Tesla CEO Elon Musk caused the price of Dogecoin to rise in price because of a simple tweet.

What did Elon Musk say about Dogecoin?

Musk said Thursday that he is working with Dogecoin, which was a potential hint that he is working with Dogecoin to make sure it could be used to buy Tesla vehicles, according to MarketWatch.

  • “Working with Doge devs to improve system transaction efficiency,” Musk tweeted. “Potentially promising.”

Per MarketWatch, the price of Dogecoin jumped 36% in the immediate aftermath of the tweet.

Why did Dogecoin drop Thursday?

Interestingly, Dogecoin dropped in value Thursday because of a similar scenario. Tesla CEO Elon Musk said Wednesday night that Tesla would no longer accept Bitcoin as a form of payment for Tesla.

  • Musk said in a tweet: “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
  • “Cryptocurrency is a good idea ... but this cannot come at great cost to the environment.”

Per CNBC, Dogecoin dropped to below $0.40 per dogecoin, which was valued at $0.70 per coin earlier in May.

Will Tesla allow Dogecoin?

That said, Musk’s announcement of Bitcoin came after Musk hinted that he might want Dogecoin to be used for purchases. As I explained for the Deseret News, Musk shared a poll that asked if his fans would use Dogecoin to buy Tesla vehicles.

More than 3.9 million votes were placed in the poll. About 78.2% of those votes said “Yes.”