As Dogecoin (DOGE) briefly saw a spike in value in 2021, several related, competing coins have sprung up, despite the subsequent DOGE price plunge.
These are meme coins that are based on the original Dogecoin. Baby Doge Coin (BabyDoge) is one of the spinoffs. DOGE is said to be the “father” of BabyDoge.
What is the Difference Between Baby Doge and DOGE?
The two cryptocurrencies are both meme coins that are highly volatile and speculative. That said, BabyDoge has attempted to incorporate a few added features that make it unique from DOGE.
Here are some of the main differences between the two altcoins:
|Purpose||Meme coin, joke currency||DOGE improvement, Pet charity|
|Market cap||$33.5 B||$52.4 M|
|Price||~ $0.25||~ $0.0000000019|
A few things that make BabyDoge unique are its commitments to coin scarcity and a pet charity. The crypto currency accomplishes this through coin burning and donating some coins to save dogs.
Baby Doge Coin’s developers maintain a charity wallet with 2.2% of the total supply of coins, which they claim that they donate to dog rescues and shelters.
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Is the Supply of Baby Doge Coin Limited?
There are 420 quadrillion Baby Doge Coins in existence, according to the Baby Doge Coin team. They claim that nearly 27.6 quadrillion of these are in public circulation. Note that these numbers have been self-reported by the people behind BabyDoge and have not been verified independently.
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The coin is very new and no one knows the exact identity of the developers. Information on how BabyDoge works is therefore not 100% verifiable. But as far as anyone knows, the supply is capped at 420 quadrillion. While this is a large total number of coins, BabyDoge brands itself as being “hyper-deflationary” due to three functions designed to reduce the supply. These include:
• Coin burning
• Liquidity pair acquisition
Coin Burning is a common practice among altcoin projects that seek to limit their supply. This practice involves periodically sending tokens to a “burn” address from which no one can recover them, effectively eliminating those coins from existence.
Liquidity Pair Acquisition
Also known as LP acquisition, this involves adding coins as a liquidity pair on a decentralized exchange, in this case Pancake Swap.
Reflection is the process of adding coins to holder’s wallets.
Of the 10% transaction fee that Baby Doge coin pay, half gets redistributed to users of BabyDoge. A smart contract controls the other half, selling it to a smart contract into Binance Coin (BNB) and automatically added as a liquidity pair on the Pancake Swap decentralized exchange.
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Where Can You Buy Baby Doge Coin?
Because BabyDoge is a much smaller cryptocurrency, there are only a handful of lesser-known exchanges that trade the coin. At the time of writing just one of 10 centralized cryptocurrency exchanges and one decentralized exchange allowed user to trade Baby Doge Coin. The most common trading pair is Baby DogeCoin against the Tether stablecoin, or BabyDoge/USDT.
At the time of writing, the top exchanges for trading BabyDoge included:
• DODO BS
• Pancake Swap (v2)
To buy Baby Doge Coin, you must create an account on one of the exchanges that trades BabyDoge, fund their account, and make a purchase. The process is generally the same for investing in cryptocurrency in general.
Is Baby Doge the Same as Dogecoin?
Baby Doge Coin (BabyDoge) is a separate cryptocurrency from Dogecoin (DOGE). The DOGE meme coin gave birth to the BabyDoge meme coin, metaphorically speaking.
BabyDoge has a market cap of around $564 million, whereas DOGE has a market cap of about $27 billion. Doge was created in 2014 while BabyDoge was created in 2021.
Refer to the table earlier in this article for additional differences between the two coins.
Other Dogecoin Inspired Coins
Baby Doge is not the only cryptocurrency inspired by DOGE. There are many DOGE-like imitators that have sprung up recently. There have even been imitations of the imitators. This has become such a problem that Coinmarketcap.com has had to place a disclaimer on their Baby Doge Coin page stating that the page is, in fact, about the original BabyDoge.
But besides BabyDoge and DOGE, there have been many other dog-inspired meme coins that have risen to prominence as well. Shiba Inu coin can be found among these. The original DOGE meme depicts the face of a shiba inu dog, and someone developed a separate spin-off coin based on this.
Created in August 2020 by someone using the pseudonym “Ryoshi,” the Shiba Inu coin is similar to BabyDoge in that SHIB has a campaign with Amazon Smile that collects donations to help rescue real, live Shiba Inu dogs by partnering with the Shiba Inu Rescue Association. Shib has a much larger market cap than BabyDoge, however, being valued at nearly $3 billion, making it the 40th largest cryptocurrency by market cap at the time of writing.
The recent Dogecoin craze has spawned a flurry of new dog-based meme tokens. BabyDoge and Shiba Inu are among the most well-known, but there have been many others. There may be more to come in the future, too, but it’s important for investors to do careful analysis in such coins before making an investment.
BabyDoge is a very small cryptocurrency, being ranked #2589 in terms of market cap. Five hundred million BabyDoge coins would be worth less than one U.S. dollar at this time. Many investors believe that meme coins and many other altcoins have no practical value and doubt their long-term future. They are among the riskiest investments available to the average person.
Whether you want to trade altcoins or Bitcoin, a great way to get started is using the SoFi Invest crypto trading app, which allows you to build a portfolio that could include Bitcoin, Ethereum, Dogecoin, Litecoin, and Cardano. You can also use the app to easily invest in more traditional investments such as stocks or exchange-traded funds.
Photo credit: iStock/sdominick
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