Crypto is quite volatile nowadays. While some are reserved, others are rather optimistic. Yet, these days have been quite agitated regarding crypto memes, specifically because of Baby Doge Coin.
Baby Doge Coin has made quite a buzz in the crypto industry. With a big and highly active community, the crypto project has become surprisingly popular in no time. But why all of a sudden?
All in all, Baby Doge Coin is a crypto project launched in 2021, a spinoff of Dogecoin. Calling itself a “community coin,” Baby Doge Coin has gotten many crypto enthusiasts’ attention, considering its similarities to Dogecoin and the changes and updates it makes.
In essence, BabyDoge is a meme coin, so the community gathers around to give life to the joke and to get some money out of it. But giving credit where credit is due, BabyDoge has a hyper deflationary model and a holder reward from fees.
The crypto project started to gather millions of crypto enthusiasts around it right after it was launched. Although it plummeted for a while, it recovered partially, and the developing team kept coming up with updates.
And while many things make Baby Doge Coin an intriguing crypto project, it still should be noted that it became so popular so quickly through some unexpected situations. And this also led to the project’s market cap increasing in a short period and then getting back closer to its past values. Furthermore, so did BABYDOGE’s price, and by checking a crypto calculator, you can see that the cryptocurrency still has a pretty long way to go.
Furthermore, we should not forget about Dogecoin. Of course, BABYDOGE became surprisingly popular almost overnight, but Dogecoin still is the 8th crypto in the world by market cap. You can even buy Dogecoin on eToro, for example. Besides, you can pay with DOGE for advertising services offered by a crypto ad network. And even after considering this, the internet has been focusing more on Baby Doge Coin lately. Why?
Baby Doge Coin claims to have a meme community of 1.7 million holders that bought BABYDOGE from Binance Smart Chain or Ethereum. Furthermore, the project’s Twitter community gathers over 1.95 million users around the crypto project. This is indeed a surprising number, considering the Baby Doge market cap and price at the moment.
And the thing that concerns some investors is that Baby Doge Coin does not seem to increase in price that much or with a somewhat constancy, despite its popularity and the constantly increasing community. The project had indeed an increase in price and market cap at the beginning of 2023, but it could not maintain it for long.
What Baby Doge Coin aimed to achieve is explicable. The crypto project announced that it would burn some tokens, and this could increase the price of BABYDOGE. However, no one should count their chickens before they hatch.
Burning over 100 quadrillion tokens could increase BABYDOGE’s price, but something else happened. Considering the project’s plan to burn tokens, many investors bought BABYDOGE before the burning, but speculators sold the tokens shortly after, and this led to the price of BABYDOGE not increasing as many were expecting.
The tremendous amount of BABYDOGE burnt combined with investors’ actions impacted Baby Doge Coin’s price. While on June 1, 2023, BABYDOGE had a price of around $0.000000001993, at the moment, the token is trading at approximately $0.000000001585, with many fluctuations during the past week.
The downtrend BABYDOGE experiences may also occur because, although Baby Doge Coin burned 100 quadrillion tokens, there still are over 152 quadrillion in circulation out of a max supply of 420 quadrillion.
And if burning 100 quadrillion BABYDOGE and the token somehow maintaining its price was not enough, at the end of May 2023, Baby Doge Coin was exploited by an unknown attacker who stole approximately 437 BNB (around $137,000) from the project’s liquidity pool. The exploit was detected on May 28, 2023, by a security platform specializing in dApps.
Basically, the attacker used a flash loan to borrow 437 BNB and swapped them for BABYDOGE on PancakeSwap. Afterward, the attacker swapped BABYDOGE for BNB once more on a decentralized exchange and repaid the flash loan, earning a profit of 437 BNB.
While $137,000 may not be that much compared to the $2 million that Baby Doge Coin burned, it still is an event that raises some concerns among BABYDOGE supporters. And once more, with an exploit followed by the project burning 100 quadrillion tokens, the price and market cap of Baby Doge Coin had to suffer.
The main question many crypto users are asking is whether the crypto project will manage to maintain its popularity, community, and reach a stability in what concerns its market cap and price evolution. While having an active community matters a lot, a cryptocurrency that does not increase its price cannot keep its supporters close, and this still remains a possibility for BABYDOGE.
