DOGE Gains 12% as Tesla Accepts Memecoin for Merchandise
Dogecoin rose by 12 percent on Friday after Elon Musk announced that the memecoin can now be used to purchase products.
For some time now, rumors had been circulating. In the company’s website’s source code, software engineer Tree of Alpha uncovered a button that would allow DOGE to be utilized alongside credit cards for transactions.
The Dogecoin payment option now has a custom SVG icon and a golden doge-like background color.
Buyers will have 30 minutes to finish their purchase after pressing this button, as seen in the screenshots, before the exchange rate expires.
Additionally, a QR code is provided to verify the Dogecoin transaction goes to the correct recipient. There are two confirmations, one when the payment is initiated and another once it’s completed, with consumers being informed that their transaction may be canceled or cash lost should they be delivered to a wrong address or the wrong DOGE amount.
Tesla, of course, is taking a risk by freezing the DOGE exchange rate for 30 minutes, given how volatile the memecoin’s value has been in the past. Tweet by Tree of Alpha, Tree of Alpha’s FAQ includes the following:
“We currently only accept Dogecoin as a form of payment. Please do not send us any other cryptocurrencies than Dogecoin.”
Doge First, then Bitcoin?
As recently as October 2021, Tesla stated that it may reintroduce cryptocurrency payments for its products. A $1,900 quad bike styled after Tesla’s Cybertruck was accepted for DOGE by the company’s announcement in the middle of December.
Bitcoin Magazine published an open letter urging Elon Musk and Tesla to alter their views on BTC earlier this week, stating that the cryptocurrency “accelerates sustainable energy adoption. “
Tesla CEO Elon Musk had previously stated that the company would only open the door to Bitcoin transactions provided it could be demonstrated that at least 50% of the energy consumed by miners came from sustainable sources. In addition, the letter states:
“That Tesla is so concerned about Bitcoin’s power sources is ironic. Research shows that Bitcoin’s energy mix is already 56% renewable, compared to the typical American’s electricity consumption of roughly 20%. There are over 80 percent of Teslas charged at home, so does that indicate they should be put on hold until the electricity people use to charge them is more than 50 percent renewable? Hope not.”
DOGE is now trading at $0.1965, up 12.86% in the last 24 hours and 25.66% in the last week, at the time of this writing.
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