Sisibola

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What is Baby Doge Coin?​

Baby Doge Coin is a cryptocurrency, that's based on another cryptocurrency, that's based on a meme.

It was created by fans and members of the Dogecoin community. Dogecoin, which was on fire to start the year, is a cryptocurrency that started in 2013 and was based on a popular meme. In addition to being newer, Baby Doge Coin is also over 10-times faster when it comes to transaction processing times.

Besides the name, there's nothing connecting Baby Doge Coin and Dogecoin. It's likely that the name choice was just a way to get attention.

Part of Baby Doge Coin's mission is helping rescue dogs in need. On June 24, it announced that it donated $75,000 to a nonprofit called PawsWithCause.

How Baby Doge Coin works​

Baby Doge Coin is one of the many new cryptocurrencies that incentivize holding on to it by charging a transaction fee. Any time you trade Baby Doge Coin, there's a 10% fee. Here's what happens to that:

  • 5% gets redistributed proportionally to everyone holding Baby Doge Coin.
  • 5% gets split and used for a liquidity pool with Baby Doge Coin and Binance Coin (BNB) on PancakeSwap.
In a nutshell, if you sell Baby Doge Coin, you lose 10%. If you keep it, you get rewarded with a portion of the fee everyone else pays when selling. This is becoming a popular trend. Here are a few other cryptos that do the exact same thing:

  • Safemoon
  • Elongate
  • Bonfire
It's a gimmick that has been done before. And after some initial success, those three cryptocurrencies suffered large price drops. That pattern doesn't bode well for Baby Doge Coin.

 
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