Remember Coinbase's Dogecoin contest last summer? If you need a refresher, last June anyone who bought $100+ in Dogecoin on the Coinbase exchange was entered to win $100, $30k, or $300k worth of Doge. This was just after the token had reached its peak, hitting an all time high of $0.73 on May 8, 2021 - a day before Doge mega-enthusiast Elon Musk hosted Saturday Night Live.
Doge is essentially back to the "pre-Musk pump" days, a little bit higher. So for the Doge bulls, it can be said that it is establishing higher lows for now & certainly well off the 2022 bottom. But I digress.
The winner of the grand prize - $300,000 worth of Dogecoin - was named, Richard B. of Florida. Lucky for him, he owed no taxes on those winnings to the state. Depending on personal circumstances, approximately 25% of that 300k would be owed for federal taxes. So, on August 16, 2021 when the prize was awarded, Dogecoin was $0.34 - the winner would have received 882,352 Dogecoins - equal to $300,000.
As of today, that would be worth $59,470. Assuming the 25% owed for federal taxes was paid out directly with a portion of the winnings, the prizes would now be worth $44,602. Now obviously, there's no way of telling what the winner did. He may have sold long ago. But talk about a currency depreciation.
What's the point really? The same can be said of pretty much any given crypto in 2022. With thousands of alt-coins flooding the market the past two years, many will not survive. Bitcoin has seen and survived massive runups and crashes. Will Dogecoin survive? What do you think?
For the record, I did buy exactly $100 worth of Dogecoin just to enter Coinbase's contest & am still holding the bag. That's all the Doge I have ever and, as of right now, plan to own.
