Dogecoin Jumps 18% After Elon Musk says it can be Used to Buy Tesla Merchandise

Meme-based cryptocurrency dogecoin jumped on Friday after Tesla (TSLA) chief Elon Musk said the electric carmaker will accept it as payment for merchandise. After Musk’s tweet, Dogecoin raced up 18% to above $0.20. His mid-December tweet saying such use of dogecoin will be allowed on a test basis sent the cryptocurrency up more than 20%.

Dogecoin Jumps 18% After Elon Musk says it can be Used to Buy Tesla Merchandise

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The company’s online store displayed prices for some items—including a whistle inspired by its highly anticipated Cybertruck model (300 DOGE), an electric quad bike for children (12020) and a belt buckle (835)—in both U.S. dollars and the popular crypto token.

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In December, Musk said Tesla would shortly be accepting dogecoin for some products and the token’s value soared nearly 20% in an hour. Musk’s social media posts are incredibly influential and have caused dramatic shifts in financial markets in the past, particularly with cryptocurrencies and assets popular with retail traders. Interest in dogecoin, one of the most volatile assets within an already volatile asset class, has tracked Musk closely, swiftly going from a joke to one of the world’s most valuable cryptocurrencies at its peak. It is currently the 11th most valuable token and has a market capitalization of over $26 billion, according to CoinGecko.

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Source: Forbes