This week, Tesla CEO Elon Musk took to Twitter saying that he would keep supporting Dogecoin and plans to keep on buying more of it. Moreover, this comes just two days following a Dogecoin investor suing him for allegedly running a pyramid scheming for profiting from the meme cryptocurrency.
On Sunday, June 20, Dogecoin jumped almost 10% off near-record following the tweet. It resulted in the cryptocurrency to spike to $0.056 in the span of an hour, aiding in the compensation for heavy decline over the last one month. Additionally, it went on to align with a rebound in other cryptocurrencies as they struggle after prominent losses.
On Friday, June 17, plaintiff Keith Johnson filed a complaint in a federal court in Manhattan, New York. In it, he accused the billionaire CEO of racketeering for touting the cryptocurrency on Twitter, driving up its price only to let it drop later. Reportedly, Johnson seeks $86 billion in damages, as he represents the decline in the market value of Dogecoin since May last year, wanting it to triple.
As stated by crypto news tracker Decrypt, Musk publicly maintained, through Twitter from February 2018 to February 2019, that he did not on a cryptocurrency other than 0.25 BTC.
Musk’s tweet from June 19, 2022:
I will keep supporting Dogecoin
— Elon Musk (@elonmusk) June 19, 2022
However, Musk took to Twitter stating how Dogecoin could be his favourite cryptocurrency as ‘its pretty cool,’ in April 2019. Since then, Dogecoin earned significant traction as the billionaire continued its endorsements and hype on social media platforms. Moreover, Decrypt further specified how searches related to Dogecoin significantly spiked from 2019 to 2020 around the instances when Musk posted about it on Twitter. The cryptocurrency was developed as a joke back in the year 2013.
In April, the value of the cryptocurrency went on to jump around 27% following Musk striking a deal worth $44 billion to acquire Twitter Inc. Mainly, he hopes to establish freer controls of speech on the site as he finally closes the deal. However, the deal has gone through a range of turmoil, even being put on temporarily hold for issues on details regarding spam accounts.
Additionally, Musk hinted at an integration between Twitter and Dogecoin in a tweet, stating he was working with the cryptocurrency’s team to enhance the efficiency of the system.