Dogecoin rises 18% in value after Elon Musk announcement
The meme cryptocurrency, Dogecoin, rose in value after Musk announced that Tesla merchandise could be purchased with it.
MORE IN THIS SECTION
Billionaire Elon Musk said his company will now accept Dogecoin, which was created as a joke using a meme, for buying Tesla merchandise.
The announcement skyrocketed its value, after verifying that Doge-eligible products in the Tesla store can be purchased by sending Doge to Tesla's Dogecoin wallet.
After Musk's tweet, the cryptocurrency, which had little circulation, went from less than US$0.17 to just over US$0.20 with an increase of 11.6 % in a matter of minutes.
Tesla merch buyable with Dogecoin— Elon Musk (@elonmusk) January 14, 2022
A month ago, Tesla confirmed that it was going to start accepting Doge for merchandise purchases. The announcement resulted in a 25% increase in the price of the crypto at the time. On Friday, Jan. 14, just hours after implementing Doge payments, the coin's price posted an 18.63% gain.
It's not the first time Musk's social media or business actions have affected Doge's price.
According to the portal Cointelegraph, despite accepting payments from Doge, Tesla also clarified that it will not receive any other cryptocurrency. The company reported that it cannot receive assets in addition to Doge on its website.
Benefit or not?
People who want to buy on Tesla's website using the cryptocurrency should note that:
- Only items on which its token appears next to the 'Order' button can be purchased.
- The price in Dogecoin will include any applicable taxes.
- The buyer will be responsible for any applicable transaction fees.
- If an amount is shipped that is not the amount Tesla is asking for, the order will be canceled.
- It is not possible to return anything purchased with Dogecoin, nor cancel an order placed with the cryptocurrency.