Dogecoin, which Tesla CEO Elon Musk called his “favorite cryptocurrency” in 2019, may return as a payment option on the electric car maker’s website.
Remember January 2022, when Tesla started accepting meme tokens as a payment option for some merchandise (like clothing and accessories) in its online store.
At one point, Dogecoin (DOGE) mysteriously disappeared as a payment option, prompting fans to inquire on X.com about the possibility of bringing it back.
Musk, who owns X.com and a majority stake in Tesla, appears to be interested.
“I am,” Musk wrote in response to an X user who asked if anyone would like Tesla to “bring back the option to pay with Dogecoin” for merchandise. See below.
Currently, the Tesla store only accepts credit cards as a form of payment. It’s not clear when or why Dogecoin stopped being a payment option. The Austin, Texas-based company has not widely accepted Dogecoin for car payments, and there has been no official announcement about “removing” it as a payment option.
Mask environmental defender?
Tesla’s cryptocurrency payment policy is particularly confusing, especially since Musk announced in 2021 that the company intends to “use (Bitcoin) for transactions once mining becomes more sustainable.”
see below.
Cryptocurrencies like Bitcoin and Dogecoin require large amounts of electricity to process transactions and ensure their networks remain secure.
Environmentalists and investors have pointed out that the carbon footprint associated with cryptocurrency transactions appears to conflict with Tesla’s clean energy initiatives.
It is also worth noting that Musk is a strong supporter of former President and current Republican candidate Donald Trump, who has pledged to undo Clean energy initiatives If he is re-elected.
Legal Drama
Musk’s confirmation of Dogecoin came less than 24 hours after U.S. District Judge Alvin Hellerstein dismissed a federal lawsuit filed by accused Tesla CEO is scamming investors through insider trading and Dogecoin market manipulation.
The lawsuit alleges that Musk abused his position as the world’s richest man to drive up the price of Dogecoin by more than “36,000%” and then let its price collapse, resulting in losses for investors.
Prosecutors alleged that Musk’s actions could be justified as a “Dogecoin pyramid scheme,” in which he promoted the cryptocurrency to profit from the volatility it allegedly created.
DOGE price reached an all-time high of $0.73 but has not reached those price levels again.
Hellerstein said any statements made about Dogecoin were “aspirational and exaggerated, not realistic” and that “no reasonable investor could rely on them” to make investment decisions.
The judge also found that the facts did not support the plaintiffs’ claims of a “pump and dump” scheme, market manipulation and insider trading, saying it was “not possible to understand the allegations that form the basis” of those claims.
It remains to be seen whether the dismissal of the Dogecoin lawsuit bodes well for Tesla fans to once again use the dog-themed coin as a payment option when buying, say, a Cybertruck T-shirt.
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