Elon Musk to Keep Supporting Dogecoin
The Tesla CEO posted on Twitter earlier today: “I will keep supporting Dogecoin.” He also revealed in response to a user that he is still buying the memecoin.
As usual, DOGE reacted to the billionaire’s tweet, and the price surged by 11% from $0.052 to $0.058 despite the bearish market.
Musk’s declaration of his continued support for Dogecoin comes a few days after an American investor filed a $258 billion lawsuit against him and two of his companies, Tesla and SpaceX, for allegedly promoting DOGE and manipulating the price of the cryptocurrency.
I will keep supporting Dogecoin
— Elon Musk (@elonmusk) June 19, 2022
As reported, the plaintiff, Keith Johnson, described Dogecoin as a “crypto pyramid scheme” and alleged that Musk and his companies deliberately promoted it as a legitimate investment.
The plaintiff argued that the billionaire’s endorsement of Dogecoin led many people to invest in the cryptocurrency, which is currently down by more than 90% from its 2021 all-time high of $0.73.
Johnson is seeking $86 billion in damages from the billionaire and $172 billion for losses incurred from DOGE trades since 2019. He also wants Musk to stop promoting or endorsing the cryptocurrency.
Elon Musk: Dogecoin Rulz
Although Elon Musk wasn’t fully active in the crypto space until 2021, his first tweet about Dogecoin was in April 2019, when he shared a dog meme with the caption “Dogecoin rulz.”
In 2021, the Tesla CEO became one of crypto’s biggest influencers. Since then, when the billionaire speaks, crypto investors listen, and prices soar or plunge, depending on the bullishness of his tweets.
For instance, when Musk added Bitcoin to his Twitter bio in January 2021, the leading cryptocurrency gained 15%. Similarly, millions were wiped out of the crypto market when he announced that Tesla would stop accepting BTC payments due to environmental concerns in May of that same year.
After complaining about Bitcoin’s environmental impacts, Elon Musk became an avid supporter of Dogecoin. He started tweeting about the memecoin, and prices tend to react accordingly. Last month, the billionaire announced users could purchase Tesla merch using DOGE with SpaceX to follow soon. Dogecoin spiked 15% minutes after the announcement.