Tesla move causes meme-inspired cryptocurrency to surge

14 Jan, 2022 08:56
The firm is testing a payment option for dogecoin, sending the token’s value skyrocketing

US electric car manufacturer Tesla has begun testing a payment option for the digital currency dogecoin a month after the company’s CEO, Elon Musk, hinted in a tweet that it would be doing so.

The option appeared on the Tesla store on Friday, and is currently related to only some of the company’s merchandise, including belt buckles, chargers, and its mini all-terrain vehicle Cyberquad for Kids, which is retailing for 12,020 dogecoin. The dog-themed token is the only accepted currency for these products.

As is his custom, Musk shared the news in a tweet.

The world’s 11th-largest cryptocurrency, with a market cap of $24 billion, dogecoin spiked on the announcement – its price was up over 13% at around $0.19, according to data tracked by CoinDesk.

Musk has been a long-running supporter. Last May, the billionaire sent a Japanese Shiba Inu-themed cryptocurrency rallying with a single tweet, saying he was working with its developers to refine the joke-inspired token.

In March, the automaker started accepting bitcoin as payment for its electric vehicles, but was forced to halt the pilot two months later due to rising concerns about the energy required in bitcoin mining.

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