It is not surprising that there is a great deal of hype surrounding Baby Dogecoin, as meme coins have been enjoying a lot of popularity these days. Launched on June 1st 2021, Baby Doge comes from the fans of the Dogecoin project, but does not have any direct connection to it. Within two weeks of its launch, the coin saw a price spike of a whopping 1,000% and its market capitalization had reached a massive $200 million by the third week. There were 160,000 people who owned the coin by the fourth week of its launch.
Considering its speedy climb in the market, it is no wonder that people are taking an interest in this Alt coin. What should you know about it? Let’s find out:
Introduction
The online Dogecoin community came up with the crypto asset they chose to name Baby Dogecoin. As per its website, the coin boasts improved transaction speeds and is a deflationary token. Therefore, it will get scarce over time. There are some crypto teams out there that decide to limit the number of coins in circulation by destroying them. In the case of Baby Doge, every time holders make a transaction, coins are also added to their wallets. Likewise, there are also some coins added to Pancake Swap, the decentralized exchange.
CoinMarketCap also stated that charity partners also get redistributions. The total supply of Baby Dogecoin is about 420 quadrillion coins and it has already burnt some of its supply.
What problems does it solve?
The original Dogecoin project has some technical shortcomings that have been resolved by Baby Dogecoin. Its scalability is certainly the most prominent feature because it leverages the Binance Smart Chain instead of a proprietary blockchain. This enables the protocol to offer improved transaction times and better scalability. A block of transactions is approved by Baby Doge every 5 seconds, while Ethereum takes 13 seconds for same.
Inflation is another major concern that Baby Doge has managed to eliminate. The hyper-deflationary setup of the coin can help users avoid inflation, which refers to the loss of buying power. While it can happen due to various reasons, an influx in tokens is also one of the causes and this can reduce the asset’s demand.
Fortunately, Baby Doge’s demand goes up because the number of coins being circulated is reduced over time. 40% of its total supply has already been burnt and this has pushed up demand for the coin. Baby Doge is aimed at empowering HODLers because a currency’s store of value characteristics can be improved via deflationary protocols.
The possibility of rug pulls is also something that Baby Doge developers were looking to reduce. This is when liquidity is removed from a project by the developers, which causes the value of the token to fall. Liquidity locks have been integrated in the case of Baby Doge, so a certain amount of tokens are always part of the liquidity pool. This boosts the confidence of investors in the project in the long run. Security was another concern that Baby Doge’s developers addressed. Numerous third-party audits have already been performed and Dessert Finance also conducted an in-depth audit.
Why did it spike?
As mentioned above, Baby Dogecoin had experienced a massive spike in a short amount of time and the reason was the same as that of Dogecoin; Elon Musk. The CEO of Tesla had posted a tweet in July 2021 that hinted at the token.
After his tweet, people did exactly what they had done with Dogecoin earlier in the year i.e. started buying Baby Dogecoin. It took just 24 hours for the token to record an increase in price of about 228%.
Future
As per Baby Dogecoin’s whitepaper, it plans on getting listed on various crypto exchanges. Other plans include the formation of a market for non-fungible tokens (NFTs) and creation of a wallet in order to track records. CoinMarketCap also noted that it could be used as an ecommerce currency.