Dogecoin (CRYPTO: DOGE) jumped nearly 30% to around 20 cents on Tuesday morning after Elon Musk said the electric carmaker would start accepting the cryptocurrency as payment for some of its merchandise.
“Tesla will make some merch buyable with Doge & see how it goes,” the Tesla and SpaceX boss said in a tweet.
Musk, who has been named Time’s 2021 Person of the Year, often tweets about the crypto market causing it to wild swing, much like he did today with DOGE.
“Fundamentally, bitcoin is not a good substitute for transactional currency,” Musk told Time magazine on Monday. “Even though it was created as a silly joke, dogecoin is better suited for transactions.”
Dogecoin reached an all time-high above $0.73 in May. The so-called “joke” coin, which was inspired by a meme of a Shiba Inu dog, has since nosedived to below 20 cents a coin. The token is down over 70% from its record high.
Musk, who’s worth nearly $300 billion, did not say what Tesla items will be available to purchase using Dogecoin. Mark Cuban is another billionaire whose Dallas Mavericks NBA team accepts DOGE for merchandise purchases.
Dogecoin was last changing hands above $0.19, up 19.74% on the day.
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