Dogecoin In Focus as Musk Asks Whether Tesla Should Accept It

Dogecoin reverses earlier gains after Elon Musk asks his 53.9 million followers in a tweet whether Tesla should accept the cryptocurrency as a form of payment.
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Dogecoin jumped for a second day on Tuesday and then quickly receded after billionaire Tesla  (TSLA) - Get Report co-founder Elon Musk asked his 53.9 million Twitter followers whether Tesla should accept the cryptocurrency originally meant as a joke as a form of payment.

Musk, who’s been a vocal supporter of the Shiba Inu-themed token, posted a survey on Twitter asking, “Do you want Tesla to accept Doge?” At last check, the survey had 1.36 million respondents, with almost 80% voting yes.

The token jumped from around 46 cents to as high as 54 cents after Musk’s tweet, according to Coinmarketcap.com. At last check, it was down 2.78% at 49 cents. 

Dogecoin slumped over the weekend after the Musk jokingly called the cryptocurrency a "hustle" during one of his skits on “Saturday Night Live.” It recovered its losses and then some on Monday amid renewed optimism that it could be used as a method of payment.

Calgary-based Geometric Energy on Monday said it had paid Musk’s SpaceX in Dogecoin to launch a mini-satellite as part of a Moon voyage SpaceX is planning in 2022.

While Dogecoin continues to be viewed as a joke, serious cryptocurrency investors who've bet on ethereum continue to laugh all the way to the bank. The price of ether, the digital token on the ethereum blockchain, breached $4,000 on Monday, a new record high.

The digital token gave back some of those gains on Tuesday. At last check it was down 1.28% at $4,048.38, according to Coinmarketcap. Ether now has a total market value of $476.3 billion, just under half of bitcoin’s $1.1 trillion market value.