Tesla founder Elon Musk regularly makes remarks that make or break cryptocurrency rallies. His latest statements about Dogecoin are no different. The Tesla CEO took to Twitter, his favourite social media platform, to announce that the company will be accepting Dogecoin as payment for Tesla merchandise.

“Tesla merch buyable with Dogecoin,” the world’s wealthiest man tweeted on January 14.

The company’s website is already reflecting the price of some merchandise items in Dogecoin. As a result of his tweet, Dogecoin shot up by 19 percent before slowly slumping back.

Musk’s announcement at the start of 2021 that Tesla would be accepting Bitcoin as a payment option was one of the major factors during that rally of Bitcoin which led to the token hitting $64,000. His subsequent announcement later in the year saying that Tesla would no longer accept Bitcoin as a method of payment over environmental concerns also led to the bear rally which saw Bitcoin’s value drop down to less than half at $30,000.

But since then, Musk has been supporting the Dogecoin token. "Dogecoin was made as a joke to make fun of cryptocurrencies, but fate loves irony. The most ironic outcome would be that Dogecoin becomes the currency of Earth in the future,” he had once explained during a Clubhouse session.

But the Dogefather, his fans call him that, has also made comments that have seen the price of Dogecoin fall drastically. His infamous comments at a skit during his appearance on SNL, wherein he called Dogecoin “a hustle” had led the price of the token to immediately fall. While backers of the token want Musk to take the token “to the moon”, a common phrase in the community, other crypto experts have repeatedly stated that Dogecoin’s value is purely speculative since it has very little underlying utility and use to it. But with Musk, and consequently Tesla, adopting the token, Dogecoin’s utility may see a not so insignificant bump in the future.

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(Edited by : Thomas Abraham)