Dogecoin Price Shoots Up After Coinbase Announces Plan To Add Cryptocurrency
Dogecoin prices have shot up once again ahead of the digital coin being added to Coinbase in the near future.
It was announced yesterday, May 13, that Dogecoin would be added to the cryptocurrency exchange platform in a few weeks time.
Coinbase CEO Brian Armstrong made the announcement as part of the company’s Q1 earnings call, where he stated that Dogecoin will be available to exchange on Coinbase in six to eight weeks.
Explaining Coinbase’s listing process, Armstrong said, ‘Today, we use a number of factors, we look at cybersecurity around the coin to make sure that there’s not going to be an issue that would cause customer loss. We also look at it from a legal point of view and a compliance point of view,’ as CryptoNews reports.
In the wake of the announcement, the meme-inspired cryptocurrency, as of this morning, May 14, was up more than 36% in price.
According to CNBC, the coin hit a high of around $0.56 overnight; however this was still short of its record high of $0.67. However, at the time of writing, the increase had dropped to an increase of 26%, as per Coindesk.
The increase also comes after long-standing Dogecoin ambassador Elon Musk tweeted about it. The Tesla and SpaceX founder tweeted yesterday, ‘Working with Doge devs to improve system transaction efficiency. Potentially promising [sic]’.
In a separate tweet shared earlier this week, it appeared as if Musk may have been considering accepting Dogecoin as a form of payment for Tesla vehicles.
Asking his 54.5 million followers if they think the company should start accepting the digital coin with a poll, 78.2% of almost 4 million respondents voted ‘yes’.
The question came just before Musk announced that Tesla would no longer be accepting Bitcoin, which currently sits as the number one cryptocurrency.
Announcing the news, the 49-year-old said:
Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worse emissions of any fuel.
It’s believed that Bitcoin mining has a carbon footprint as big as the City of London’s, if not bigger. Bitcoin mining is the process of verifying the transactions made using the digital coin by looking at ‘records’ of money that’s made by a bank. Bitcoin then mimics this by clumping transactions together in ‘blocks’ which go on to form ‘blockchains’, something which Bitcoin miners need extremely powerful computers to do.
These computers use a lot of energy, which is what makes Bitcoin mining so harmful for the environment.
Musk later voted to allow Tesla to accept Bitcoin again ‘as soon as mining transitions to more sustainable energy’.
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