I have stated before why I believe Dogecoin is here to stay as a cryptocurrency, citing its community and its willingness to buck the trends other cryptocurrencies embrace. However, this week Dogecoin co-founder Jackson Palmer set his coin apart from the pack further when he told Techly that he rejected $500,000 worth of investment offers from venture capital firms. Palmer had this to say:
I really think Dogecoin’s strength is that it belongs to the community that has brought it this far. It’s the internet’s currency, and doesn’t rest in the hands of any one person or entity.
I guess the argument of VCs is that taking investment could assist in the growth of the currency – but the fact is that the bulk of it’s growth comes from the community and not the small core team we maintain for official projects like charity sponsorship. I’m fairly confident in the moon trajectory the community has set, and I believe in them.
Palmer’s rejection of a half million dollars to develop Dogecoin is just one example of many symbolic gestures that continue to provide the Dogecoin community the motivation it needs to keep up its energetic support of charitable causes. Many Dogecoiners (Shibes) believe that acceptance of a large investment would detract from the charitable nature of the currency. Reddit user “billybambam” said, “I don’t think I’ve ever felt so proud of someone I’ve never met in my life,” and another user was quoted as saying, “Wow, such morality, very integrity.”
Palmer best encapsulated the Dogecoin mission by saying, “The fact is, that out of nothing, I can contribute $30,000 to a children’s charity that I believe in, that is payment enough.”
By highlighting the community as being the real value backing Dogecoin, Palmer has demonstrated that innovative coding is not the only thing that will propel cryptocurrency towards mainstream adoption in the future. Because of this innovative spin on intrinsic value, Dogecoin prices were able to weather a fork of their blockchain, an obstacle that had previously dropped the currency’s value by 80%. During this most recent fork, the exchange rate only dropped by 8%.
The fact is, if Dogecoin continues its rejection of big business and its embrace of community efforts, Jackson Palmer may become rich in spite of his intention.