Sunday, Elon Musk tweeted that he would “continue to support” Dogecoin (DOGE) and the cryptocurrency surged by more than 20%. One of his followers suggested that Musk “keep buying it,” and Musk replied, “I am.” This suggests that Musk has been building up his meme coin holdings all along.
Just a week ago, a $258 billion class-action lawsuit was filed against Elon Musk, Tesla, and SpaceX for allegedly running a cryptocurrency pyramid scheme. Bloomberg reported on Thursday that Elon Musk had been accused of pumping dogecoin and running a racketeering scheme through his businesses to support the cryptocurrency, which he denies.
Defenders falsely and deceptively claim Dogecoin is a legitimate investment when it has zero value.” Class-action suit plaintiff Keith Johnson stated in his complaint. The World’s Richest Man, he said, was using his position to run and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement. Musk, he said.
Elon Musk’s dogecoin influence has resulted in a loss of approximately $86 billion for Keith and the represented class since 2019. A further $172 billion in triple damages was requested by Keith.
Dogecoin was created in 2013 as a parody of Bitcoin as a “meme coin.” Since then, it has grown to be one of the largest cryptocurrencies. An S&P 500 list of well-known companies had been eclipsed by the coin’s market capitalization at one point.
Even though he had been one of the most vocal proponents of Doge prior to 2019, Elon Musk finally jumped on board in 2019. On multiple occasions, Tesla CEO Elon Musk has tweeted about “mooning” the price of cryptocurrency. Changpeng Zhao “CZ” warned Tesla CEO Elon Musk against manipulating the price of cryptocurrencies because so many people rely on his investment advice.
Musk began to promote the meme coin objectively, praising it for its carbon-friendly and low transaction costs compared to cryptocurrencies like Bitcoin, perhaps taking a more cautious approach. To back up his claims, he began accepting doge payments for Tesla products and later expanded the program to include SpaceX and Starlink. Other billionaires who have publicly supported DOGE include Dallas Mavericks owner Mark Cuban.
Now, Dogecoin is trading at $0.06, having jumped following Tesla CEO Elon Musk’s recent comments about it. In spite of this, the price is still 90% below its May 2021 peak of $0.73. Currently, Doge is the tenth-largest crypto with a market cap of $8 billion.