After Tesla began taking dogecoin as payment for some products, the cryptocurrency’s price soared more than 15% on Friday before trimming gains.
Elon Musk, the CEO of Tesla, announced on Twitter early Friday that dogecoin can be used to buy electric carmaker’s items.
According to Coindesk data, Dogecoin reached $0.20 per coin around 01:19 ET before reducing some of its gains. At 07:06 ET, it was up more than 9% to $0.18.
The cryptocurrency, which began as a joke coin, could only purchase a limited number of products.
A Tesla Cybertruck-shaped whistle costs 300 doge, or around $59 at the time of writing. It is also, in addition, a unique belt buckle honoring Tesla’s Gigafactory in Texas sold for 835 doge ($164) on eBay.
For a long time, there have been plans to accept Dogecoin as payment. “Tesla will make some items buyable with Doge & see how it goes,” Elon Musk said in a tweet in December. Elon Musk is a prominent advocate of dogecoin, and his tweets have a significant impact on the cryptocurrency’s price.
No Returns with Dogecoin
Using dogecoin to purchase Tesla products is subject to several limitations and conditions. To send the cryptocurrency to Tesla, users will require a dogecoin wallet. Additionally, according to the company’s website, “if an order is overpaid in Dogecoin, the overpayment amount will not be reimbursed to the original method of payment.”
The Dogecoin network could take up to six hours to confirm the payment, according to Tesla.
Dogecoin orders do not allow cancellation or refund, according to the firm. Tesla products purchased through the official store using regular payment methods are usually returned within 30 days of receipt. It isn’t the first company to take bitcoin in exchange for cash. Moreover, Tesla announced last year that it had purchased $1.5 billion in bitcoin and that it would accept bitcoin payments. Later, due to environmental concerns, Musk stopped accepting bitcoin. Mining is a procedure that consumes a lot of energy on the bitcoin network. According to TRG Datacenters’ study, Dogecoin utilizes much less energy. Last year, Elon Musk stated that he will collaborate with dogecoin developers to increase transaction efficiency.
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