Musk seemingly enjoys engaging with the meme coin community, and investors are hoping his attention will drive the price to the moon. For now, BabyDoge, as it trades, has seen its value balloon by more than 80% in the last 24-hour period as the “Dogefather” helps to bring mainstream attention to the cryptocurrency world.
Baby Doge is only about one month old, according to the project’s social media account. The Baby Doge Coin team says they are growing at a pace of 195K holders in that time, including 25K additional users on the day of Musk’s tweet and “more every minute.”
Unlike its predecessor, Dogecoin, whose supply can be infinite, in theory, Baby Doge is deflationary in nature, meaning that it values scarcity. There is also apparently a coin burn scheduled for today involving 3 quadrillion Baby Doge coins. The lower supply/higher demand dynamics are also driving the price higher, if only for the short term.
Knockoff or the Real Deal?
Baby Doge is a sequel to the project’s larger parent Dogecoin. The baby version seeks to be faster, “hyper-deflationary” and has a built-in staking system for users to earn more coins. The staking system is meant to incentivize users, as Baby Doge “holders automatically receive a 5% fee from every transaction that happens on the Baby Doge network” for doing nothing but holding the coins in their wallet, the website states.
One of Baby Doge’s key use cases is to save dogs. Along those lines, it has partnered with Paws with Cause, which works with dozens of U.S. shelters, for its maiden donation. Baby Doge Coin has outlined a multi-phase roadmap for the project, which involves growing its user base, air drops, NFTs and a Tesla giveaway.
Based on the tone of comments by Reddit members, crypto investors appear to be split on whether BabyDoge is the real deal or just another knockoff attempting to ride on the coattails of its larger and older inspiration — Dogecoin.
So far, Baby Doge Coin has scored a listing on LBank exchange, effective July 1, in the BABYDOGE/USDT trading pair. It will also be listed on XT.com.