Before investing in Baby Dogecoin, here's what you should know about its performance in the cryptocurrency market.
Baby Doge is a new cryptocurrency and it has already witnessed the influence of Elon Musk. Elon Musk recently tweeted about Baby Doge and since then, its price has nearly doubled.
Baby Doge, is a spin-off of Dogecoin, the meme Cryptocurrency. Two weeks ago, baby Doge was a lesser-known cryptocurrency and now #babydoge is trending on Twitter, thanks to Elon Musk. Dogecoin has a symbol of the Shiba Inu dog on its tokens and this trend has picked up momentum with Shiba Inu being its own cryptocurrency and Baby Doge also using the same symbol.
Baby Doge, a month-old cryptocurrency, has a message on its website that says the credit goes to "fans and members of the Dogecoin online community" for developing it. Baby Doge works on the integrated smart staking system which means people can add more coins to the wallet with every single transaction. Compared to Dogecoin and Shiba Inu coins, Baby Doge has improved transaction speeds. With a market cap of around US$0.2 billion, which might not sound as huge as even Dogecoin and definitely not Bitcoin and Ethereum, but it is a great deal for a new cryptocurrency.
Considering the hype, Baby Doge seems like a worthy candidate. Baby Doge is one of those cryptocurrencies that incentivize investments by charging a transaction fee. Every time you trade Baby DogeCoin, a 10% fee will be levied. Out of that, 5% gets redistributed proportionally to every Baby Doge investor and 5% gets split to be used for a liquidity pool with Binance Coin on PancakeSwap. Basically, if you sell Baby DogeCoin, you lose 10% but if you hold it, you get rewarded.
Another aspect that needs to be kept in mind is the fact that Baby Doge has a large supply and a low price. The price is a small fraction of a penny, but it saw an increase of up to 1000% in the past weeks. According to this cryptocurrency's whitepaper, Baby Doge aims to
Considering these goals and some ridiculous ones like giving away a Tesla when the market cap reaches US$250 million, and carving a Baby Doge on a mountain at a US$100 billion market cap, it's okay to skip investing in Baby Doge as this seems like short-term hype. The cryptocurrency market is volatile, to begin with, and Baby Doge can ride another wave of the spike but beyond that, there is no practical usage of the coin, yet.
Going by the trend of how unpredicted the cryptocurrency market and Elon Musk is, nobody can assure what will happen to Baby Doge's performance. It will surprise everyone if Baby Doge's hype leads it to cross Dogecoin's value in the coming months.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.