Tesla Update Payments Method To Include Dogecoin. An Inevitable Price Surge Follows?
Tesla announced that it will now accept Dogecoin, a meme-inspired cryptocurrency, as a payment method for some of its products. According to a statement on its website, eligible products will display DOGE next to the order button.
The move comes after Elon Musk, an avid fan of the token, hinted at accepting the cryptocurrency as an official form of payment for the company’s products a few years back. As per a FAQs section on Tesla’s official website, Dogecoin is now an additional payment method for some Tesla products.
20% Surge In Dogecoin
The announcement sent the price of Dogecoin soaring by over 20% in the last 24 hours, with the cryptocurrency trading at $0.16.
To purchase Tesla products using DOGE, all eligible products will display their price in the asset’s equivalent. This price tag will also include taxes.
However, the car manufacturer place certain terms and conditions when accepting such payment. One such is not accepting payments from multiple wallets for a single order; an order, once placed, cannot be canceled, and returns are not applicable for items purchased with Dogecoin.
The surge in the price of the cryptocurrency is largely due to Elon Musk’s endorsement of the cryptocurrency. During a recent event at a Tesla factory in Germany, Musk hyped up the meme-based cryptocurrency and suggested that Tesla should enable Dogecoin payments for its cars at some point in the future.
According to data from CoinGlass, the total open interest in Dogecoin futures has seen a significant increase of 26% over the past 24 hours, with an additional 9% jump in open interest recorded in just the past 4 hours. This surge in open interest indicates that many futures traders have been buying into it recently.
Moreover, the asset’s trading volume has soared by over 90% in the last 24 hours, indicating a massive interest among traders.
However, it is worth noting that Dogecoin is an exceptionally volatile asset, even when compared to other cryptocurrencies. The price of the token can fluctuate wildly within a single day, with the token reaching a peak of over $0.68 almost three years ago before plummeting below $0.10 in mid-2022.
