With the goal of “Serving the Dogecoin Community”, the Dogecoin Foundation was launched this weekend. Similar to the Bitcoin Foudation, the new initiative aims to serve as a distributed, central organization to help spread the use of dogecoins and become a hub for new ideas and product development.
The arrival of the Dogecoin Foundation comes as the digital currency is beginning to experience growing pains after its quick start. Launched in the beginning of December 2013, and based on an internet meme, prices of dogecoin went ‘to the moon’ with the value of the total float of the digital currency hitting over $20 million, and it breached the top 10 of crypto-currency market cap lists. Leading to its appeal was its widely available circulation which enables easier access to mining the digital currency. In addition, even though its mechanics are still based on a blockchain and wallets, being meme inspired has provided a non-tech atmosphere to the currency. As a result, if litecoin is the silver to bitcoin’s gold, dogecoin has been described as “bitcoin’s cooler younger brother”.
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However, despite its appeal, dogecoin has run into a rough patch. Currently being quoted at 0.00000038 on Cryptsy, bitcoin denominated prices are down around 65% from their highs set last month. Partially affecting demand has been the launch of rival viral inspired digital currencies such as catcoin and coinye (although Shibe is Striking Back). Dogecoin was also the target multiple online wallet heists, leading to concerns about the currencies safety. In addition, the dogechain became forked; meaning transactions were temporarily unable to be processed until user wallets were updated to be on a uniform system. As a result, at a low of 0.00000020 last week, dogecoin was walking on a tightrope as it neared extinction and the same fate recently beset on colossuscoin.
But, so far the currency has averted being delisted from exchanges and has seen its value stabilize since reaching lows last week. Assisting dogecoin is its active community, as well as growing eco-system of third party products being built around the coin, such as wallets and merchant tools (such as the donation widget below from DogeApi.Com). Solidifying the goal of widening user adoption is the current launch of the Dogecoin Foundation. Among the foundation’s initiatives are development projects, promotional events, creating a list of infrastructure providers, and charities.
Overall, what has been learned from bitcoin is that there is no such thing as an overnight sensation when it comes to crypto currencies. Succeeding over the long term is the result of an active mining community, individual users, speculators, technology providers, and products. Created by the digital currency’s founders, Billy Markus and Jackson Palmer, the Dogecoin Foundation brings a centralized, yet distributed, source of energy for keeping dogecoin innovation going.