Is Baby Doge Coin Scam or Legit?

Bittime - In 2021, Baby Doge Coin stole the attention of many people after the price of this coin skyrocketed by 1,000% in the first two weeks after its launch on June 1 2021. Baby Doge Coin's market capitalization even reached a fantastic figure of 200 million US dollars in the third week. 

Within a month, around 160,000 people already owned this coin. Its rapid popularity has made many people interested in buying Baby Doge Coin, but a big question arises: Is Baby Doge Coin a scam or really legit?

What is Baby Doge Coin?

Before discussing whether Baby Doge Coin is a scam, it is important to understand what this coin is. Baby Doge Coin is a token inspired by the online Dogecoin community, where "Doge" is a cute misspelling of the word "dog". On the official website, it is explained that Baby Doge wants to show its “daddy” the increased transaction speed and of course, its cuteness.

Read also: The Right Time to Buy BABYDOGE at Low Prices

As a token with highly deflationary properties, Baby Doge Coin is designed so that its value increases as the number of coins in circulation decreases. The main goal of a deflationary token is to limit the total number of coins in circulation, which in turn will increase the value of the token over time. 

One of the advantages of this concept is the limited supply of coins, so the supply of new ones that can be mined or sold by the creators is very limited.

To control inflation, Baby Doge not only destroys coins, but also rewards holders with new coins every time they make a purchase or deposit funds into PancakeSwap as part of a liquidity pair. In fact, a number of charitable organizations also benefit from this redistribution. 

So far, the creators of Baby Doge Coin have donated more than $750,000 to organizations such as the Humane Society, ASPCA, Paws with Cause, North Shore Animal League and others that support dog protection.

Is Baby Doge Coin a Scam?

The answer is no. Baby Doge Coin is not a scam. This coin is a real project with quite good intentions, although there has been some criticism regarding the lack of real utility of this coin at this point. 

One of the biggest problems is that the Baby Doge Coin development team has not been fully exposed (doxxed), which is often a red flag for some people in the cryptocurrency world. However, so far this token has undergone two audits, both of which passed.

Read also: BABYDOGE and Katana Inu Collaborate to Launch Exclusive NFT Collection

Baby Doge Coin has a very large total supply, namely 420 quadrillion coins. However, so far 46% of the total supply has been burned, which reduces the number of coins circulating in the market. 

While some argue that Baby Doge Coin is superior to Dogecoin due to its limited supply, many argue that a coin with that much supply—even if some of it has been burned—would not have the same scarcity as Bitcoin which only has a maximum supply of 21 million coins.

Is Baby Doge Coin Listed on Binance?

One of the common questions regarding Baby Doge Coin is why it is not listed on Binance, one of the largest crypto exchanges in the world. Although Baby Doge Coin is not listed on a major exchange like Binance, it can still be traded on the decentralized exchange PancakeSwap. However, to be able to use PancakeSwap, you need to have BNB tokens in your crypto wallet, which can only be purchased through Binance.

Although Baby Doge Coin is not currently used as a means of payment by many merchants, several platforms such as Shopify, WooCommerce, and Magento allow for payments using Baby Doge via CoinPayments. However, not many retailers actively accept Baby Doge Coin as payment.

Conclusion

Baby Doge Coin is not a scam, but it is not a coin that really has any practical use today. This coin is more of a meme coin that has value based on the community sentiment and excitement surrounding this coin. 

Even though there are several advantages, such as the potential for long-term profits thanks to the deflationary principle and the existence of charitable contributions, Baby Doge Coin currently still functions more as a speculative investment rather than as a means of payment that can be used every day.

If you plan to invest in Baby Doge Coin, make sure to do further research and only invest funds that you are prepared to lose. The crypto market is very volatile and can be very risky. However, for some people, Baby Doge Coin may be an attractive option as part of a larger crypto portfolio.

FAQ

What is Baby Doge Coin (BABYDOGE)?

Baby Doge Coin (BABYDOGE) is a meme-inspired digital asset, which is a descendant of Dogecoin. With a hyper-deflationary mechanism and a focus on utility, BabyDoge aims to provide profits to its holders through token burning and sustainable ecosystem development.

Why is now the right time to buy BABYDOGE?

Now is a great time to buy BABYDOGE as the crypto market is gearing up for its next big rally. With a relatively low price and high growth potential, BabyDoge offers an attractive opportunity for investors, especially with strong community support and continued innovation.

What are the advantages of Baby Doge Coin compared to other meme coins?

Baby Doge Coin's advantage lies in its hyper-deflationary mechanism that burns tokens with each transaction, shrinking the supply over time. Additionally, BabyDoge has a thriving ecosystem, including a decentralized exchange and philanthropic initiatives, as well as an active and dedicated community.

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Reference

exolix, Is Baby Doge Coin a Scam or Not?, accessed December 30, 2024.

Author: MF