Everyone is familiar with Tesla CEO Elon Musk’s obsession with Dogecoin. The popular entrepreneur, who expresses his passion for this cryptocurrency on every occasion, recently changed the logo of his ownership, Twitter, to the image of a Shiba Inu dog, which is the symbol of Dogecoin. However, this move by Elon Musk could cost him dearly.
Elon Musk faces a $258 billion lawsuit
Following his posts about Dogecoin and his recent change of the Twitter logo to the Dogecoin symbol, Elon Musk is being accused of engaging in “insider trading” and manipulating the price of Dogecoin in a mass lawsuit. Investors who are concerned about this claim that Musk has the ability to reach many people easily and that his influence on people is significant. They argue that the popular entrepreneur exploits this power at the expense of other investors to profit in cryptocurrencies.
In a lawsuit filed in the Manhattan federal court, Musk is alleged to have sold approximately $124 million worth of Dogecoin in April after changing the Twitter logo to the Dogecoin logo and causing a 30% increase in the value of the cryptocurrency. It is stated that Musk’s manipulations like this have caused the value of the cryptocurrency to increase by 36,000% in the past few years. Investors who have suffered losses due to Musk’s manipulations have filed a total lawsuit worth $258 billion against the popular entrepreneur.
Musk’s lawyers have not made any statements other than that this lawsuit is a fabrication. Currently, according to Forbes’ data, the popular entrepreneur has a fortune of $203 billion. Losing this lawsuit would undoubtedly put Elon Musk in a very difficult situation.
First launched as a joke in 2013 by software engineers Billy Markus and Jackson Palmer, Dogecoin has managed to gather a loyal following over the years. Especially in the past few years, with the support of Elon Musk, Dogecoin has become the eighth-largest cryptocurrency with a market value of nearly $10 billion.
There are many cryptocurrencies like Dogecoin currently in the market, and they are vulnerable to manipulation. Therefore, we recommend being cautious when investing in cryptocurrencies. So, what are your thoughts on Elon Musk and Dogecoin? Feel free to share your opinions in the comments section.
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