- Elon Musk, the founder of Tesla and a billionaire, announced on Tuesday that the electric carmaker will welcome dogecoin, a meme-based digital currency, for merchandise.
- This year, the cryptocurrency market has experienced significant volatility, typically in response to Musk’s tweets. His opinions on dogecoin have fueled a meteoric rise in the value of the cryptocurrency this year.
- Dogecoin’s price has risen by 19.5 percent in one day since the news emerged.
Elon Musk, the self-proclaimed Dogefather, took to Twitter and boosted the Dogecoin rise once more. Tesla will begin accepting Dogecoin as payment for merchandise, Musk revealed on Twitter.
Musk tweeted, “Tesla will make some merch buyable with Doge & see how it goes.”
The most significant meme token jumped 22% in a flash, from $0.156 to $0.195.
Tesla sells apparel, belt buckles, tiny versions of its vehicles, a quad bike called the “Cyberquad” for kids, and a whistle called the “Cyberwhistle” based on its much-anticipated Cybertruck. Musk did not clarify what products might be purchased using Dogecoin, which ranges from $50 to $1,900.
Elon Musk was named Time Magazine’s Person of the Year for 2021 just a day before the announcement. Tesla CEO Elon Musk has a long and complementary relationship with the meme cryptocurrency Dogecoin. Musk said in May of this year, around the same time he reversed course on Bitcoin, that Dogecoin could “hands down” beat Bitcoin.
As per Sharat Chandra, Elon’s tweet did not astonish many.
“Elon did bat for the suitability of Dogecoin for payment transactions in the recent Time magazine interview,” said Sharat Chandra, a Blockchain and Emerging Tech Evangelist who echoed this sentiment.
“Musk’s tweet has propelled Dogecoin prices, and it has dethroned even Polkadot and Terra by market cap and may dethrone XRP,” he continued.
Tesla has previously stated that it would no longer accept bitcoin for car purchases, less than two months after it began taking the world’s largest digital currency.
Musk, a frequent Twitter user and cryptocurrency proponent, polled Twitter followers in May to see if Tesla wanted to accept Dogecoin.
At 16.35 IST on Tuesday, Dogecoin, the only token to trade with gains among the top ten names, had a market valuation of close to $26 billion, according to Coinmarketcap.
Musk isn’t just saying this for the sake of saying it. Instead, the Tesla CEO has collaborated with Dogecoin developers to make the cryptocurrency more affordable and energy-efficient than Bitcoin, the crypto industry’s main asset.
According to Dileep Seinberg, Founder & CEO of Think chain, a Blockchain, and Crypto consulting organization, Musk considers Doge as an alternative to payments because it has the potential to become an alternate means of payment due to its speed per transaction.