The fear of Bitcoin potentially evolving to a bubble is best represented by cases such as the one with the relatively new cryptocurrency Bacoin – which has plummeted over the past month because of its interesting story.
However, the recent news has shown that the bacon-oriented cryptocurrency is all about promotion and its owner, Oscar Mayer, used this promotion to eventually transform it into a bubble. So, what happened?
Before we list what happened, it is important to understand that Bacoin (BACN) is not a cryptocurrency – but a cleverly branded promotion that uses an instant win game (or as they like to say “mining”) to give away bacon coupons whose values float based on its user engagement.
Now, what happened.
This Tuesday morning, Bacoin’s price plummeted to 14 slices, up from 5 slices just two hours before that. The token’s value plunged by 93% soon after that – which is somewhere around 1 strip of bacon where it currently sits now.
Since this is not actually a cryptocurrency, Bacoin doesn’t trade on an exchange. Rather, its value is linked to social media engagement. In the midst of going viral, Bacoin gained exposure and went up to 14 slices of value and could potentially go to 42 slices of bacon, distributed in the form of a coupon for every owner, resulting in three 1lb packs of Oscar Mayer bacon.
So, when you see it, the “bubble theory” behind Bacoin is absolutely right. However, it is nowhere near anything that could happen to a cryptocurrency – only because of the fact that Bacoin isn’t one.
Meanwhile, the promotion of Bacoin will continue until May 14th after which every user will have a week to exchange the tokens for bacon coupons.
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