Dogecoin meme coin again becomes the object of market manipulations by IT entrepreneur Elon Musk. He announced that Tesla stores starts accepting DOGE as a means of payment.
“Tesla merch buyable with Dogecoin,” Musk tweeted. One can pay with the help of meme-cryptocurrency for any Tesla goods, except electric vehicles.
As Tesla later clarified, items purchased with DOGE cannot be exchanged, returned or cancelled.
After Musk’s tweet, the DOGE price traditionally moved to a sharp increase. In a couple of hours, the coin price added about 20%. At the end of the day, the price of DOGE rose by 15%.
Items that can be purchased with DOGE include Tesla-branded belt buckles (Doge 835 or about $162) and children’s all-terrain vehicles (Doge 12,020 or about $2280), which are currently sold out.
Tesla’s plans to start accepting payments in the meme-coin became known in mid-December 2021. Musk announced this decision on Twitter. According to Musk, Dogecoin has a higher potential of total transaction flow, for example, in terms of the number of transactions per day, than bitcoin. Musk clarified that bitcoin cannot replace traditional fiat currency due to its low transaction volume and high transaction fees.