THE ORIGINS OF DOGECOIN HOWA JOKE BECAME A MULTIBILLION CURRENCY MARKET Would you create an actual cryptocurrency to make fun of other cryptocurrencies? That’s exactly what Jackson Palmer and Billy Markus did, and it’s paid off with an over $70 billion currency market. Now, it’s the fourth-largest cryptocurrency in the world. Dogecoin (symbol: Ð) is a cryptocurrency that provides a payment system (like Bitcoin, another digital currency) that is instant, fun, and free from traditional banking fees. Its playful name and Shiba Inu dog mascot caused the currency to start as a meme, but as people began to actually purchase it, it became worth more and more. Before Dogecoin, Palmer was a product manager at Adobe Inc.’s office in Sydney, Australia. As a “skeptic-analytic” observer of crypto, he joked on Twitter about creating Dogecoin as a way of satirizing the hype for cryptocurrencies. Surprisingly, people were totally on board. So, he bought the domain name Dogecoin.com. That’s when Markus, a software developer at IBM, contacted Palmer. He wanted to create a digital currency but had trouble promoting his project and decided to jump on the Dogecoin buzz. He asked Palmer’s permission to build the software to create an actual Dogecoin. Most cryptocurrencies are fairly serious and sterile in presentation, but Dogecoin was always different. Palmer and Markus decided to market Dogecoin as the “fun” version of Bitcoin. Since Bitcoin had a limited supply while Dogecoin had an unlimited supply, Dogecoin was also faster and more consumer-friendly for new crypto investors. In 2015, Palmer made his departure from Dogecoin, citing the currency’s “toxic community” as a main reason why he left. Dogecoin also had its financial struggles during the 2018 cryptocurrency crash, but today, it’s grown stronger than ever. As of early May 2021, Dogecoin’s price is up more than 13,000% for the year. Even though Dogecoin’s origins are humorous, Palmer and Markus’ business decisions were no joke. If you decide to purchase Dogecoin yourself, whether as a joke or for investing, please do your due diligence to understand the risks of cryptocurrency.
Ransomware continues to be an extremely popular method with cybercriminals to extort vulnerable companies, and the pandemic has only made things worse. According to Joachim Mueller, CEO of German financial services company Allianz, “Business interruptions, pandemic and cyber, are all strongly interlinked, demonstrating the growing vulnerabilities of our highly connected world.” Essentially, an increased reliance on data and IT systems, a sudden increase in employees working remotely (and, therefore, without as much oversight), and companies continuing to drag their feet when it comes to proper cybersecurity protections for their data have all coincided to create the perfect environment for ransomware attacks. According to a 2020 report from London- based Beazley Group, ransomware attacks have gone up 130% in just the past year. This has understandably sent insurance companies reeling. With so many companies making claims to make up for the money they lost paying hacker ransoms in order to regain control of their data, cyber insurance premiums are estimated to go up 20%–50% across the board, hurting both companies that haven’t invested in cybersecurity measures and companies that have. Recently, regulators and legislators have jumped in to try and mitigate the effects that increased ransomware attacks are having on the insurance industry. The New York Department of Financial Services (NYDFS) developed a framework, recommending that cyber insurance policies require victims of ransomware attacks to notify law enforcement. Legislators are contemplating laws that would do something similar. Obviously, regulators, legislators, and cybercriminals aren’t waiting around for companies to get their cybersecurity situation under control. If your company doesn’t have adequate cybersecurity protections in place already, review your options for backing up vulnerable data you cannot afford to be ransomed or lost. Businesses just can’t wait any longer to get themselves the protection they need.
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