Baby Doge Coin (BabyDoge): What It Is, What It’s Worth and Whether You Should Invest
It does not come as a surprise to anyone that Baby Dogecoin is creating so much hype. It was launched on June 1, 2021, and saw a 1,000% price spike within just two weeks of that date. By the third week, it had a market cap of a whopping $200 million, and in the fourth week, there were 160,000 holders of the coin.
Seeing its speedy rise to the surface, it’s evident that buyers are taking an interest in Baby Dogecoin. But is it worth the investment? Should you stay away from this momentary fad, or is Baby Dogecoin here for the long haul? Find out below.
What Is Baby Doge Coin?
Baby Dogecoin is a crypto asset created by the online Dogecoin community. According to its website, “Baby Doge seeks to impress his father by showing his new, improved transaction speeds and adorableness.”
Being a deflationary token, Baby Dogecoin has been designed to get scarce with time. Whereas some crypto teams simply destroy coins to limit the number of coins in circulation, Baby Doge also adds coins to holders’ wallets each time they make a transaction, and some coins are added to the decentralized exchange Pancake Swap as part a liquidity pair. Redistributions also go to charity partners, according to CoinMarketCap. That said, Baby Doge has a total supply of 420 quadrillion coins, 125 quadrillions of which have been destroyed and 295 of which are currently in circulation.
Baby Doge currently has no real-world use. However, there is a project in the works that would integrate Baby Doge with Shopify, WooCommerce and other e-commerce platforms as well as such charitable organizations such as ASPCA and Human Society.
Baby Doge Coin Advantages Over Other Cryptocurrencies
Some have made the argument that Baby Doge compares favorably to Dogecoin in that Dogecoin has no cap on its coin supply. However, a coin with no practical utility and a cap of 420 quadrillion coins can hardly be considered scarce. Bitcoin, for example, has true scarcity — Its cap is 21 billion coins, over 18 billion of which are already circulating.
For now, it appears that the only advantage Baby Doge has over other cryptocurrencies is the loyal community that has sprung up around it. With no real-world utility for the coin so far, all of its value lies in its appeal as a meme coin. Of course, Baby Doge is currently trading for just $0.000000003167. That means you can make a speculative purchase of over 630 million coins and risk just $2 — the minimum purchase Coinbase allows.
Why Did It Spike?
Baby Dogecoin spiked for the same reason as its father: Elon Musk. In July 2021, the Tesla CEO posted a tweet, hinting at the token:
“Baby Doge, doo, doo, doo, doo, doo, Baby Doge, doo, doo, doo, doo, doo, Baby Doge, doo, doo, doo, doo, doo, Baby Doge.”
As a result of this tweet, buyers did precisely what they had done earlier in the year with DogeCoin — they started buying.
In just 24 hours, the aftermath of the tweet presented itself as a 228.3% spike in the price of Baby Dogecoin.
What Is Baby Doge Coin Worth?
As of Feb. 22, one Baby Doge Coin is worth $0.000000003167 with a trading volume of $11,519,194 and a market rank of #2868.
As evident, the price is not very promising since it is just a tiny fraction of a single penny. However, investors aim to hoard the coins and reap the rewards if and when it reaches a dollar.
Should You Invest?
According to the Baby Dogecoin whitepaper, the plans for the crypto include getting listed on several renowned cryptocurrency exchanges, creating a wallet to track rewards and forming a marketplace for NFTs, or non-fungible tokens. More recently, Coin Market Cap noted that Baby Doge could have utility as an e-commerce currency.
While these plans are certainly impressive, where does that leave your investment?
Irrespective of all the hype it is getting, Baby Dogecoin is a meme coin that jokes in its road map about starting a religion and carving Baby Doge on a mountain.
What To Consider as an Investor
Any wise investor would have a hard time taking this coin seriously. Also, it’s pretty visible that the developers have named it Baby Doge Coin to leverage the popularity of Dogecoin.
You can’t depend on tweets and hype trains to make your investment moves. With that in mind, it’s best to stay wary of Dogecoin’s new offspring.
Daria Uhlig contributed to the reporting for this article.
Information is accurate as of Feb. 22, 2022.