Over the past two months, dogecoin, a cryptocurrency akin to bitcoin but is inflationary rather than deflationary, has grown in immense popularity. It has helped Olympic athletes achieve their dreams by competing in the 2014 Sochi Winter Olympic Games, while holding fundraisers to reimburse those who were affected by December’s cyber heist.
The technology behind dogecoin isn’t necessarily different than any other competitor’s, but venture capitalists want to cash in on the meme-based digital currency. In an interview with Techly, Jackson Palmer, the virtual currency’s creator, says he has rejected investment proposals from at least two venture capital firms.
Palmer explained that he has discussions with one investment firm in the United States and another one in his native Australia. The reason he has dismissed the proposals is because he believes dogecoin should be an alternative currency left to a grassroots community rather than the business environment.
“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,” explained Palmer. “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.”
He further explained that the past community-based projects is what has driven companies to invest in dogecoin. “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. I don’t want anything more. I could leave tomorrow but the fact is I’ll be happy for the rest of my life. It’s all I want.”
Palmer and his fellow developers have long made the case that they don’t want dogecoin to turn out like a bitcoin, a speculative asset. Instead, they want dogecoin to be a long-term viable usable digital currency, which is something they believe bitcoin can’t be.
One dogecoin is currently valued at less than a penny.
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