Billionaire Elon Musk, who has the power to create and destroy billions of dollars worth of bitcoin and cryptocurrencies with a single tweet, helped the meme-based dogecoin rise to the crypto top 10 -currencies over the past 18 months.
However, the price of dogecoin has crashed over the past few months, losing over 90% of its value since hitting an all-time high in May last year and falling along with the price of bitcoin. , ethereum, and the broader crypto market.
Today, as bitcoin and ethereum teeter on the brink of disaster, Musk and his companies Tesla and SpaceX have been hit with a $258 billion lawsuit claiming they are part of a racketeering scheme aimed at to inflate the price of dogecoin.
Tesla and SpaceX founder Elon Musk has toned down his bullish dogecoin tweets over the past few months amid… [+] a fall in bitcoin, ethereum and cryptocurrency prices.
” [Musk, Tesla et SpaceX] falsely and misleadingly claim that dogecoin is a legitimate investment when it has no value,” wrote in the complaint Keith Johnson, described as “a US citizen who was defrauded of his money by the crypto pyramid scheme in dogecoin from the defendants”.
Mr. Johnson, who filed the lawsuit in New York, is seeking class-action status for the lawsuit and aims to represent other allegedly harmed investors. He seeks $86 billion in damages, as well as triple damages of $172 billion, and an order barring Musk, Tesla and SpaceX from promoting dogecoin.
est] simply a fraud by which ‘big fools’ are tricked into buying the coin at a higher price,” the complaint reads, before listing Musk’s multiple tweets and public statements that drove up the price of the coin. dogecoin over the past 18 months.
Musk, who was voted ‘CEO of dogecoin’ in a humorous Twitter poll in 2019 and adopted the moniker ‘The Dogefather’, has been a fan of the tongue-in-cheek rival bitcoin for years, referring to dogecoin as his favorite cryptocurrency.
Musk has previously said he personally owns dogecoin, as well as bitcoin and ethereum. At the start of 2021, Musk caused the price of bitcoin to skyrocket when he revealed that Tesla had purchased $1.5 billion worth of bitcoin.
Last year, as prices for bitcoin, ethereum, and other cryptocurrencies soared to skyrocketing heights, Musk repeatedly called on dogecoin developers to improve the cryptocurrency to “beat bitcoin high.” the hand “.
The price of dogecoin suddenly exploded in early 2021, helped higher by a gang of influencers led by…. [+] Tesla billionaire Elon Musk and making it a top 10 cryptocurrency alongside bitcoin and ethereum.
The price of dogecoin peaked ahead of Mr. Musk’s highly anticipated appearance on comedy sketch show Saturday Night Live and has since lost 93% of its value.
Since then, Mr. Musk has set up a dogecoin payment system for Tesla and SpaceX, allowing customers to purchase goods with dogecoin.
Last year, Tesla briefly began accepting bitcoins for car purchases, but Mr. Musk ended the practice two months later, citing bitcoin’s high energy requirements and carbon footprint. Musk added that Tesla will most likely start accepting bitcoin again, but that hasn’t happened yet.