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It’s on! Dogecoin is now available on Coinbase. And to capture the market, the exchange is launching a lottery for traders.
“We are slow. We need to add more assets. We’re making big investments to improve the speed of adding assets,” Coinbase CFO Alesia Haas acknowledged last month.
The exchange is implementing this new policy this week. Coinbase was thus picking up the pace to list Dogecoin faster than originally planned. As of Thursday, June 3, Dogecoin is therefore available on Coinbase Pro.
The popularity of the token makes it a popular crypto asset. But there is stiff competition around Dogecoin. Robinhood has thus won over many customers by being one of the first players to offer it.
To compete with this, Coinbase is using the promotional argument. The Nasdaq-listed exchange has announced a special operation with a budget of $1.2 million. It takes the form of what can be described as a lottery.
The $1.2 million in prizes are reserved exclusively for traders who trade on DOGE. This is not an airdrop, which is a free handout of chips, as is sometimes practiced.
To qualify for a batch of Dogecoins, traders must register on Coinbase and buy or sell a minimum of $100 worth of DOGE. To complete these transactions and hope to win a prize, investors have until June 6.
More than 6,000 lots of DOGE are up for grabs as a result. The top prize in the lottery will see the winner pocket $300,000 worth of tokens. Coinbase is also offering 10 participants the chance to cash in $30,000 worth of DOGE each.
Those who are not so lucky will get $100 in DOGE to pay off their original bet. With this commercial operation, Coinbase hopes to steal customers from its rivals, where DOGE transaction volumes are reaching record levels.
The lottery could be a success for the exchange. It is, however, less so at this stage when it comes to the price of Dogecoin. The crypto-asset is down just over 15% in the last 24 hours to $0.36. The Coinbase effect preceded the listing of DOGE. It has yet to kick in once it becomes effective.