Recently, an L1 chain called Dogechain has ignited the attention of the community.

According to its official website, Dogechain is an EVM-compatible L1 blockchain network forked from Polygon, created by Dogecoin enthusiasts and community OG members. Their vision is to bring crypto applications like NFTs, games, and DeFi to the Dogecoin community. Dogechain allows users to encapsulate their DOGE tokens into smart contracts, and then interact with projects on Dogechain, and users can use DOGE tokens to pay gas fees.

Although Dogechain has suddenly become popular recently, it is not a new project. It launched the first phase of the mainnet launch as early as January 8 this year. At this stage, users will be able to bridge their DOGE tokens to Dogechain at a 1:1 ratio and can mint Wrapped DOGE tokens. At the same time, developers will be able to deploy smart contracts to create useful applications such as decentralized exchanges, NFT marketplaces, lending protocols, and more.

The final phase of the mainnet, called "Unchained" (date TBD), will retain the functionality of the previous mainnet and switch to a proof-of-stake consensus engine. In addition, at this stage, the team will release the platform's native DC tokens, while activating additional validator incentives and pledge mechanisms. The team also said it will airdrop tokens to Robinhood users.

Currently, there are hundreds of projects such as DogeSwap, Bourbon Defi, and DogeShrek on Dogechain, over 210,000 transactions, and $70 million in DOGE token deposits. The super-high rise of some tokens has also prompted more people to FOMO in.

According to Defillama data, Dogechain's TVL has exceeded 4.5 million US dollars, a 24-hour increase of 30.93%, of which more than 97% is only locked on the Dogechain-based exchange DogeSwap.

Affected by this, the demand for DOGE tokens has also risen sharply, reflected in the secondary market, and the price of DOGE has increased by 21.9% in the past week.

However, a closer look at the community discussions shows that many people FOMO in through their token names with MEME attributes. And most tokens are trending higher in the short-term. We all know that once the FOMO emotion is over, the price is bound to drop instantly, and everyone is just betting that they are not the last one. Moreover, many netizens have complained on Twitter that some tokens with higher gains cannot be sold at all. This also brings losses to users.

In addition, although Dogechain contains the word "Doge", it has nothing to do with the Dogecoin community. Its official statement also stated: "There is only one Dogecoin and community in the world, beware of counterfeit projects." However, some members of the Dogechain community are taking advantage of this enthusiasm Drive traffic. Twitter netizen Vee discovered these false promotions and issued a risk warning: "Dogecoin is popular. They pay a lot of people to promote a bunch of tokens. By lying on paid media, they claim that Dogecoin launched this network and Trying to take your DOGE tokens to these rug pulls. They do one illegal thing after another. Stay away!"

In fact, there are countless MEME or Tugou projects developed similarly to the popularity of mainstream projects. They use the specific culture and community enthusiasm of mainstream projects to enhance the attractiveness of their projects, so as to achieve the purpose of bringing funds and liquidity to the projects. At the same time, this kind of project is easy to release, the maintenance cost is not high, FOMO is raised, the degree of community autonomy is also very large, and it does not require too much effort to maintain. However, the "golden period" of these projects is not long, and they are not a good choice for speculation, let alone an all-in choice.

Here, Odaily also reminds everyone that compared with a project currency, the development of the underlying chain requires long-term maintenance and ecological support, and requires the development and technical support of the chain and various DeFi, NFT and other protocols. Most of the project tokens currently deployed in Dogechain have speculative attributes, and there is no introduction to the project and specific use cases, nor audits and endorsements, and only rely on publicity to attract heat. Such bad coins will damage most of the characters in the ecosystem, and the risk is extremely high. Please stay vigilant and don't be deceived.