- Dink Doink launched two weeks ago as a “media token” cryptocurrency with the backing of influencer Logan Paul.
- With a springy mascot, the team plans to release a series of cartoons and a movie.
- Some are worried that those that back it could be in financial trouble.
- See more stories on Insider’s business page.
Amid a boom in discourse around cryptocurrencies, Logan Paul, one of YouTube’s biggest personalities, is promoting a new coin called Dink Doink.
The creators of Dink Doink say they want to revolutionize the cryptocurrency space with the coin and their mascot — a spring with googly eyes.
The CEO of Dink Doink Jake Broido told Insider that the goal for the self-proclaimed “media coin” is to create a character that isn’t owned by a company, but rather a community that invests in and benefits from the media created for it.
“I seriously believe I was put on this earth to knock down the barrier between entertainment and crypto,” Broido said.
The token has been the target of criticism since it launched on June 23, with multiple YouTubers creating videos calling it a “scam.”
While silly coins like dogecoin have created massive returns for some, consumer advocates and critics are skeptical of the premise.
The creators of Dink Doink want to change the world of media with memes and cartoons
The idea for Dink Doink came about after Broido, who lives with Paul, saw the massive success of dogecoin. Broido told Insider that they started “messing around” with the idea of creating a token six months ago and started working with developers four months ago.
“I was chilling with Logan and asked what’s the stupidest name we could think of for a coin,” Broido said in a June 25th interview on Steven Steele’s crypto YouTube channel. “Logan designed the character on his phone on Snapchat and the character just came alive.”
With a core team of three people, including a tech developer, a marketing lead, and the “best attorneys in crypto”, Broido brought his spring to life, he told Insider. Labeled the “first decentralized IP on the blockchain” by Broido, the plan is to keep creating cartoons and eventually a movie to create an enduring character that he says investors will benefit from.
Users that purchase Dink Doink will also receive an NFT, or a virtual image, for each cartoon released, which Broido believes will increase in value.
“Hopefully some kid in Nigeria that has three cents in Dink Doink can be sent a Logan Paul NFT worth $3,000,” Broido said.
Logan Paul’s involvement in Dink Doink remains confusing to onlookers
The first Dink Doink cartoon premiered on June 28th, featuring Broido’s vocals singing about how Dink Doink is his “favorite coin” with a “South Park” inspired art style. The clip was promoted by Paul with a tweet saying that it was the “dumbest, most ridiculous sh–coin I’ve ever seen. And that’s why I’m all in.”
—Logan Paul (@LoganPaul) June 28, 2021
After Paul’s tweet, the token skyrocketed nearly 40,000% in value, according to Crypto Slate. Over the next two weeks, after some early investors sold, the price would sharply decline by over 90%. This massive shift in value for a new coin with influencer hype isn’t rare, but Paul’s ties to the coin seem confusing to some onlookers.
“When Logan says the words ‘all in’ he’s signaling that creatively he’s all in to making this weird and funny,” Broido told Insider.
According to Broido, Paul is not “part of the official team” and is only “participating as a creative,” though he admits that the YouTuber was given “some tokens for this project when it first started.”
YouTuber Coffeezilla, who has half a million subscribers and publishes videos analyzing cryptocurrency controversies, published a video on Sunday about his issues with Dink Doink.
“He’s trying to avoid responsibility with semantics but Logan Paul knows what his viewers think when he says he is all in on the sh–coin,” Coffeezilla told Insider.
Taking inspiration from a meme coin is a risky premise
Taking inspiration from Dogecoin seems like a risky venture. Dogecoin coin blew up out of a viral ironic movement accelerated by Elon Musk and the fear of missing out. While these coins can be created easily, there’s no guarantee you’ll get your money back.
Critics have speculated that many of these coins pushed by influencers are actually “pump and dump” schemes, where those that create the coin make a large investment by promoting it to their audience to raise the price so they can quickly sell and profit.
“The vast majority of meme coins live in this vast space where their value is inherently temporary,” Coffeezilla told Insider. “When Logan Paul decides that he doesn’t want to promote Dink Doink anymore, where does the hype come from? It’s pure marketing with no fundamentals.”
Dink Doink is suffering reputationally from that association, being tied to a major influencer. The token itself also has some red flags, with the top 25 owners holding 60% of the available tokens and there being no white paper, which is a document crypto creators use to discuss their plan and technology, though Broido says it is “coming soon.”
Even with the naysayers, Broido believes that Dink Doink has a future that he is sticking to.
“We are not closing up shop, this is a long-term project that’s going to lead to a movie,” Broido said.