Elon Musk pumps Dogecoin amid lawsuit

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Doge­coin (DOGE) has gained 11% since bil­lion­aire Elon Musk said that he would con­tin­ue to sup­port and buy the cryptocurrency.

See relat­ed arti­cle: Bit­coin, cryp­to return to red after rate hike ral­ly wears off

Fast facts

  • Accord­ing to Coin­Mar­ket­Cap data, the meme­coin was up more than 12% in the past 24 hours to US$0.05788 on Monday.
  • Doge­coin had dropped to as low as US$0.04972 in the past sev­en days fol­low­ing a broad­er bear mar­ket in cryp­to and a law­suit against Musk. 
  • Musk’s state­ment comes days after a com­plaint seek­ing a class action law­suit against the CEO of Tes­la and SpaceX was filed alleg­ing manip­u­la­tion in the price of Doge­coin. The two com­pa­nies and Musk have been named as defendants.
  • The com­plaint seeks US$86 bil­lion in com­pen­sato­ry dam­ages and US$172 bil­lion in tre­ble dam­ages from Musk and Tes­la and SpaceX, alleg­ing they are engaged in a “Cryp­to Pyra­mid Scheme” by inflat­ing the price of some­thing with no fun­da­men­tal value. 
  • The law­suit claims Musk’s pub­lic state­ments have a direct effect on DOGE and that for three years, he “engaged in and prof­it­ed from the manip­u­la­tion of the price of Bitcoin.”
  • Musk has been an influ­en­tial advo­cate of Doge­coin since 2019, when he began tweet­ing about the meme-based dig­i­tal tokens, lat­er allow­ing the tokens to be used to pur­chase Tes­la mer­chan­dise, which did cor­re­late with a price surge. 
  • How­ev­er, the rela­tion­ship hasn’t been all bull mar­kets and growth — Musk jok­ing­ly called the coin a “hus­tle” in a skit for the show Sat­ur­day Night Alive in May 2021, trig­ger­ing a 40% crash
  • Musk had been silent about Doge­coin on Twit­ter recent­ly, but his join­ing of the Twit­ter board in April also cor­re­lat­ed with a ral­ly in DOGE prices, with Musk offer­ing to buy the entire social media company. 

See relat­ed arti­cle: Shi­ba Inu, Doge­coin pay­ments accept­ed by Porsche Bal­ti­more dealership



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