Dogecoin jumped 18% in price after an announcement by Tesla CEO Elon Musk that his company would begin to accept the cryptocurrency in exchange for merchandise from the electric car company.
Musk, who had been a vocal advocate of the growing crypto market and counts Dogecoin as a favorite, made the announcement because Dogecoin requires significantly less energy, according to TRG Datacenters. He had previously axed an idea of allowing Tesla to accept Bitcoin because of environmental concerns and the high amount of energy that is required to mine that crypto.
Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
Musk announced on Twitter that Dogecoin users will be able to buy Tesla merchandise using the token. A whistle shaped like Tesla’s Cybertruck will cost $59 and a Tesla belt buckle will cost $164. Mini models of electric vehicles will also be available for purchase.
Terms and conditions do apply such as needing a Dogecoin wallet to transfer the digital currency to Tesla and if one accidentally overpays no refund will be given. Tesla also warned it may take up to six hours to process a Dogecoin transaction. Lastly, no orders can be canceled or refunded.
“Some have noted that goods for doge are selling out even faster than for dollars. This news is a good illustration of crypto’s continued penetration of corporate culture,” said Alex Kuptsikevich, senior financial analyst at FxPro.
Dogecoin originally began as a joke, but surged 4,000% in 2021 and has turned into a crypto investor’s dream token as a result. It is currently priced at $0.19.