Dogecoin: Why did it spike? Why did the value rise?
Dogecoin jumped in value Friday after Tesla CEO Elon Musk said Dogecoin can be used to buy Tesla merchandise.
The news: Musk said on Twitter Friday morning that Tesla merchandise can be purchased with Dogecoin, the meme-based cryptocurrency that went viral in 2021.
What he said: “Tesla merch buyable with Dogecoin,” Musk said.
What happened: Dogecoin jumped $0.20 at around 1 a.m. EST. The coin jumped 9% by 7 a.m. on Friday morning, too.
What you can buy: Per CNBC, there are already some details about what you can buy from Tesla.
- Tesla’s Cybertruck whistle costs 300 dogecoins (so about $59).
- Tesla’s Gigafactory belt buckle costs 835 dogecoin (about $164).
Flashback: Musk has made headlines about Dogecoin by praising the cryptocurrency. He once released a poll that asked if Tesla should accept Dogecoin for people to buy Tesla products. There were more than 3.9 million votes at the time it was released, with 78.2% saying “Yes.”
Why this matters: Musk’s tweets have often led to spikes in value for Dogecoin. The meme-based cryptocurrency relies on social media hype and discussion to earn value, as I wrote for the Deseret News. Musk’s tweets are a huge part of that, as his tweets have often led to these jumps before.
- “Tweets from Musk and surging interest from a wave of amateur investors fueled a speculative frenzy in the cryptocurrency earlier this year, driving its price higher,” per CNBC.