The need for crypto celebrities like Elon Musk to promote meme coins like Dogecoin
All top 20 crypto tokens are down on April 6 – except Dogecoin. DOGE is up 6.6% in the last 24 hours. But it’s not related to any particular tokenomics or utility drops.
Tesla CEO Elon Musk is largely to thank for Dogecoin’s popularity. This is true both today and last year when DOGE grew 1,060% over the month of April to hit an all-time high of $0.7376 in early May. The price hike helped mint Dogecoin’s first millionaire, the so-called SlumDOGE Millionaire.
Dogecoin might be a fantastic headline-maker – but it can easily make crypto newcomers believe that cryptocurrencies need media attention to make you ROI. It’s worth at this point exploring new projects (Dogecoin launched in 2013) that aim to generate ROI without needing new investors to push a token’s price up – like EverGrow Coin.
No celebrity adoptions, no Tweets, no memes, just pure tokenomics. This next movement in crypto is quickly challenging the status quo in 2022.
Meme-coins vs reflection coins
Meme-coins like Dogecoin and Shiba Inu had a mind-blowing run in 2021, with DOGE jumping from $0.008 in January to its all-time high of $0.736 in may. In that time, Dogecoin’s market cap grew from $500 million to $84 billion. Think about that: a project worth tens of billions based on an amusing picture of a Japanese dog.
Tweets from Elon Musk calling Dogecoin the ‘people’s crypto’ and his ‘fav’ token helped boost DOGE last year. Mark Cuban, investor and owner of the Dallas Mavericks NBA team, also Tweeted about DOGE calling it a token ‘people actually use’. However, at the same time, CBNC reported analysts calling Dogecoin a ‘bubble’ in the crypto market.
Indeed, Dogecoin failed to post a new all-time high in November alongside other top crypto tokens. Partly this could be because new meme-coins like Shiba Inu came along, but also because Dogecoin hasn’t actually achieved much more merchant adoption besides at Tesla Inc – where you can use DOGE to buy merchandise, like a quadbike for kids.
Investors looking to buy up Dogecoin in 2022 should look at the long-term possibilities or further merchant adoption, before getting FOMO from the headlines.
Crypto that ‘self-generates’ its own rewards
One of the newest trends in cryptocurrencies is reflection tokens. The most famous reflection token, SafeMoon, launched last year with tokenomics that charge a 10% tax on all SAFEMOON transactions. This tax is instantly distributed to the wallets of investors as a reflection.
Reflection tokens simplify the process of making wealth from crypto, as you don’t need to worry about selling up when the market is at its peak. However, price fluctuations still depend on new investors learning about the project and buying in.
EverGrow Coin is one of the most ambitious reflection tokens that aims to be the first token to ‘self-generate’ its own rewards for investors. The EverGrow Coin chairman, top European investment advisor Sam Kelly, explained in a Tweet how the EGC token is ‘not designed to be a currency’.
Kelly said the main ‘use case’ for EverGrow Coin was thinking of it as a share in an ecosystem of applications that generate income. Profits are used to buy up EGC tokens and burn them, to drive up prices, or distributed 100% as extra rewards when the market is growing. EverGrow Coin generates profits from its NFT marketplace and content subscription platform called Crator – though it will soon join The Abstract metaverse.
EverGrow Coin like SafeMoon charges a transaction tax (14% rather than 10%) though it pays out BUSD stablecoin reflections – not the native EGC token. To date, it’s paid over $35.8 million to investors in ROI totally unrelated to price fluctuations.
The world of crypto moves fast, and the right sense of where the market is heading is invaluable for investors hoping to maximize their ROI. Though meme-coins dominated 2021 it’s worth asking yourself: can it do the same again? Dogecoin is lucky to have celebrities like Elon Musk and Mark Cuban backing the project, but reflection tokens that almost replicate stocks and dividends are working hard to prize tokenomics over hype.
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