A representative of easyDNS penned an article on Zerohedge about dropping doge payments. It is an interesting article because it indicates the state of the current market right now.
The firm notes that it has been a crypto-economy participant for quite a while now. For instance, it notes that it was the initial ICANN registrar that would allow Bitcoin as a method of payment. It would also be the first of its kind to enable Ethereum Name services.
Finally, it also notes that it is one firm that has been keeping the leading and most respectable digital asset, bitcoin, on its balance sheet for quite some time now.
That brings up one point, one may not genuinely know how many institutions are keeping bitcoin on their balance sheet, especially if they are privately held firms. An even more important point may be that it holds both digital assets and gold on its balance sheet.
That is a wise option as gold is a tried and tested store of value that has been around for thousands of years, is on central bank balance sheets, and has utility in other ways.
But the reason why they penned the note is because it makes a statement. The firm realized that each action they take makes a statement and creates influence.
Why easyDNS is Dropping Dogecoin
It is always fun to participate in a mania, it has energy, everyone’s making money and it seems like nothing will go wrong. But then the rug is pulled out from underneath you and situations turn for the worse. Dogecoin has seen a significant run up over the year but has seen its value decline fairly recently.
A large portion of its run up is attributed to Elon Musk and his horde of followers. Then a small portion of the run up of this meme coin can be attributed to firms that take actions to accept it, thereby legitimizing the coin.
See, even the creator of doge noted that it was created as a joke, on a whim for fun. But new cryptocurrency enthusiasts saw the cheapness of doge at a fraction of a cent and bid it up. They then bid it up to get it to over .60. Now, if you purchased $1000 worth when it was a fraction of a cent, that turned out in your favor. But if you purchased it at .55, you are now rethinking your investment strategy.
The firm, easyDNS notes that they rolled out their DOGE acceptance as a joke but others may have taken it seriously. The firm notes
“Since [adding doge] we got a fair amount of social media lols, incessant @easydns on twitter, and more than a few people asking us how many retweets will it take to get easyDNS to add [ insert sh*tcoin ] support?”
In other words, in a mania of nonsense tokens, everyone seeks to pump up their favorite token.
Since then, the firm had to clarify that it was a joke and that bitcoin is a legitimate asset while doge is far from it.
“To mitigate any risk that our accepting Dogecoin even in some small way feeds into the misconception that Doge is some viable alternative to Bitcoin, we’ve dropped Doge support.”
It notes that bitcoin and ethereum ecosystems are real deal and have durable characteristics while others like Bitcoin Cash seem to have a lack of legs.
Investing In Everything Crypto? Be Careful
It is possible to earn significant gains with cryptocurrencies but not all are of the same cloth.
To be more precise, at least 90% of the total digital assets on the market are useless and carry no genuine value. In essence, you are bound to lose a significant portion of your funds if you choose to invest for the long term in the 90%.
But if you follow the leading digital assets like Bitcoin, Ethereum, and strong exchange tokens like Binance and Uniswap, you are likely to preserve your gains over the long term.
It is essential to look at durability as opposed to just following “the next bitcoin” headlines.