The price of dogecoin (Doge) soared more than 19% on Friday before retreating later after Tesla began accepting the cryptocurrency, initially created as a joke, as payment for certain branded merchandise.
Tesla billionaire CEO Elon Musk announcement development on Twitter on January 14, a month after it was first hinted that the electric car maker would try the same cryptocurrency as a payment option.
Dogecoin rose above $0.20 after the news, although it later fell back to around $0.18, according to data compiled by CoinGeckco. As of this writing, the coin is down 3.78% in 24 hours, but up 21% in the past week.
Created as an online satirical piece, the digital asset has soared 4,000% since last year, largely thanks to Elon Musk’s tweets. The billionaire loves Doge: he has described it as the “crypto of the people”. Musk also thinks dogecoin is more suitable for transactions than bitcoin.
Musk moves market prices
His tweets often move the prices of both cryptocurrencies. In March last year, Musk revealed that Tesla would start taking BTC for payment, but reversed the decision two months later citing environmental concerns.
Bitcoin rose 5% after Musk announced it as a payment option, but prices fell 12% when the plan was scrapped in May 2021.
According to Tesla’s website, customers can now choose to purchase a selection of items using dogecoins, including Tesla-branded belt buckles (835 Doge or $159) and off-road vehicles for children (12 020 Doge or $2,283), which are currently sold out.
The company says purchases are non-refundable and cannot be returned. If “an order is overpaid in dogecoin, the overpayment amount will not be refunded to the original payment method,” Tesla explains, adding that “it may take up to six hours for the Dogecoin network to confirm your payment”.
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