Today, investors in Coinbase (NASDAQ:COIN) are seeing a green day. For everyone’s favorite Shiba Inu-inspired meme currency, Dogecoin (CCC:DOGE-USD), not so much. However, any green day is a good day for investors in COIN stock, given the recent ride Coinbase has been on. One might be curious as to the primary reason for today’s move. Perhaps part of the answer is the recently launched Coinbase Dogecoin Sweepstakes.
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Most investors know how popular Dogecoin has become of late. Whether due to the incessant tweeting of Elon Musk, or simply the momentum of this moonshot cryptocurrency, Dogecoin is still ranked No. 6 among all cryptocurrencies in market capitalization. That’s right, a meme cryptocurrency with no real utility is valued at nearly $50 billion.
There are a variety of reasons for this. However, most investors know just how catchy the simplistic marketing behind this digital coin has been. Today’s recent moves reflect yet another marketing stunt from Dogecoin and its purveyors.
Whether this maneuver ultimately pays off for investors remains to be seen. However, news of the Coinbase Dogecoin sweepstakes certainly has the DOGE crowd barking.
What Is the Coinbase Dogecoin Sweepstakes All About?
Last week, Coinbase announced the launch of a Dogecoin giveaway. This sweepstakes is in honor of Dogecoin’s recent listing on Coinbase Pro. Indeed, that’s news in and of itself. But when an exchange like Coinbase offers $1.2 million in prizes to celebrate such an announcement, crypto investors perk up.
What’s the catch?
Well, crypto investors simply need to opt in to the sweepstakes and buy or sell $100 in DOGE on Coinbase by June 10. That’s it.
Each crypto investor gets one entry per person. One winner will receive $300,000 in DOGE, 10 winners will received $30,000 in DOGE, and 6,000 winners will receive $100 in DOGE.
The simplicity of this sweepstakes makes this a no-brainer for most investors to get in on the action. For those bullish on DOGE, adding an additional $100 in exposure sure seems like a good idea, given the recent dip in Dogecoin prices. For those bearish on DOGE, selling $100 worth of this digital token still provides an entry. There’s really no downside to entering, for those interested.
Of course, Coinbase’s business model is one which is fee-based. The more volume Coinbase can generate, the more money this platform stands to earn. Those behind this marketing stunt have undoubtedly done the math. However, if it proves successful, this could pave the way for future giveaways in an attempt to rekindle retail investor enthusiasm in this sector.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.