Elon Musk's Dogecoin Promotion To Cease Shock: Will Doge Survive

Elon Musk's Dogecoin Promotion To Cease Shock: Will Doge Survive

written by John Murphy | April 1, 2023

Elon Musk, CEO of Tesla and Dogecoin (DOGE) fan, filed a response on Friday to allegations that he is running a pyramid scheme to support the world’s largest memetic crypto. Musk’s lawyers even called the lawsuit “imaginary fiction.” 

Key Takeaways

  • Elon Musk, CEO of Tesla and fan of Dogecoin (DOGE), responded on Friday.
  • Twitter endorsements of DOGE and funny meme coin pictures are not illegal. 
  • Recent weeks have seen Dogecoin’s price remain relatively high. 
  • The lawyer asked the court to dismiss the lawsuit. 
  • DOGE has a market capitalization of $10.7 billion.

Elon Musk Denies Pyramid Scheme Claims

According to court filings, Elon Musk’s attorneys stressed that the investor did not explain how Tesla’s boss planned to defraud someone. However, tweets or statements such as “No Highs, No Lows, Only Doge” or “Dogecoin Rulz” fail to support plaintiffs’ claims. 

It was mentioned that tweets endorsing DOGE and funny pictures about the meme coin are not illegal when the token market cap is around $10 billion. The lawyer asked the court to dismiss the lawsuit. 

However, it is essential to note that the footnote filed with the court dismissed investors’ claims that they called Dogecoin security. Meanwhile, the investor’s attorney, Evan Spencer, said the plaintiffs are confident the lawsuit will be successful.  

The price of Dogecoin, Elon Musk’s favorite memetic crypto, has remained relatively high in recent weeks. DOGE needed to be more responsive to the Tesla boss’s tweet. Dogecoin has dropped 7% in 30 days. At the time of writing, it is trading at an average price of $0.071. 

DOGE has a market capitalization of approximately $10.7 billion. However, investors have accused Musk of affecting Dogecoin’s price by 36,000% over the past two years.

They’re accused of making billions in profits at the expense of other DOGE owners when Tesla bosses knew they had no intrinsic value.  

Dogecoin, the popular cryptocurrency that started as a meme, has gained a massive following over the past year thanks to various social media influencers and celebrities promoting it. Elon Musk, CEO of Tesla or SpaceX, is one of the most prominent names promoting Dogecoin.

Elon Musk's Dogecoin
Source: wccftech

If Musk does stop promoting Dogecoin, it could have a significant impact on the coin’s price. Musk’s tweets have been known to cause sudden and significant price movements in the crypto market, and his influence on Dogecoin has been no different.

If he stops promoting Dogecoin, the coin’s price could drop significantly, especially if other influencers and celebrities follow suit.

Elon Musk’s recent tweet about the environmental impact of cryptocurrencies has led to speculation that he might stop promoting Dogecoin, which could harm the coin’s price.

However, Dogecoin’s success is more than just Musk’s tweets; the coin has a solid and active community supporting it. While Musk’s influence on Dogecoin cannot be denied, it’s important not to overstate his role in the coin’s value, as a range of other factors will also determine its success in the long run.