Elon Musk, the CEO of Twitter and Tesla, is being sued for $258 billion in a racketeering lawsuit, which alleges that Musk operated a pyramid scheme to promote Dogecoin.
In response, Musk has asked a U.S. judge to dismiss the case, arguing that “funny pictures” and “tweeting words of support” do not constitute a fraud claim.
The news of the lawsuit did not stop Dogecoin from surging by over 22% in the past hour to $0.09784 apiece after Twitter changed its icon to that of the popular meme token.
The change of Twitter’s icon to Dogecoin’s symbol is a platform-wide change, visible to Twitter’s estimated 360 million monthly active users and visitors alike.
The change appears to be the result of a conversation between Musk and the administrator of the popular r/WallStreetBets SubReddit on Twitter. The WSB chairman had suggested that Twitter change the bird logo to a doge, and Elon responded positively.
Musk’s influence on Dogecoin’s price has been noted in the past. Multiple market studies have shown that Musk’s tweets about DOGE tend to drive its price higher.
Throughout 2021, Musk promoted the cryptocurrency with slogans such as “Dogecoin is the people’s crypto,” and proclaimed himself to be the “Dogefather.” Last year, Tesla launched a new series of whistles inspired by the Cybertruck series, priced at 1,000 DOGE or $60 at the time of announcement.
While Musk’s tweets and promotional efforts may have boosted Dogecoin’s price, they have also attracted scrutiny and criticism. The recent lawsuit alleging the operation of a pyramid scheme to promote Dogecoin is just one example of this.
However, Musk’s lawyers have argued that his actions do not amount to fraud, and it remains to be seen how the lawsuit will unfold.
In the meantime, Dogecoin continues to capture attention and market value, despite its origins as a joke cryptocurrency. Its recent surge in price after Twitter’s icon change demonstrates the power of social media and the influence of high-profile individuals like Musk.
However, it also highlights the volatility and unpredictability of the cryptocurrency market, which can be subject to sudden fluctuations and rapid changes in sentiment.
Overall, the news of the lawsuit and Twitter’s icon change show that Dogecoin remains a highly visible and controversial cryptocurrency, with supporters and detractors alike. As with any investment, caution and careful consideration are advised before making any decisions.
Twitter Dogecoin
In conclusion, Elon Musk’s promotion of Dogecoin through tweets and other actions has resulted in a lawsuit alleging a pyramid scheme, which Musk’s lawyers are arguing against. Despite this controversy, Dogecoin continues to gain attention and value, as demonstrated by Twitter’s recent icon change and the cryptocurrency’s surge in price. This highlights the power of social media and high-profile individuals like Musk, but also the volatility and unpredictability of the cryptocurrency market. As with any investment, caution is advised.