Elon Musk shows open support for Dogecoin despite a $258B lawsuit against the coin. The tech billionaire announced he will be buying more DOGE, causing an immense spike in the coin’s prices amid the crypto winter.
Dogecoin, which was once a meme coin launched as a joke, is now slowly rising in the crypto market. Initially, the coin had no specific value; however, the crypto community turned it into a valuable coin following Elon’s interest.
The CEO of Tesla and SpaceX, Elon Musk, has been quite involved in the crypto market for many years. Elon recognized the potential in Dogecoin. He began showing his support for Dogecoin and even included it as a mode of payment for Tesla.
Since then, Dogecoin has been seeing a hike in prices whenever Elon is involved with the cryptocurrency until a recent lawsuit that brought much attention to the market.
Doge investor files lawsuit against Elon
Recently, a Dogecoin investor filed a complaint against Elon Musk and his companies for promoting a pyramid scheme via DOGE. He filed a class-action lawsuit in federal court in Manhattan demanding $258B for monetary damages.
The plaintiff, Keith Johnson, also requested the court to label DOGE trading as gambling in the U.S.
The complaint said, “Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading. Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure, and amusement.”
Johnson wants Musk to pay the damages DOGE caused in the crypto market.
Elon Musk supports Dogecoin
The crypto community came out to ridicule the lawsuit as various crypto entrepreneurs talked in favor of Dogecoin.
Many believe that Dogecoin is only strong due to Elon’s support for it; however, the Dogecoin creator Billy Markus, came on to defend the coin by highlighting that the developers were focused on giving a strong utility and security to Dogecoin to ensure it maintains its position as a crypto coin in the market.
He also tweeted:
Elon Musk didn’t pay much attention to the lawsuit, but later came out and tweeted “I will keep supporting Dogecoin.”
Additionally, he announced he will be accumulating Dogecoin to show his support to the Dogecoin community, which brought a positive response to the meme coin’s position in the market.
Dogecoin prices hike in crypto winter
As the crypto winter dominates the market, Dogecoin saw a sudden increase in demand following Elon Musk’s announcement of buying more Dogecoin. Within 24 hours, the DOGE prices saw an 8% increase to $0.058 on Monday.
Before the tweet, Dogecoin had been suffering from low prices due to a bear market and the $258B lawsuit also pushed down the meme coin’s prices to $0.04972. This was bad news for almost every investor who believed in the coin’s potential due to Elon’s support for it.
The support tweet pumped Dogecoin’s price high amid the crypto winter.
Musk’s intention with Dogecoin
Musk has been promoting Dogecoin as his pet coin for a long time. He believes Dogecoin is better than Bitcoin for buying things.
In an interview with Time Magazine, Musk said, “Fundamentally, bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, dogecoin is better suited for transactions.”
So far, he has released SpaceX merchandise that could be brought through Dogecoin, he also added the coin as a mode of payment to buy in Tesla. He believes that Bitcoin is too valuable for users to spend for transactions with; instead, Dogecoin holds the transaction value because it doesn’t hold much value to users. In other words, Bitcoin can be considered gold while Dogecoin is just paper currency for everyday transactions.
Although experts see cryptocurrency as a risk to use for transactions, Elon Musk seems adamant about mainstreaming Dogecoin by buying additional assets.