What You Need To Know About Baby Dogecoins
Baby Dogecoin has gained tremendous hype since its launch in June 2021. Within just the first three weeks, it reached a market cap of $200 million.
What is Baby Dogecoin?
Baby Dogecoin is a cryptocurrency developed by the online Dogecoin community. In their own words, “Baby Doge seeks to impress his father by showing his new, improved transaction speeds and adorableness.” It is designed to be a deflationary token, which means it gets scarce with time.
How did it get so hyped?
Just as everyone started buying Dogecoins after a tweet from Elon Musk, the same thing happened with Baby Dogecoin. Within 24 hours of Musk’s tweet, the prices of Baby Dogecoin spiked up.
Advantages of Baby Dogecoin
- Baby Dogecoin’s low transaction fees are what gives it an edge over its otherwise many similar characteristics to its father crypto, Dogecoin.
- It provides faster transaction speed and its integrated smart staking system lets you earn more money as you perform more transactions.
Few Things To Know Before Investing in Baby Dogecoin
- At the time of the launch of Baby Dogecoin, its supply was 420 quadrillion tokens. And instead of expanding its supply, the team is contracting it by destroying some of these tokens. So, the Baby Dogecoin team possesses full control as they carry out the burn manually.
- The seller has to pay a 10% fee on each transaction, of which 5% is redistributed to all the Baby Dogecoin holders.
- Meme coins like these might not be a good option for long-term investments as they rely mostly on marketing to create the hype and push up the prices.
Final Thoughts
Baby Dogecoin is the spinoff of the meme-based cryptocurrency, Dogecoin, which has gained quite a lot of popularity due to Elon Musk’s tweets regarding it. It varies in terms of transaction speed from Dogecoin. Investing in cryptocurrencies brings its own share of risks, but investing in such meme coins might seem even riskier.
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