Baby Doge Coin: Viral Meme Coin or Elaborate Ponzi?

Baby Doge Coin: Viral Meme Coin or Elaborate Ponzi?

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Baby Doge Coin is a light-hearted meme coin originally launched on the Binance Smart Chain. Unlike its forefathers Dogecoin (DOGE) and Shiba Inu (SHIB), Baby Doge actively rewards its holders and passively grows their holdings through token reflections.

As we often see with successful meme coins, Baby Doge Coin has built a bustling ecosystem complete with DeFi apps and NFTs. Like their BSC cousin Floki Inu (FLOKI), Baby Doge Coin has also thrown a bone to charitable causes, donating over $750,000.  

How is this puppy different from other dog-themed cryptocurrencies? Did Elon Musk really shill Baby Doge Coin?

What Is Baby Doge Coin?

If you haven’t already guessed, Baby Doge Coin is another canine coin in the crypto market. It was initially launched on the Binance Smart Chain, or BSC, on June 1st, 2021. After attracting significant volume and notoriety, the developers built a blockchain bridge allowing holders to migrate BABYDOGE tokens to the Ethereum (ETH) network.

At 420 quadrillion tokens, the BABYDOGE max supply is one of the largest in the digital asset market. But don’t be fooled by the gargantuan store; over 200 quadrillion tokens have already been burnt, reducing the circulating supply and greatly promoting token scarcity.

Baby Doge distinguishes itself from the other dogs in the pound through a unique token reflection mechanism. A 10% tax applies to every BABYDOGE transaction, with 5% of every buy or sell getting redistributed amongst token holders. The remaining 5% is added to BABYDOGE liquidity on Pancakeswap, which deepens the trading pool and reduces the price impact for new investors. 

Essentially, simply by holding BABYDOGE tokens, investors passively grow their holdings in real-time. This feature was popular amongst trending meme tokens in 2021, led by iconic BSC memes like SafeMoon.

Baby Doge Coin History

During the unbridled madness of the 2021 bull run, Baby Doge launched with almost instantaneous success. Within weeks of getting listed on PancakeSwap, the meme token had already exploded in price and was attracting attention from top-tier crypto exchanges.

Baby Doge euphoria went into hyperdrive when the coin’s name was tweeted out by none other than Elon Musk, crypto’s favorite meme pumper. Baby Doge Coin’s price exploded overnight before returning to its previous levels in a meteoric dump.

The Baby Doge Coin community has continued to develop utility for BABYDOGE and the surrounding ecosystem. In November 2021, the team bridged the crypto asset across to the Ethereum network in the hopes of attracting Ethereum whales to the project. 

Despite the community shipping new products underneath the Baby Doge Coin umbrella, BABYDOGE hasn’t been able to return to its all-time high following Elon’s tweet. The highest price record the meme coin ever recorded was $0.00000002 on July 5th, 2021.

The Baby Doge Coin Ecosystem

To stay relevant amongst other top dogs on the meme circuit, the Baby Doge Coin community has built a typical range of products and services that bring value to BABYDOGE and its ecosystem.

BabyDogeSwap

What meme coin would be complete without its very own decentralized exchange? BabyDogeSwap is the native DEX of the BABYDOGE ecosystem, allowing users to instantly swap popular cryptocurrencies like Bitcoin (BTC), Tether (USDT), and BNB coins on the Binance Smart Chain.

BabyDogeSwap incentivizes liquidity providers by offering generous yield farming emissions to liquidity providers. What’s more, the platform provides staking, meaning that BABYDOGE tokens can be deposited in pools to earn constant emissions of other cryptocurrencies listed on the DEX.

BabyDoge Burn Portal

Perhaps inspired by Shiba Inu, BabyDogeSwap has its own dedicated burn portal. Token holders burn BABYDOGE tokens to increase token scarcity. In return, they can unlock reduced fees when buying BABYDOGE on the ecosystem’s native decentralized exchange.

BabyDoge NFTs

Unsurprisingly, Baby Doge Coins developers were inspired to launch their own NFT collection to expand the BABYDOGE ecosystem. Like Flokitars and Shibatoshis, the Baby Doge Army is a colorful range of unique puppies living on the blockchain.

The original, 2-dimensional Baby Doge Army NFTs can be staked, allowing the owner to mint a 1:1 3-dimensional replica. 2D Baby Doge NFTs are interoperable with the Decentraland (MANA) metaverse, making them slightly more useful than their 3D alter-egos.

Revenues generated from the NFT mint have been put towards charitable causes in the past, with over $400,000 USD donated to ASPCA, Humane Society, and the Best Friends Animal Shelter.

BabyDoge Ecommerce

Fulfilling its destiny as a currency, BABYDOGE has managed to find itself integrated with some of the largest e-commerce solutions on the internet. Web giants like Shopify, Woocommerce and Magento have designed plug-ins that online merchants can use to accept payment for goods and services using BABYDOGE tokens.

Giving Back with Baby Doge Coin

Fortunately, the Baby Doge Coin community has decided to put their success to good use. In fact, over $750,000 USD has been donated to animal welfare groups since Baby Doge launched in 2021.

The largest single donation was made out to the Best Friends Animal Society, which received $100,000 from the Baby Doge Community. Other groups, including Paws With Cause and FurKids, have also received donations dedicated to rehoming pets and supporting animal shelters with a No-Kill policy. 

BabyDoge Coin Pros & Cons

While it may be the runt of litter compared to Shiba Inu, Floki, and Solana’s BONK, BabyDogeCoin still has plenty to wag its tail about. But does the bite match the bark? Let’s review the pros and cons.

Pros

  • Large Holder Base – BabyDogeCoin has over 1.7 million unique holders, giving the meme token an enormous community of passionate supporters. To put this in perspective, Shiba Inu only has 1.3 million holders, according to Etherscan.
  • Passive Holder Rewards – Unlike its top competitors, BabyDogeCoin rewards holders with passive income from trading volume. This incentivizes investors to HODL their tokens, relieving sell pressure and naturally growing each holder’s investment.

Cons

  • Outclassed by competitors – Compared with the likes of Shiba Inu and Floki, BabyDogeCoin doesn’t have the resources or technical know-how to deliver truly original utility. While Shibarium and Floki’s Valhalla Metaverse might have problems, BABYDOGE doesn’t come close to offering the same level of utility.
  • Ponzi-esque tokenomics – While earning passive income from trading volume sounds like a bullish prospect, it’s important to recognize this feature for what it is. This fun feature is a classic meme coin ponzi, where money from new investors is distributed to older investors. With over 1.7 million holders, the reflections are now so minuscule they’re almost unnoticeable.
  • Underwhelming Ecosystem – A decentralized exchange and NFT collection are fun features, but ultimately they aren’t creative or original. BabyDogeCoin needs to do more if it expects to survive in the dog pound.

On the Flipside

  • Meme coins are meant to be just that, memes. Perhaps judging them harshly over unoriginal products and viral tokenomics is unfair. Meme coins are designed to be fun and not take themselves too seriously.

Why You Should Care

With meme coins across the crypto market rallying behind PEPE, the newest crypto market sensation, older cryptocurrencies with strong communities like BabyDogeCoin might see a revival of interest from speculative traders.

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