A cryptocurrency has seen its prices soar by 123% in a single day after it launched a debit card which can be used anywhere that accepts Mastercard.
According to CoinMarketCap, which monitors trading volumes, prices and market capitalizations across the crypto industry, Groestlcoin opened Monday at $0.252275 – finishing the day at $0.562631. Over the course of the session, it reached dizzying heights of $0.749077 as news of the new product spread through the community.
Groestlcoin says that its card can be used in thousands of retailers and online stores – and also enables users to withdraw funds at Mastercard-compatible cash machines. In a tweet announcing its launch, the company said the product was developed in collaboration with PolisPay.
Users can manage their funds and check their balance through the Polis crypto wallet, which provides details about recent transactions and the ability to load funds by converting Groestlcoin into fiat.
Here to stay?
The surge saw Groestlcoin comfortably outperform Bitcoin during Monday’s trading – but questions have been raised over whether or not its debit card will be around for the long haul.
There has been a spate of incidents where crypto companies have launched debit cards backed with Visa technology, only to be told by the payment processing platform that their networks need to be shut down.
Last year, several Visa crypto debit card products which shared the same provider abruptly stopped working. However, Visa later insisted that this wasn’t a crackdown on products which converted crypto into fiat funds for use on debit cards, but rather a case involving one company which had failed to follow its policies.
Groestlcoin has stressed that its debit card offering is backed by Mastercard – but nonetheless, it is likely that the company will face stiff competition in the months ahead.
Crypto.com recently launched its MCO Visa Card, which offers rewards including free Spotify and Netflix subscriptions, cashback on all spending, and 10% discounts on travel bookings with Airbnb and Expedia. The extent of the benefits that users can access with this product depends on the amount of MCO they lock up upon acquiring the card.