Dogcoin jumped more than 34% on Friday after Tesla CEO Elon Musk tweeted about the cryptocurrency – calling it “potentially promising”.
The tweet about Dogcoin comes after Musk announced on Wednesday that Tesla would no longer accept Bitcoin as a payment for its electric cars over concerns about the use of fossil fuels for bitcoin mining.
Musk said at the time that the company was looking at other cryptos that consume less energy per transaction.
“Working with Doge developers to improve system transaction efficiency. Potentially promising,” Musk tweeted Thursday evening.
The tweet speculated that Tesla might one day accept Dogecoin as payment for its cars. The carmaker made headlines in the crypto market after its announcement in February and said it had bought $ 1.5 billion worth of bitcoins and would accept that digital currency as payment.
When Musk said earlier this week that the company would stop its acceptance of bitcoin, it sent the price of cyber security plummeting with the wider crypto market.
He announced the surprise with another tweet saying, “To be clear, I strongly believe in crypto, but it may not lead to a huge increase in fossil fuel use, especially coal.”
The serial entrepreneur was met with widespread criticism following the move, which was seen as a U-turn as Musk has long avoided cryptocurrency and bitcoin in particular. The environmental toll of bitcoin mining and other cryptocurrencies has been well documented for years, raising questions about why Musk worked on it recently.
And Musk’s Thursday tweet about Dogcoin came after his eye-boggling statement on “Saturday Night Live” when he called the digital coin a “hustle” that caused a sharp drop in price.
In addition to promoting Dogcoin, there are comments that have emerged on the crypto exchange Coinbase’s first-quarter earnings call. The company said Thursday evening that it planned to list Dogcoin over the next six to eight weeks.
According to Coinbase, Dogcoin is the fourth largest cryptocurrency by market cap. Following Musk’s Thursday evening tweet, the coin added more than $ 10 billion to its market cap, now about $ 68 billion.
Anthony Denier, CEO of trading platform Weibull, said that Musk’s ability to command market movements in the crypto space is evidence of a bubble.
However, he also said that the growing acceptance of bitcoin on Wall Street is also evidence that crypto is here to stay – while environmental concerns over bitcoin are legitimate and other cryptocurrencies have found ways to reduce their impact .
Denier said in an email to The Post, “Based on the environmental impact of bitcoin, it should serve as a wakeup call for others using and accepting the currency, as more people taking the same view Can be. “
“However, other cryptocurrencies have found more efficient ways to mine their coins, therefore, this may change the way bitcoin is produced, which can be a net positive.”
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