Tesla founder Elon Musk regularly makes remarks that make or break cryptocurrency rallies. His latest statements on Dogecoin are no different. The Tesla CEO took to Twitter, his favorite social media platform, to announce that the company would be accepting Dogecoin as payment for Tesla merchandise.
“Tesla merch purchasable with Dogecoin,” the world’s richest man tweeted on January 14.
The company’s website already reflects the price of certain merchandise items in Dogecoin. Following his tweet, Dogecoin jumped 19% before slowly crashing.
Musk’s announcement in early 2021 that Tesla would accept Bitcoin as a payment option was one of the main factors during this Bitcoin rally that led the token to hit $64,000. His subsequent announcement later in the year that Tesla would no longer accept Bitcoin as a payment method for environmental reasons also led to the bearish rally that saw Bitcoin’s value drop to less than half at $30,000.
But since then, Musk has backed the Dogecoin token. “Dogecoin was designed as a joke to poke fun at cryptocurrencies, but fate loves irony. The most ironic outcome would be Dogecoin becoming Earth’s currency in the future,” he once explained. during a session at the Clubhouse.
But the Dogefather, as his fans call him, also made comments that saw the price of Dogecoin drop drastically. His infamous comments during a skit while appearing on SNL, in which he called Dogecoin a “hustle,” caused the price of the token to plummet immediately. While proponents of the token want Musk to take the token “over the moon”, a common phrase in the community, other crypto experts have repeatedly stated that Dogecoin’s value is purely speculative as it has very little value. underlying utility and use. But with Musk, and consequently Tesla, embracing the token, Dogecoin’s utility may experience a not-so-insignificant bump in the future.
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(Edited by : Thomas Abraham)