Dogecoin is a virtual currency that was created for fun. The Verge reports that millions of Dogecoins was stolen after the service Dogewallet was hacked. Hack may have cost owners of the currency over $13,000.
The creators at dogewallet posted the following response:
We found many reports of Dogewallet transactions being sent to ‘DQT9WcqmUyyccrxQvSrjcFCqRxt8eVBLx8′. We’re currently looking at logs and have found thousands of attempts to hack our systems.
Specifically, the attack originated from the hacker gaining access to our filesystem and modifying the send/receive page to send to a static address. We’re currently reviewing logs for information. The site is shut down right now.
We’re incredibly sorry to all users who lost funds from the attack. Please use offline wallets as online wallets are meant for new users who aren’t using them as a storage of coins. Offline wallets are more safe and secure than any online wallet due to possible attacks that can originate from anyone, anywhere.
If you were affected by this:
All invested user balances will be fully compensated first. We’ll be working on compensating as much balance as possible that wasn’t invested right after (roughly 15-30m can be compensated immediately). Send me a Reddit message with your information and address if you had an investment (not balance) on the site.
As we can see the virtual currency was instead transferred to the address DQT9WcqmUyyccrxQvSrjcFCqRxt8eVBLx8.
Today, a single Dogecoin is worth only $0.00043.
The current price of Dogecoin you can check on: http://coinmarketcap.com
What is Doge?
Doge is an Internet meme that became popular in 2013, has been given the prestigious title of Meme of The Year 2013.
The meme typically consists of a picture of a Shiba Inu dog, often with text written in Comic Sans in the foreground. The text is deliberately written in broken English, following the format of “such x”, “many x”, “very x” and “so x”. The word “wow” is often used in the meme.
Dogecoin was created by programmer and former IBM engineer Billy Markus of Portland, Oregon, who was trying to create his own cryptocurrency in hopes of reaching a broader demographic than the investors who made up Bitcoin’s economy. At the same time, his friend Jackson Palmer, a worker for a marketing department in Sydney, Australia for Adobe Systems, and the original individual who first conceived of the idea for Dogecoin, was encouraged by a student at Front Range Community College on Twitter to make the idea reality, leading Palmer to reach out to Markus. After getting several mentions on Twitter, Palmer bought the domain dogecoin.com, which was shown to Markus and quickly began the partnership between Markus and Palmer, launching the coin shortly after the development of Markus’ Dogecoin wallet was done. Within a couple of weeks of launching the currency, 6% of the total amount of 100 billion DOGE was already mined by December 17, already going over the 21 million cap placed on Bitcoin , and on December 19, Dogecoin had jumped more than 300 percent in value on, rising from $0.00026 to $0.00099 during a time when Bitcoin and many other cryptocurrencies were reeling from China’s decision to forbid Chinese banks from investing Renminbi into the Bitcoin economy. On the 22nd of December, Dogecoin experienced it’s first major crash by dropping by 80% due to large mining pools seizing opportunity in exploiting the very little computing power required at the time to mine the coin.
Markus based Dogecoin on the existing currency Litecoin, which also uses scrypt technology in its proof-of-work algorithm, meaning that miners cannot take advantage of specialized Bitcoin-mining equipment to mine at higher speeds. However, the Dogecoin network will produce 100 billion dogecoins, significantly more than the 84 million limit imposed on the Litecoin network or the 21 million on the Bitcoin network. Despite Dogecoin’s original purpose as a proof-of-concept and a play on the internet meme of the same name, there are communities dedicated to it and several minor exchanges that trade it for other established cryptocurrencies like Litecoin or Bitcoin. The currency’s popularity and value are rapidly growing; as of December 22, 2013, the baseline price was approximately 3,130 DOGE to 1 United States dollar. On December 18, the popular cryptocurrency exchange Cryptsy began accepting Dogecoin for exchange with other currencies.