Elon Musk says Tesla merchandise can be purchased using Dogecoin
The price of dogecoin jumped more than 15% on Friday before paring gains after Tesla began accepting the cryptocurrency as payment for some merchandise.
Tesla, the electric carmaker headed by billionaire Elon Musk, has started to allow people to buy brand merchandise using Dogecoin, a cryptocurrency initially started as a joke.
Mr Musk announced the development on Twitter on Friday, month after hinting of the plans.
The news sent the value of Dogecoin soaring more than 12%.
Comments by Mr Musk have frequently moved the prices of digital currencies, including Dogecoin and Bitcoin.
The move, which sent dogecoin prices 14% higher, comes a month after Mr Musk said Tesla would test out the digital token as a payment option.
Dogecoin, which was started in 2013 as a parody of the cryptocurrency craze, was once obscure.
But its value climbed about 4,000% last year, driven in part by promotion from Mr Musk.
An investor in the token, he has dubbed it the “people’s crypto” and said his space company SpaceX would accept it as payment.
During an appearance on the humour show Saturday Night Live, after getting pressed to define it, he called it “a hustle”.
It’s not the only digital coin to receive attention from the billionaire, who has a passionate online following.
Last year, Bitcoin prices jumped after Tesla said it had invested in the currency and would allow customers to buy cars with it. But the company later scrapped that idea.
Mr Musk, who also counts Bitcoin among his crypto investments, cited concerns about how much energy it takes to produce the currency.
Dogecoin is currently the only digital currency Tesla accepts.
Items eligible for purchase include Tesla-branded belt buckles (835 Doge or about $162; £118) and children’s all-terrain vehicles (12020 Doge or about $2,280; £1,670), which are currently sold out.
The purchases are non-refundable, according to the firm’s website.
No returns with dogecoin
There are a number of terms and conditions that come with using dogecoin to buy merchandise from Tesla.
Users will need a dogecoin wallet to transfer the digital money to Tesla. Furthermore, if “an order is overpaid in Dogecoin, the overpayment amount will not be refunded to the original form of payment,” according to company’s website.
Tesla warns that it can take up to six hours for the dogecoin network to confirm the payment.
And the company says that any orders paid for in dogecoin cannot be canceled or refunded. Normally, if a person buys Tesla merchandise through the official store via traditional payments methods, it can be returned within 30 days of receiving the product.
It’s not the first time Tesla has accepted a cryptocurrency as payment. Last year, Tesla bought bitcoin worth $1.5 billion at the time and said it planned to accept purchases using the cryptocurrency. Musk later stopped accepting bitcoin over environmental concerns. The bitcoin network, through a process called mining, uses large amounts of energy.