Dogecoin's price jumped more than 15% on Friday before turning a profit after Tesla accepted the cryptocurrency as payment for some goods.
Earlier Friday, Tesla CEO Elon Musk said on Twitter that the electric carmaker's merchandise could be purchased with Dogecoin.
Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
According to data from Coindesk, Dogecoin topped $0.20 per coin at around 01:19 ET, before turning some of those gains off. It was up over 9% at $0.18 at 07:06 ET.
Only a small number of items could be bought with cryptocurrency, which originally started life as a joke coin.
A whistle the size of Tesla's Cybertruck costs 300 doges, which at the time of writing equates to about $59. A commemorative belt buckle to celebrate Tesla's Gigafactory in Texas was going for 835 Doges, or about $164
A plan to accept Dogecoin as a form of payment has been in the works for some time. In December, Musk tweeted that "Tesla will make something merchant buyable with Doge and see how it goes."
Musk is a high-profile supporter of Dogecoin and his tweets often drive up the price of the cryptocurrency.
No return with dogecoin
There are a number of terms and conditions that come with using Dogecoin to purchase merchandise from Tesla.
Users will need a Dogecoin wallet to transfer digital money to Tesla. In addition, if an order is overpaid in Dogecoin, according to the company's website, the overpaid amount will not be refunded to the original form of payment.
Tesla warned that it could take up to six hours for the Dogecoin network to confirm payments.
And the company says that any order paid in Dogecoin cannot be canceled or refunded. Generally, if a person purchases Tesla merchandise through an official store through traditional payment methods, it can be returned within 30 days of receiving the product.
This is not the first time Tesla has accepted cryptocurrency as a form of payment. Last year, Tesla bought $1.5 billion worth of bitcoin at the time and said it planned to accept purchases using the cryptocurrency. Musk later stopped accepting bitcoin due to environmental concerns. The bitcoin network uses large amounts of energy, through a process called mining.
According to analysis by TRG Datacenter, Dogecoin uses significantly less energy. Musk said last year that he would work with Dogecoin developers to improve transaction efficiency.