What is Baby DogeCoin? All Information You Need to Know About It
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Baby DogeCoin belongs to the now-famous group of meme coin cryptocurrencies. According to its creators, it is a young replica of Dogecoin (Doge). Check out my comprehensive article on the traditional Dogecoin here. Launched in June 2021, it is fast gaining popularity across the industry.
It has become a trend in creating cryptocurrencies that have no real uses, have huge supply limits, and are cheaply priced. By using an almost similar name to an existing cryptocurrency, it makes it easy to market the new coins as investors can pick them up early.
These types of coins fill the demand for affordable cryptocurrencies by speculators.
This approach is working perfectly for Baby DogeCoin so far. Since its launch, its price has multiplied by over 10 times and currently ranks among the top 30 cryptos with a market valuation of $150 Million.
White paper
According to the white paper, Baby DogeCoin is a;
- Transactional cryptocurrency with faster transacting speeds than its peers.
- Deflationary coin- A deflationary coin continuously decrease in supply over time. coin burning and buybacks.
- Transactional fees- It attracts 10% transactional fees on all transactions. One half is redistributed across the blockchain to the holders while the other half goes to a liquidity pool.
These characteristics are not unique as most of the older meme coins use the same principles.
Where to buy Baby Doge Coin
As a relatively new cryptocurrency, Baby DogeCoin is not yet available in most exchanges. However, this is likely to change in the future as mainstream exchanges adopt the coin.
Currently, the major place to buy Baby DogeCoin is on Binance through PancakeSwap. However, you need to convert your normal currency to Binance Coin (BNB) first. Then, you can exchange the BNB for Babe DogeCoin.
Criticism of Baby Doge coin
Ponzi Scheme
Critics have always compared meme coins like the Baby DogeCoin and other similar cryptocurrencies use to a Ponzi Scheme. The idea of rewarding the holders from the transactional fees only benefits the early investors. This disadvantages the late investors who in a Ponzi scheme tend to be the losers.
The critiques argue that investment assets with such traits always fail in the long term.
Meme Coin
Most meme coins cryptocurrencies have little or no real-life use. Baby DogeCoin is no different and there hasn’t been any real use attached to it because;
- It is very difficult to access. -Little platforms are offering it
- It is founded on another meme coin- The idea of creating it from the traditional Dogecoin means the characteristics are almost similar. The traditional dogecoin has no real use as well.
Memecoins make fun of other cryptocurrencies. This foundation gives them ineligibility in playing any other role. Investors keep away from such coins as their roles are not well defined.
Price Manipulation
Baby DogeCoin is vulnerable to manipulation as only a few people control the majority of the coins in circulation. This Dominance makes it possible to influence price through manipulating supply.
As a decentralized cryptocurrency, Baby DogeCoin should operate freely without having a few individuals control it. The risk of price manipulations is a challenge to its long-term success. There have been accusations of widespread price manipulations in the cryptocurrency market.
In some cases, these accusations have been confirmed. This challenge not only affects Baby Dogecoin but the entire industry.
Relationship to Dogecoin
On the website, Baby DogeCoin is termed as the baby to the Dogecoin with a few value ads. Some of the similarities and characteristics and differences are
Similarities
- They are both meme coins
- There are transactional cryptocurrencies
- Their prices are highly affected by influencers
Differences
- Baby Doge Coin has a fixed supply while Dogecoin coin supply is unlimited
- They have different valuations in the market
- Dogecoin is available on most of the trading platforms while Baby Doge coin is not.
- Baby Doge Coin has faster transactional speeds.
- Dogecoin has been in existence since 2013 while Baby Doge Coin was launched in 2021
From this comparison, it is clear the two cryptocurrencies have many differences. I trust the name association is for marketing purposes rather than technological purposes.
Influencer effect
It has become a norm for opinion leaders to influence the price of cryptocurrencies.
Through their action or words, investors translate that into market signals. This has contributed d to the increase in volatility in the cryptocurrency market.
Future of Baby Doge Coin
Due to the unpredictable nature of the cryptocurrency market, it remains difficult to make accurate announcements about the future.
As a meme coin, there are not many uses for it and most of the investors are only using it as an investment asset. Its affordability and huge supply make it easier for more people to own a piece. Without a solid technological innovation backing the coin, its future remains uncertain.
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