DogeCoin skyrockets as Musk says Tesla will accept it for merchandise sales

By Dhirendra Tripathi

Investing.com – Dogecoin soared 16% on Tuesday as Tesla (NASDAQ:) stock traded down 2.1% pre-market after CEO Elon Musk said the electric vehicle maker would agree cryptocurrency for goods as a test.

Dogecoin was one of the few cryptocurrencies to trade in the green today. () was down 3% and Ethereum was down 5%, amid jitters ahead of a likely tightening of monetary policy from the Federal Reserve on Wednesday.

“Tesla will make some products purchasable with Doge and see how it goes,” Musk said in a tweet. Dogecoin has so far found little practical use and has remained on the fridge, due to its popularity largely through its association with Musk. However, even that hasn’t been enough to sustain interest in Doge, which is down 74% from May, when the Musk-inspired hype was at its peak. DogeCoin started life as a joke, with its creator simply curious about how crypto assets could be established.

Musk, a digital currency enthusiast who moved away from Bitcoin due to its high energy consumption, said in May that he was working to make DogeCoin more usable.

As for Tesla, Musk’s continued sale of Tesla stock is weighing on its price. The CEO has sold about $13 billion worth of stock since November. According to a filing Monday, he sold an additional 934,091 shares of the company, worth about $906.49 million.