It is now understood that the Dogecoin community has been the target of a widespread scam involving key figures like The Dogecoin Foundation, Own The Doge (OTD), and several individuals. The scandal centers around a misleading campaign for a Doge statue, which many believed was an official Dogecoin initiative.
Preamble: Clarifying the Distinction Between Dogecoin and Own The Doge
Before delving into this article, it's imperative to establish a clear understanding of the distinction between Dogecoin and Own The Doge (OTD).
Despite any perceived similarities in name or branding, the two entities are entirely separate and unrelated.
Dogecoin:
Dogecoin, founded in 2013, is a decentralized cryptocurrency based on the popular "Doge" internet meme. Created as a lighthearted and community-driven project, Dogecoin quickly gained popularity for its welcoming community, low transaction fees, and fast transaction times. It operates on its own blockchain and is widely recognized and traded in various cryptocurrency exchanges.
Own The Doge (OTD):
On the other hand, Own The Doge (OTD) is a separate entity that emerged in 2021 with its own agenda and initiatives. It does not have its own blockchain and it is not related in any way to the Dogecoin protocol and blockchain. It is a non native asset, $Dog token, an ERC-20 token spawned from the ethereum network. While OTD may have adopted elements of Dogecoin's branding, including the "Doge" name, it is not affiliated with the original Dogecoin project. OTD has pursued its own ventures, including promotional campaigns, events, and projects totally unrelated to Dogecoin's core development or community initiatives.
Key Differences:
1. Ownership and Governance:
Dogecoin is a decentralized cryptocurrency, meaning it is not owned or controlled by any single entity. Its development and direction are guided by community consensus and contributions from developers worldwide. On the contrary, OTD is an organization with its own leadership, agenda, and governance structure. It is associated and majoritarily owned by PleasrDao. And for PleasrDao, they are owned by a handful of venture capital firms. Light years away from being anything remotely close to something decentralized.
2. Mission and Objectives: Dogecoin's mission centers around creating a fun, inclusive, and accessible digital currency for everyday use and charitable endeavors. OTD, while it may share some community values with Dogecoin, pursues its own goals and projects independent of Dogecoin's development or community initiatives.
3. Community Engagement:
Dogecoin boasts a vibrant and diverse community of users, developers, and enthusiasts who contribute to its growth and adoption worldwide. While OTD may interact with the Dogecoin community and leverage its popularity, it does not represent or speak for the broader Dogecoin community as a whole.
It is important to understand these distinctions and avoid conflating the actions of individual actors or organizations with the broader Dogecoin ecosystem.
A Promising Beginning
The controversy began when the Dogecoin Foundation rallied the community to support a project to erect a Doge statue. The foundation assured supporters they were indeed kickstarting this initiative, that the project had their backing and that it was aligned with the Dogecoin ethos. Encouraged by these assertions, community members donated thousands of dollars' worth of Dogecoin (Ðoge) to fund the statue.
Below we can see a self appointed Dogecoin Foundation board member, Jens Wiechers, asking the community for more donations.
Before they even had any official authorization from the Sakura city in 2023, they had already received huge amounts of donations in 2022.
Although the exact amount is not known, it was said they had received over $100K (one hundred thousand) usd worth of donations.
It's important to add how fast their goal was met but they kept on asking for more and more donations.
The Initial Deception
In late 2022, doubts emerged about the project's legitimacy. When questioned, a Dogecoin foundation collaborator claimed they had secured authorization from the city for the statue. However, no evidence was provided to substantiate these claims.
Instead, those who sought clarity were privately contacted by an OTD collaborator, who confessed that no such authorization existed.
Even after a few months, in March 2023 when doing a follow up with the same Own The Doge collaborator, still no authorization
Continuing Deceit
Despite repeated inquiries into the project's legitimacy, the Dogecoin Foundation and their collaborators continued to assure the community that the necessary permissions were in place. It wasn't until later in 2023, after direct intervention and payments to the city in Japan, that the statue was installed and inaugurated. But the unveiling revealed a shocking truth: the statue bore no connection to Dogecoin. Instead, it prominently featured the branding of Own The Doge, leading to widespread disillusionment among supporters.
The Real Agenda
The real motive behind the statue project became clear: it was an Own The Doge initiative, not a Dogecoin endeavor despite the initial confirmation from the Dogecoin Foundation. The misleading campaign exploited the goodwill and generosity of the Dogecoin community, using their donations to fund a project that ultimately served OTD's interests. The Doge Foundation, alongside OTD and their collaborators, leveraged the community's trust to extort thousands of dollars' worth of Dogecoin (Ðoge). The statue would give legitimacy to their token, $Dog, which the name copies the well known and famous Dogecoin (Doge) cryptocurrency. Own The Doge and many of their collaborators have been falsely claiming it to be equivalent to Dogecoin. For example saying ‘‘$dog is doge’’, which is purposely misleading and especially for new members of the community.
This criminal enterprise wouldn't have succeeded without the help of a well established network of bad actors within the doge community.
Who are these bad actors and how they operate within the doge community.
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See the follow-up article below for a more in depth analysis of this issue
Legal Implications
Soliciting donations under the false pretense that they are for a Dogecoin project, when you have no intention of using the funds for that purpose, would constitute intentional deception. This is a fraudulent act and can be prosecuted under various laws, both at the federal and state levels in the United States.
For example, Consumer Protection Laws: The Federal Trade Commission (FTC) enforces laws against deceptive practices, including fraudulent solicitations.
Furthermore, if multiple organizations collaborate in an elaborate scheme to solicit fraudulent donations under the guise of a Dogecoin project, the RICO act could be applied.
The Racketeer Influenced and Corrupt Organizations (RICO) Act (18 U.S.C. §§ 1961-1968) is designed to combat organized crime. It allows for the prosecution of individuals or groups involved in a pattern of racketeering activity.
Racketeering activities include a range of criminal acts such as fraud, bribery, money laundering, and embezzlement.
If multiple organizations collaborate in an elaborate scheme to solicit fraudulent donations, the organizations would be viewed as part of an "enterprise" under RICO.
Thus, making the criminal organizations involved a criminal enterprise.
Silencing the Critics
Throughout this period, individuals who questioned the project's transparency faced severe backlash. Coordinated efforts by the foundation and its collaborators sought to silence dissenters through public and private attacks, ensuring the deceitful campaign continued unchallenged.
A Call to Action
The betrayal reached its peak when Own The Doge claimed to have acquired rights to the Doge image, further solidifying their control over the project. As more community members began to voice their concerns, they were met with evasive responses and a lack of clear communication.
The situation has prompted some members to file an official report with the Federal Trade Commission (FTC). They urge others who feel defrauded to do the same, aiming to hold The Doge Foundation, OTD, and their collaborators accountable for their actions.
Conclusion
The Dogecoin community now faces a sobering reality. The "do only good every day" motto has been twisted to mask a calculated and deceptive scheme. This elaborate con has exploited the community's trust, diverting their contributions through lies and manipulation in a fraudulent way, thus undermining the very principles upon which the Dogecoin movement was built. As more people in the community start to realize they have been conned, the hope remains that transparency and integrity will once again prevail in the world of Dogecoin.