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Cryptocurrency depository BitGo introduced a tokenized version of dogecoin (DOGE) based on the Ethereum blockchain
The American cryptocurrency depository BitGo will release a tokenized version of dogecoin (DOGE) based on Ethereum. The company announced this on its blog.
In addition to BitGo, wDOGE was supported by the Dogecoin Foundation, BluePepper and the MyDoge wallet. With the help of the tokenized version of DOGE, users will be able to use the “meme cryptocurrency” in lending, liquidity mining, as well as voting decentralized projects in the Ethereum ecosystem, BitGo claims.
Each wDOGE will be backed by DOGE in a 1:1 ratio. The BitGo depository will be responsible for storing the collateral. According to a similar scheme, the company provides services for the circulation of tokenized bitcoin wBTC. However, the initiative still needs to be supported by large DOGE holders who would be ready to provide BitGo with their assets at a percentage of conversions.
The company did not specify what threshold is necessary for cooperation, however, they have already invited one of the main lobbyists of the Dogecoin project, the founder of SpaceX and Tesla, Elon Musk, to cooperate.
The news about the emergence of tokenized DOGE did not greatly inspire the cryptocurrency community. At the time of writing, the cryptocurrency is trading in the DOGE/USD pair at $0.13. DOGE loses almost 4% in price per day.
Meanwhile, BitGo is suing Mike Novogratz’s investment company Galaxy Digital. The reason for the conflict was the unwillingness of Galaxy Digital to buy BitGo for $1.2 billion due to the failure to submit the audit of the depository within the time frame. BitGo’s defense argues that Galaxy should be held liable for “wrongful refusal, deceit, and a clear attempt to evade its contractual obligations.” The depositary seeks damages in the amount of $100 million.
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