Cryptocurrency has undoubtedly become a popular way of spending money these days. Microsoft, Paypal, and Twitch are some of the notable companies that accept cryptocurrencies as payment methods. The NBA team Dallas Mavericks has joined the list as well, however they are preparing to try something different. The owner of the team Mark Cuban has announced a promotion in the form of a cash-back reward in order to incentivise the purchases made with Dogecoin: Mavs Cryptomania1.
Details of Mavs Cryptomania
Although it is not the first time an NBA team is accepting cryptocurrencies for online purchases, Mavs Cryptomania is definitely a unique way of doing it. This promotion gives $25 worth of an e-gift card for purchases over $150 made with Dogecoin. The association is trying the promotion for a month to evaluate its performance before continuing full-time with Mavs Cryptomania. The main question that arises from this promotion is that “ Why does Mark Cuban accept mainly Dogecoin?”
Mark Cuban and his interest in Dogecoin
It is important to note that Mark Cuban was one of the leading believers in Dogecoin’s success among other celebrities, such as Elon Musk and Snoop Dog.2 His strong fan base helped the meme-inspired cryptocurrency to achieve its popularity, especially when the cryptocurrency reached an all-time high at the beginning of 2021 and made a fortune for lots of investors . Although it would be expected Mark Cuban to own a considerable amount of the coin he is promoting, the successful entrepreneur has revealed that he only owns $494 worth of Dogecoin.3 However, his Dogecoin wallet is likely to value more by the end of Mavs Cryptomania.
What is Dogecoin?
Dogecoin was created as a parody currency by Jackson Palmer and the software engineer Billy Markus in 2013 to ridicule the cryptocurrencies, but also as an attempt to gain positive attention towards crypto. One year after the launch of the cryptocurrency, a Dogecoin society (Shibes) was formed. This society is one of the main reasons why the currency reached its popularity.
Although the price of the crypto itself is not even over a dollar, one of the main characteristics that distinguish Dogecoin from other cryptocurrencies is its unlimited supply. Unlike Bitcoin or Litecoin, which have limited supplies, there is no supply limit with Dogecoin. Another advantage/disadvantage of this currency is that it is community-driven, which usually results in high volatility.4
Despite its skyrocketing value in May 2021, the cryptocurrency has followed a highly volatile trend. After reaching its all-time high of $0.740796 at the beginning of May 2021, the cryptocurrency is valued at $0.317354 at the moment (6 September 2021).
Time will tell if Mavs Cryptomania will be a successful way of promoting the meme-inspired currency. However, it is obvious that cryptocurrencies are becoming more popular every single day, and cash is becoming totally worthless. In a couple of years, some cryptocurrencies will dominate the market even more, but the question is: Will Dogecoin be one of them?
REFERENCES
(1)“Mavs Cryptomania!” DallasMavs.Shop, 1 Sept. 2021, dallasmavs.shop/pages/cryptomania.
(2) Browne, Ryan. “Tweets from Elon Musk and Other CELEBRITIES Send Dogecoin to a Record High.” CNBC, CNBC, 9 Feb. 2021, www.cnbc.com/2021/02/08/tweets-from-elon-musk-and-celebrities-send-dogecoin-to-a-record-high.html.
(3) “Mark Cuban Reveals He Owns Only $494 Worth of DOGECOIN Despite Promoting the Cryptocurrency.” Moneycontrol, MoneyControl, 16 Aug. 2021, www.moneycontrol.com/news/business/cryptocurrency/billionaire-mark-cuban-reveals-he-owns-only-494-worth-of-dogecoin-despite-promoting-the-cryptocurrency-7341551.html.
(4) S., Aaron. “Beginner’s Guide to What Is Dogecoin (+ BEST Dogecoin Wallet).” BitDegree.org Crypto Exchanges, 31 Jan. 2021, www.bitdegree.org/crypto/what-is-dogecoin#what-is-dogecoin-the-story-of-the-wow-coin.
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