Bitcoin Ordinals and BRC-20 tokens are not new yet and have not been very popular in the past. Modeled after ERC-20 on Ethereum, the protocol allows participants to create fungible and non-fungible tokens on bitcoin. But, according to JAN3 CEO Samson Mow, it looks like its days are numbered; In a recent interview, he doubted its longevity, saying, “These people are basically paying huge amounts of fees that go directly to bitcoin miners, and there is no way to keep up.”
However, there is another standard that is emerging. On May 9th, the DRC-20 token was launched, and they share the same technical architecture as the BRC-20 token.
Inspired by the BRC-20 standard, Dogecoin developers appear eager to revive interest in the original meme coin this meme coin season. Following the success of $PEPE, which dusted the Shiba Inu and the most important meme coin by market cap, namely Dogecoin, activity on the Dogecoin blockchain has overtaken Litecoin for a while.
Like the BRC-20 standard, DRC-20 tokens can be minted on each indivisible unit of DOGE, called an “Elon”, with one Dogecoin containing 100,000,000 Elons. These engravings can contain arbitrary content, producing Dogecoin-specific digital artifacts that can serve as non-fungible or non-fungible tokens (NFTs) without relying on a separate token or sidechain.
The Doge Labs account tweeted, “Allow us to introduce $MOON, the first ever Dogecoin token, adhering to the official DRC-20 standard! Capped at a maximum supply of 21,000,000, it’s ready to take off!”
As a nod to bitcoin ordinals, this standard was humorously dubbed as “doginals” by Chimes, a meme project based on the new DRC-20 standard launched by Solana. Some of the upcoming meme coins that are said to be DRC-20 tokens are in Chimes, Dogevo, Misu, Pepe, and Meme.
Some Twitter users appear to be rooting for the next 100X coming out of DRC-20, but as always, investors should do their due diligence before diving into any meme coin. While crypto is a volatile place by any definition, meme coins are notorious for pumping and dumping in short bursts, leaving token holders with little or no value.
By their very nature, meme coins are often influenced by speculative trading, social media excitement and trends, rather than traditional fundamental analysis. Furthermore, meme coins often do not have an underlying asset, revenue stream or clear use case, making their forecastability difficult to assess using traditional financial criteria.