Dogecoin was conceived as a joke, but 11 years later the token has become popular among merchants for paying for purchases. Bloomberg examined the features of the popular meme coin.
Journalists noted that the average commission in the network costs < $ 0.01, which is ~ 79 times cheaper than in the Bitcoin blockchain. Transactions are processed in less than a minute. DOGE is suitable for money transfers, where commissions reach 7% due to intermediaries.
Dogecoin's popularity is due to its humorous nature and celebrity endorsements from the likes of Snoop Dogg and Lil Yachty, Elon Musk and Mark Cuban.
In 2021, the Dallas Mavericks last implemented DOGE payments for merchandise and tickets. So far, only 25,000 coins have been credited to the NBA team's accounts, according to Cuban. The entrepreneur called it "an inexpensive way to be part of a vibrant online community."
The co-founder of New York's Williamsburg Pizza, which accepts Dogecoin, noted its "virality," which he believes makes the cryptocurrency an effective marketing tool.
DOGE ranks fifth in the BitPay processing app, ahead of XRP and USDC, Bloomberg noted.
“Over time, Dogecoin has become less of a meme coin and more of a blank slate, without much technological risk. Compared to other cryptocurrencies, it offers a pretty solid combination of recognition, simplicity, and low cost,” said Frederick Collins, CEO and founder of Velo Data.
One of the fans of the meme coin is Elon Musk. Musk has previously actively promoted the cryptocurrency. In April 2022, he proposed reducing the cost of Twitter Blue and adding the ability to pay for a subscription in DOGE. In January, Tesla began selling merch for Dogecoin.
A few weeks ago, the businessman supported a proposal to refund Tesla products using DOGE. Earlier this year, the company eliminated this option.
Me
— Elon Musk (@elonmusk) August 30, 2024
In August, Musk and Tesla won a $258 billion class action lawsuit over their promotion of Dogecoin.
The plaintiff wanted to stop the billionaire and his organizations from promoting the coin and to have trading declared "gambling." He argued that the defendants manipulated the market and were involved in insider trading.
Recall that in August 2024, Musk beat US presidential candidate Donald Trump's offer to join his team by publishing an image of himself with the inscription D.O.G.E.
