Elon Musk has been a fierce Dogecoin (DOGE) proponent for several years. The Tesla and SpaceX CEO has publicly stated his support for the cryptocurrency allegedly because of its features and capacity to be “fun”.
Related Reading | Bear Market What? Bank of America Study Shows Interest In Crypto Remains Strong
This has led Dogecoin (DOGE) to benefit from a massive surge in popularity as retail investors piled in on the so-called memecoin. This led Dogecoin to experience a rally from below $0.10 to an all-time near $0.75 as part of a Musk-led movement to push it to $1.
Dogecoin bulls failed, and retail suffered massive losses. According to a report from the New York Post, Musk and his companies could face consequences for their alleged participation in promoting Dogecoin.
Keith Johnson, a failed DOGE investor, filed a lawsuit against the entrepreneurs and his companies. The plaintiff claims that Musk allegedly defrauded out of his money by running a “Dogecoin Crypto Pyramid Scheme”.
Johnson seeks to “represent a class of people who have lost money in trading Dogecoin” and investors with a similar case. According to the document filed with the New York court in Manhattan:
Defendants (Musk, Tesla, SpaceX) falsely and deceptively claim that Dogecoin is a legitimate investment when it has no value at all.
Johnson seeks a staggering $86 billion in damages, in addition to $172 billion for triple damages, and to prevent Mr. Musk from promoting Dogecoin. The memecoin is accepted as a form of payment to purchase SpaceX and Tesla merchandise.
Tesla merch can be bought with Doge, soon SpaceX merch too
— Elon Musk (@elonmusk) May 27, 2022
According to the New York Post, the plaintiff claims the following:
Dogecoin is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all. You can’t eat it, grow it, or wear it. It doesn’t pay interest or dividend. It has no unique utility compared to other cryptocurrencies…It’s not secured by a government or private entity. It’s simply a fraud whereby ‘greater fools’ are deceived into buying the coin at a higher price.
8 months ago, Musk was able to apparently control the price of Dogecoin and other cryptocurrencies. However, things changed after the memecoin peaked in 2021 when the entrepreneur hosted the popular U.S. comedy show “Saturday Night Live”.
After that, DOGE’s price has been trending to the downside. The memecoin has seen more pain over the past few days as larger cryptocurrencies break below their critical support zones. In response to the downside price action across the crypto markets and the increasing volatility, Musk simply wrote:
Cryptonight
— Elon Musk (@elonmusk) June 15, 2022
Related Reading | Bitcoin Trading Volume Surges To Highest Since Dec 2021
At the time of writing, DOGE’s price trades at $0.05 with a 30% loss in the last 7 days and an 82% loss over the past year.
Explore the recent developments in the Indian cryptocurrency market, including the removal of major crypto exchange apps from Apple's App Store and the evolving regulatory landscape.
MiyukiUnraveling the impact of Elon Musk's X on the SEC Twitter hack: A critical look at how a lack of two-factor authentication led to a surge in Bitcoin values.
WeatherlyExplore the unexpected implications of the SEC X account hack on the approval process of Bitcoin Spot ETFs. This article delves into the interplay between cybersecurity and financial regulation, analyzing how this incident might reshape the future of cryptocurrency investment.
WeiliangDive into the captivating journey of the Spot Bitcoin ETF's approval. Explore a decade of challenges, regulatory milestones, and pivotal moments that led to this historic achievement in the crypto world.
AnaisExplore Circle Internet's landmark IPO and its impact on the crypto and financial worlds. Discover how this event symbolizes the fusion of digital currencies with traditional finance, paving the way for a new era in financial technology.
WeiliangExplore the latest developments in the complex legal and financial saga of Gemini Earn, Genesis, and DCG as of 2024, including restructuring plans, court rulings, and user reactions.
MiyukiDiscover the inside story of JPMorgan Chase's account freezes. Uncover customer experiences, bank policies, legal implications, and resolution strategies in our comprehensive analysis.
WeiliangExplore the groundbreaking launch of Magic Square's $SQR Token, backed by Binance Labs and KuCoin Labs. Discover its technological innovations, market impact, and potential to revolutionize various industries.
WeiliangExplore the intricate legal battle of Do Kwon, the former CEO of Terra Labs, as he seeks a delay in his SEC trial while awaiting extradition from Montenegro. Dive into the complexities of cryptocurrency regulation and international law in this detailed analysis.
MiyukiExplore our in-depth analysis of the recent six-year high in Bitcoin miner outflows and its implications on the crypto market ahead of the upcoming Bitcoin halving.
Miyuki