Tesla CEO Elon Musk says he would keep supporting dogecoin
Elon Musk, the CEO of Tesla, took to Twitter this week to express that he will continue to promote Dogecoin and will continue to buy more of it. Furthermore, this comes only two days after a Dogecoin investor filed a lawsuit against him for allegedly conducting a pyramid scheme to profit from the joke cryptocurrency. Following the tweet on Sunday, June 20, Dogecoin soared over 10% from its previous high. It caused the cryptocurrency to surge to $0.056 in less than an hour, helping to compensate for the cryptocurrency’s steep drop over the previous month. It also coincided with a recovery in other cryptocurrencies, which have been struggling following significant losses.
Plaintiff Keith Johnson filed a case in federal court in Manhattan, New York, on Friday, June 17. He accused the millionaire CEO of racketeering in it, accusing him of promoting the cryptocurrency on Twitter, driving up its price only to see it sink afterward. According to reports, Johnson is seeking $86 billion in damages, claiming that the drop in the market value of Dogecoin since May of last year has caused it to quadruple in value. According to crypto news tracker Decrypt, from February 2018 to February 2019, Musk openly asserted on Twitter that he did not own any cryptocurrency other than 0.25 BTC.
Musk, on the other hand, stated on Twitter in April 2019 that Dogecoin could be his favorite cryptocurrency because it’s ‘quite cool.’ Since then, Dogecoin has gained a lot of popularity because of the billionaire’s social media endorsements and excitement. Furthermore, Decrypt documented how searches for Dogecoin dramatically increased from 2019 to 2020 around the times Musk mentioned it on Twitter. In the year 2013, the cryptocurrency was created as a prank.
Because of Musk’s involvement, it has now become one of the most popular cryptocurrencies. The Tesla CEO previously remarked that he thought the meme coin had the potential to become a currency. Following Musk’s acquisition of Twitter Inc. for $44 billion in April, the value of the cryptocurrency increased by roughly 27%. As he completes the acquisition, he primarily aims to impose more open speech regulations on the platform. However, the transaction has been beset with problems, and it was even placed on pause for a time due to concerns over spam accounts. Musk also hinted at a Twitter-Dogecoin combination in a tweet, indicating that he was working with the cryptocurrency’s staff to improve the system’s efficiency.