Dogecoin Heist Another Blow to Digital Currency Movement

When you initally read about “Dogecoin”, on the surface it all sounds like one big joke.

First made popular on the news aggregation website Reddit, users would rely on Dogecoin (a term that refers to the popular “Doge” meme) to tip one another for particularly witty or funny comments on any given link or picture. However, in the past several months the currency has actually started to gain some traction, and while the price per coin is several thousand percent less valuable than its older cousin Bitcoin, there is still value to be had at high enough numbers.

dogecoin

Information on the hack slowly started to leak in after a user posted on the official Doges.org forum that his Dogewallet had been compromised. After learning about the crack, the website that hosts the wallets was temporarily shut down while engineers pored over the data to find out exactly what went wrong.

“Looks like somebody hacked and cleared my Dogewallet some minutes ago with a single transaction, I lost more than 1 million!”

At a fraction of a cent per coin, this loss only amounts to around $10,000 USD, although any amount of money stolen should be taken as a serious security concern and a landmark for the potential future of digital currency on the web.

The founders of Dogecoin have reassured anyone affected by these recent thefts that their wallets will be reimbursed, and that they are feverishly working on new security solutions which should help to bolster their reputation in the online marketplace.

Bitcoin and Dogecoin have both seen a surge in ownership over the past year, and many expect 2014 to be an even bigger year for both services as investors from China and Europe start putting their stakes into a currency that once lived in the shadows, and has just started to poke its head out into the light. 

To protect your digital wallets, check out our story on Bitcoin posted earlier this year.