional incentive for miners. But later this decision was recognized as unsuccessful, and DOGE switched to a regular model with a stable reward for the block.

The DOGE Internet meme with a cute dog face, created on the 4chan image board, was used as the "coin face". At the same time, the developers didn’t position their cryptocurrency as a "joke". They preferred some distance from Bitcoin, which at that time was actively used on the black market, and proximity to the masses. And this strategy bore fruit very soon.
The DogeWallet was hacked literally at the very beginning. For a commercial project, this could have been a deafening blow, but not for the DOGE. The community launched the “SaveDogemas” campaign to help the victims, and within a month the losses were covered.
An illustrative example, isn't it?

Later, the DogeCoin community held several more charity campaigns (for example, organized a fundraiser for the Jamaican national team to participate in the 2014 Winter Olympics. The team qualified, but had no money).

In the same year, the community launched the campaign to help the racing driver Josh Wise. At the next competition, he was already steering the DogeCar that many remembered.

In short, the DOGE community has shown itself to be very united, responsive and friendly to newcomers. At that time, this was a rare phenomenon.
Of course, the coin users’ number has increased.
It’s dangerous to go alone! Take this.

The popular cryptocurrency began to appear on an increasing number of exchanges. At this point, two more advantages helped: fast transfer speed (one minute per block) and low commission.

Since there were many crypto exchanges with different trading speeds, DogeCoin turned out to be an excellent option for arbitrage trading and moving funds from exchange to exchange. Accordingly, the owners of exchanges have already become interested in the coin. However, they now had to allocate a certain amount for DOGE, and DogeCoins began to accumulate slowly but surely on exchange accounts.

The low commission, fast transfer speed and the prevalence of the coin began to attract newcomers — and there were quite a lot of them.

In addition, due to the low cost of a single DOGE, even small fluctuations in the exchange rate could bring traders a tangible profit. I think many people will remember this time with warmth: a difference of 2-3 satoshi on different exchanges could bring thousands, tens of thousands of dollars with almost zero risks.

The crypto market was just beginning to form at that time. There were no cross-APIs or bots adjusting the price according to the value of the average inter-exchange rate... and DOGE turned out to be very useful at this stage.

Time passed. The price of Bitcoin, and later a new coin — Ether, steadily increased, and commissions grew. Inter-exchange transactions in DOGE have become a common phenomenon - that's right, why pay $ 20-30 for a transfer, if you can pay a couple of cents? The DOGE listing has become a common phenomenon.
All your base are belong to us.
The number of cryptocurrency users continued to grow, it became almost traditional. At the same time, the main DOGE assets didn't lie under a bushel — the coins flows were constantly moving, fragmented, and distributed to the new and new users' wallets.

And then there was an explosion.

In July 2020, the DogeCoin price rose sharply, thanks to a flash mob in TikTok. The flash mob was launched to raise the coin's value to $ 1.

In January 2021, thanks to Reddit users, DogeCoin rose in price by more than 800% per day, reaching a price of $ 0.07. In February, the coin reached a new high ($ 0.08) thanks to Elon Musk's Twitter post. In March, Mark Cuban, the Dallas Mavericks owner, announced that his team would allow to buy tickets for matches, souvenirs and food for DogeCoin. Two days later, he stated that his franchise had become the largest DogeCoin seller, having completed more than 20,000 transactions.

On May 4, 2021, the DogeCoin price exceeded the threshold of $ 0.50, the coin had risen in price more than two hundred times over the year.

Some people continued to think that this was a long-running joke - ignoring the huge DOGE community, the active use of the coin for arbitrage trading and the banal users’ convenience. They say that the coin-meme has no future.
However, the actions of large investors, exchanges, and ordinary DOGE holders have shown that all this is not a joke. The coin was recognized, so the price increase was due to objective reasons, and the hype only gave the necessary impulse.
Some analysts have expressed fears that this will become a minus rather than a plus for arbitrage trading in DOGE — they said that transfers will no longer be so profitable with the further DogeCoin's growth, and people will lose interest in the coin.

Fortunately, this is unlikely. In addition to unlimited emission, the DOGE blockchain has a built-in mechanism for annual five percent inflation, so that commissions will not soar above a certain threshold in any way.

The most interesting thing is that all these mechanisms, created in 2014, are perfectly suited to the modern market. Maybe it’s really fortune?
Multi-track drifting

DOGE, as mentioned above, has become a very well-known and widespread coin. But has it reached the peak of its growth? What to expect in the future?

As cryptocurrencies rise, decentralized financial services (DeFi) have become a global phenomenon. Standard banking instruments have changed and converted into more transparent and understandable financial products.

But is everything that good with decentralization? As it turns out, not very much. Unfortunately, most of the DeFi projects are only formally decentralized. Strict control of utility tokens in projects, centralization of key services…

On the one hand, it is clear why this is done. After all, the loss of ability to manage the DeFi service is likely to cause discontent among investors, and they will go to competitors, which will surpass the possible advantages of full decentralization.
But all this is true only at the point when the DeFi tool control element is used strictly within the one project and nowhere else. If you add a truly massive and convenient cryptocurrency to the ecosystem - such as DOGE, for example! - the situation is changing sharply. And you don't even need to give up your own managing token! It is enough to duplicate some functions using DOGE.

For example, this is implemented in the FOIL Network. On the NFT marketplace you can use FOIL and DOGE for buying and selling, without any restrictions.

Users also have access to a quick FOIL-DOGE swap and trading on its own decentralized exchange (DEX). And if we take into account that all these features are available directly from the wallet, then we can already talk about a fully decentralized DeFi ecosystem!

Because even an accident and disabling web services will not interfere with users in any way. And the prevalence of DOGE will have a positive impact on the entire project's liquidity.

What will DogeCoin users get? They will be able to use a whole new platform with interesting features, where DOGE is used fully in both DeFi and marketplace transactions, and not just as an additional trading pair.
And this will be a step forward. Another step for a coin that was once considered just a joke.

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