DOGE coin has been one of the most talked-about cryptocurrencies in recent times. Influencers and celebrities have backed the crypto to the moon, quite literally. A major player in the hype has been Elon Musk, who has caused the cryptocurrency to soar in value on numerous occasions.
Recently, a new project, Baby Doge, has spiked in popularity. The novel meme-based crypto is the latest popular cryptocurrency. Not surprisingly, after Elon Musk tweeted about it, more and more people are joining the project’s community.
Let us look at what the new crypto is, the technology behind it, how to buy and store it, and if it is a good investment or not.
What Is Baby Doge Coin?
Baby Doge launched in June 2021 and is a play-off of Dogecoin. It continues the current trend of meme tokens since the success of its ‘father’ coin.
Because it works with the Binance Smart Chain, it is a BEP-20 token. This blockchain uses various techniques to allow cross-chain transactions. It also promises faster block speeds than the Ethereum network.
Although it is too early to ask whether it’s available for transacting at the best crypto casino, Baby Doge has seen both growth and decline over the last month. As we mentioned, the crypto did spike due to an Elon Musk tweet.
The website advertises Baby Doge as a deflationary token that will increase in value over time. Coins are burned with every transaction and to date, about 29% has been burnt. This is to keep the supply lower than the demand, thereby increasing the value of the token in liquidity pools.
Charges are a 10% fee for every transaction. Of that, 5% goes to coin holders, and the other 5% is added to the token’s liquidity. This means that the barrier of entry is relatively high, but early adopters can benefit from the token’s growing popularity.
Furthermore, the project has set out an ambitious roadmap. It includes rewards for holders after the project meets specific objectives. The objectives range from reaching a number of holders, a mountain carving of the Baby Shiba Inu logo, and creating a religion after the token reaches $500 million market capitalization.
Accordingly, this project does not make any innovations with blockchain technology or provide future use cases for the token. It is purely focused on community popularity with memes and using profits for charity. Their most notable charity, PawsWithCause, has received over $95,000 from the project.
Baby Doge Technology
The developers of the project claim that Baby Dodge is much faster than DOGE. The OG runs on the proof of work protocol, which is generally much slower than proof of stake or proof of authority protocols.
To put it into perspective, DOGE currently has a block speed of about one minute. This means it takes miners one minute to add a group of transactions in a new block on the network.
Baby Doge, on the other hand, runs on the Binance Smart Chain (BSC). This blockchain runs alongside the Binance Chain and is based on smart contract technology.
The BSC is compatible with Ethereum Virtual Machine (EVM). This means that developers can create Decentralized applications on Ethereum and use them on the BSC. Additionally, the BSC allows cross-chain transfers and the creation of pegged tokens. For example, developers can create a BEP-20 token that links with another cryptocurrency like Bitcoin or Tronix.
BSC uses the proof of staked authority consensus mechanism. Here the platform votes for 21 representatives. These representatives decide which blocks to add to the BSC. Using this mechanism makes the network much faster. It has a reported block speed of five seconds, which makes it an attractive alternative for DeFi (Decentralized Finance).
BSC has several DeFi applications, including PancakeSwap, a decentralized exchange. It uses an Automated Market Maker (AMM), which means that traders do not use an order book to make trades. Instead, they need to use liquidity pools to swap tokens.
Users can add liquidity to existing liquidity pools using a BEP-20 token. They can hold their tokens, create a new trading pair, or swap for other cryptocurrencies.
Why Is It So Popular?
This brand-new cryptocurrency launched on June 1st, although its first recorded price only appeared on coingecko.com on June 9th. Currently, it has been live for over a month, and its initial price started at $0.00000000099. Since then, the meme-based crypto has jumped in popularity.
In three weeks, its market cap reached $200 million. Its price also shot up by more than 1000% in this period and it reached over 160,000 token holders after four weeks.
Elon Musk, a big advocate for DOGE, recently tweeted about the new cryptocurrency. He referred to a Baby Doge instead of a baby shark; a pun of the popular children’s song, “Baby Shark.”
The new coin doubled in price the day after the tweet. But it fell by 22% the next day. In its first month, the coin’s price rose by 1290.2%
Currently, the new project’s popularity stems from its attachment to the famous Shiba Inu dog meme. It is using DOGE’s hype to gain more users and holders.
While this is a short-term strategy that will benefit early adopters over the next few months, the hype might die down. And when this happens, many holders might offload their coins for the next big crypto project.
The purpose of this project is to be charitable and one for the community. Just like DOGE coin, this new kid on the block has partnered with a few charities to help dogs in need.
The first notable partnership is with PawsWithCause. The project has already donated $75,000 to this charity. According to an audit done on the project, the charity is legitimate, and the funds were donated.
Next, the project has also sponsored a NASCAR team. Brandon Brown’s Camaro will have the baby Shiba Inu logo, and the driver spoke about how the new cryptocurrency is a great initiative for pet owners and dog lovers.
Furthermore, Brandon Brown and Baby Doge also donated $20,000 to Furkids. They will use the funds to buy a new van that will transport homeless dogs to states that do not put them down.
Moreover, the project has an active community on various social media platforms. It has over 100,000 Telegram members and more than 100,000 Twitter followers, all of whom it relies on to drive the coin’s popularity. For example, there are Twitter retweet campaigns that encourage followers to retweet content. In return, they receive announcements regarding token burning and daily trading volumes.
How To Buy The Currency
This new cryptocurrency is not available on the major centralized exchanges yet. Its daily trading volume is still too low. That said, it is available on PancakeSwap.
Potential buyers need first to obtain a reputable and compatible crypto wallet. These can range from mobile, web, hardware, or paper wallets. Each has its pros and cons and needs to be compatible with BEP-20 tokens. There are Metamask, TrustWallet, SafePal, and a few others to choose from.
Next, go to PancakeSwap and unlock your wallet. After that, you need a crypto balance in your wallet. PancakeSwap does not allow crypto purchases with fiat currencies. This means you need to buy a major cryptocurrency to trade, such as BNB (Binance coin) or BTC (Bitcoin).
To do this, you could use the Binance exchange. Here you need to follow KYC protocols and provide the exchange with your ID and proof of address.
Next, you need to add a payment method. Then, you can purchase BNB or BTC using your wallet address.
After that, you can swap tokens in liquidity pools on PancakeSwap. If you want to trade your BNB for Baby Doge, you deposit BNB into the BNB – BabyDOGE pool. You will then receive tokens with the same value as your deposited tokens.
Proceed with caution, though. Swapping tokens has the risk of impermanent loss. This means that the value of your deposited tokens might drop, meaning you receive less of the other token in return. Though price volatility only affects smaller cryptocurrencies. BTC and BNB are less prone to these dips.
How To Store Your Baby Doge
There are many crypto wallets that you can use to store your tokens.
An offline paper or hardware wallet is the most secure because it does not need to connect to the internet to view your addresses.
If it’s convenience that you are after, you could use a web or mobile wallet. These are less secure, but users can access their wallets from a mobile app or a web browser. This makes it much simpler and faster to make smaller trades.
Let us have a look at a few of the most popular crypto wallets:
1. MetaMask Wallet
This mobile/web wallet is one of the most popular Ethereum-based wallets available. Users can use it from their browser as an extension. They can also use it on BSC.
Additionally, MetaMask has hardware wallet integration. This means that users can link their physical wallets to MetaMask for added security.
SafePal is a software and hardware wallet. Binance Labs recommends it as it provides users with full offline cold storage and air-gapped sign-in. It also has a self-destruct option in case a user loses access to their wallet.
This wallet also allows users to swap popular cryptocurrencies like ETH (Ether), BTC, and LTC (Litecoin) for BEP-20 tokens. This makes it an excellent option for obtaining Baby Doge without leaving the wallet.
3. Ellipal Titan
This hardware wallet looks like a small smartphone, features a touch screen, and has an Android and iOS app. Users can easily perform BSC transactions on its straightforward interface. Furthermore, it is compatible with all BSC DeFi applications like PancakeSwap.
Users can also choose to use air-gapped security, which means that the wallet is completely disconnected from the internet. When active, users cannot access Wifi or Bluetooth. This makes it the most secure listed wallet.
Finally, Baby Doge holders can earn rewards directly from their wallets. This means they do not need to stake their coins. They receive 5% from each transaction on the network.
Is Baby Doge a Good Investment?
Many cryptocurrency projects fail because they offer little innovation in the crypto market. Bitcoin is the longest and most trusted blockchain. It has utility because it is widely available. At the same time, Ethereum popularized smart contract technology and sparked the new DeFi sector. These projects remain popular and have stable prices because they have many use-cases.
Other cryptocurrencies like DOGE do not have unique features that assist crypto holders. They rely on hype from celebrity influencers and their active community. Baby Doge is similar. It promises faster block speeds using BSC, but not much else.
Furthermore, the creators have chosen to remain anonymous. This is par for the course for many of the other meme-based coins available. But it does not stoke investor confidence if the creators of the project are shrouded in secrecy.
Additionally, the coin’s current growth coincides with its growing mainstream popularity. After Elon Musk tweeted about it, its value doubled. But the price dropped shortly after.
With each new trend and announcement, the coin receives a bump in its price. This is not sustainable for the project’s success. Hype always dies down, and with the notorious volatility of the crypto market, this coin is in danger of hitting rock bottom after some peaks.
To conclude, the currency is not a long-term investment yet. It is too early to tell if the project can maintain its momentum. Since its launch last month, it has shown massive growth, but it currently has no other price drivers except for hype.
Baby Doge is a spin-off cryptocurrency that is using DOGE’s current popularity to gain more users. Its smart staking mechanism rewards newcomers but might hurt late adopters because 10% to buy or sell it is a bit steep.
Lastly, it has faster block speeds than Dogecoin, but its future remains uncertain. The project promises massive rewards to the community after reaching certain milestones. Let us see if they can reach those heights.