Coindesk reports that the DogeTipBot is getting a $445,000 investment, led by Australia-based Blackbird Ventures. The investment will go to improve the user experience and attract a wider audience over the next 12 months.
The announcements comes right around the time of major tipping activity in the crypto world, with some declaring November 6th as a crypto tipping holiday.
DogeTipBot allows users to express appreciation to their peers on forums like Reddit, Twitter and Twitch with dogecoins. According to founder Josh Mohland, DogeTipBot differs from other micro-transaction ideas that failed in the past because people get to use it when they want i.e. for tipping. This, as opposed to being forced to cough up a few pennies when confronted with a paywall.
Part of the development will be focused on Twitter, where there has been increased demand for the tool.
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Thus far, the service has reportedly processed 650,000 transactions, with a median value of 3 cents.
Blackbird Ventures managing director Niki Scevak explained that it is not economical to use a credit card for payments worth less than a dollar. Thus, the tool’s ability to socially express appreciation, its usefulness for micropayments and the strong Dogecoin community combine to make DogeTipBot a highly successful tool.
Mohland previously said that in three months, dogecoin tipping surpassed that of bitcoin for the past year.
For a detailed list of recent investment and M&A activity in the crypto industry, please visit the DC Magnates Crypto Deal Table.