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Electric vehicle (EV) giant Tesla Inc (TSLA:US, NASDAQ:TSLA) may start accepting payments in Dogecoin, or so it seems from founder Elon Musk’s recent Twitter post.
The engineer-turned-entrepreneur has started a Twitter poll asking his followers if they would “want Tesla to accept Doge?”.
Earlier on Sunday, Musk’s other venture SpaceX accepted its first-ever Dogecoin payment from Alberta-based Geometric Energy Corporation (GEC) for launching its satellite ‘DOGE-1 Mission to the Moon’.
Elon Musk & Dogecoin
While SpaceX is a privately held firm, Tesla is a public company. So, if Tesla starts receiving payments in Dogecoin, it might invite an intervention from the US Securities and Exchange Commission (SEC).
Dogecoin prices spiked by as much as 13 per cent in just 30 minutes after Elon Musk’s tweet. The Shiba Inu-symbolized crypto token is trading in the range of US$ 0.42 to nearly US$ 0.55 apiece.
Tesla recently disclosed its investment of US$ 1.5 billion in the world’s largest electronic token, Bitcoin. It also posted a C$ 101 million profit from its cryptocurrency holdings in the first quarter of 2021. Thus, it is not quite out of the blue that Tesla’s ‘Technoking’ is planning to capitalize on Dogecoin.
Musk has been tweeting about Dogecoin non-stop this year. Consequently, the token, once a penny crypto, has now overtaken Ford Motors in terms of market cap. Doge has returned almost 11,000 per cent this year.
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Wall Street Analysts’ And Crypto Purists Stand Against Doge
While Dogecoin is close to gaining mainstream acceptance, few critics have been calling it a ‘speculation bubble’. Some Wall Street analysts believe what Doge has is only rumor-based growth that cannot hold for long.
Crypto analysts, on the other hand, are worried that if Doge booms further, the whole cryptocurrency industry might seem like a joke. Few Bitcoin influencers have even tweeted asking their followers to sell Doge and buy bitcoin in its place.
Essentially, Bitcoin and Ethereum are stronger than Doge because of their strong blockchain network and wide acceptance among digital asset management firms. If Elon Musk’s electric vehicle firm accepts Dogecoin in payment, it will be an important win for the so-called ‘meme coin’.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.