Elon Musk has been a passionate supporter of Dogecoin (DOGE) for several years. Tesla and SpaceX CEOs have publicly stated their support for the cryptocurrency. Because of their functions and ability to be “fun”.
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Elon Musk sued over Dogecoin
This gave Dogecoin (DOGE) a huge boost as retail investors entered the so-called memecoin. As a result, Dogecoin rose from less than $ 0.10 to an all-time high of $ 0.75 in a Musk-led deal.
Dogecoin bulls failed and retail investors suffered huge losses. According to a report from the New York Post, Musk and his companies now have consequences for their alleged involvement in Dogecoin mining.
Keith Johnson, a failed DOGE investor, has filed a lawsuit against the entrepreneur and his companies. The plaintiff alleges that Musk allegedly lured him out of his money by “operating a dogecoin crypto pyramid scheme.”
Johnson wants to “represent a class of people who have lost Dogecoin trading money” – and investors with a similar situation. A document filed with a court in New York City in Manhattan states:
“Defendants (Musk, Tesla, SpaceX) falsely and misleadingly claim that Dogecoin is a legitimate investment when it has no value.”
Tesla goods can be purchased with Doge, soon with SpaceX merch as well
– Elon Musk (@elonmusk) May 27, 2022
Johnson is seeking $ 86 billion in damages, as well as $ 172 billion in triple damages. He also wants to prevent Musk from promoting Dogecoin. The memecoin is accepted as payment for the purchase of SpaceX and Tesla products.
According to the New York Post, the plaintiff alleged the following:
“Dogecoin is not a currency, a stock or a security. It is not supported by gold, other precious metals or anything else. It cannot be eaten, grown or transported. It pays no interest or dividends. DOGE has no unique utility compared to other cryptocurrencies … It is not supported by any government or private entity. It’s just a scam to entice a ‘big fool’ to buy the coin at a higher price. ”
Musk… is cryptic
Eight months ago, Musk still seemed to be able to control the price of Dogecoin and other cryptocurrencies. That changed, however, when the high-time DOGE level was reached in 2021. The entrepreneur appeared on the popular US comedy show “Saturday Night Live”.
Subsequently, the price of DOGE declined. The memecoin has been experiencing more pain over the past few days, falling below critical support zones along with other major cryptocurrencies. In response to the slowdown in price development on the crypto markets and the increasing volatility, Musk simply wrote on Twitter:
– Elon Musk (@elonmusk) June 15, 2022
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Text credit: Bitcoinist
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