Tesla CEO Elon Musk has challenged the Binance Chief Executive Changpeng “CZ” Zhao concerning the cryptocurrency’s exchange issues surrounding dogecoin withdrawal.
Elon Musk had embraced dogecoin, a meme-based coin, earlier this year and consistently tweet about the coin to his over 52 million followers at the time.
This bolstered dogecoin’s value to $0.7 a coin and pushed its market capitalisation to the top ten most valuable cryptocurrencies. The coin has now added a very impressive 6000% to its value compared to this time last year.
In early November 2021, Binance – which holds the spot as the world’s biggest cryptocurrency exchange according to volume – temporarily held off on any dogecoin withdrawals after an upgrade which led to Binance users claiming that dogecoin had been mistakenly credited to their accounts.
Elon Musk took to Twitter yet again to address CZ Zhao about the dogecoin situation, saying in his tweet that the situation “sounds shady”. Elon Musk posted this tweet in reply to a Coindesk report about Financial Times where CZ said that he’s looking to improve regulators’ views on Binance.
Musk went on to add that the doge holders who use the exchange should be secured from any errors that were not their fault.
After the upgrade glitch, Binance said all the dogecoin sent in error must be returned by the users, or else they will be unable to withdraw or use the funds on their balances. Forbes however reports that users have claimed they do not have the said dogecoin in their Binance accounts.
CZ replied Elon Musk, saying there is a certainty that the issue is with the latest doge wallet, and they have been communication with the developers. CZ went ahead to apologise for any inconveniences caused.
Elon Musk’s tweet prompted the Binance Twitter account to post a thread that explained the situation and the issue with dogecoin withdrawals. Binance has since updated a blog post, stating that it expects dogecoin withdrawals to be temporarily halted for about two weeks.
Dogecoin Investor Drags Elon Musk, Tesla, SpaceX to Court in a $258 Billion Lawsuit
Dogecoin investor Keith Johnson has dragged Elon Musk, the world’s richest man, and his two main companies, SpaceX and Tesla, to a Federal Court on Thursday for manipulating the price of the meme coin in a deliberate “crypto pyramid scheme” over Twitter.
Elon Musk, Tesla and SpaceX were sued for $258 billion, representing the decline in Dogecoin’s market value since May 2021.
Johnson, who invested in Dogecoin in 2021, filed a class-action lawsuit in the Southern District of New York for at least $86 billion in damages and wants it tripled. A class action is a type of lawsuit where one member of a group or parties represented the group or parties in court.
In the filing obtained by Investors King, Johnson accused Elon Musk, SpaceX and Tesla, Inc. of engaging in a Crypto Pyramid Scheme by way of Dogecoin cryptocurrency.
This, he said Musk did by aggressively promoting, supporting, and operating Dogecoin since 2019 despite knowing that the cryptocurrency was created as a joke without any value or significance.
He further stated that “Dogecoin is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all. You can’t eat it, grow it, or wear it. Dogecoin does not generate cash flow. It doesn’t pay interest or a dividend. It has no unique utility compared to other cryptocurrencies. It is not part of a new internet or the metaverse. It’s not based upon or tied to anything of value. It is not secured by a government or private entity. The number of coins is unlimited.”
Dogecoin was created in 2013 by co-founders, Billy Markus and Jackson Palmer. The meme coin was launched at $0.0002 a coin within two hours as Markus admitted that the coin was created as a joke and it relied 99.99% on the “greeter fool theory”.
However, Elon Musk promotion and support drove the price of the joke coin to $0.75 a coin in 2021, an event that lured mainstream and global youths with zero understanding of investment risk into the cryptocurrency space.
A lot of them reportedly bought at a higher price, expecting the joke coin to extend its bullish run. As expected, experienced investors started taking profit and eventually cashed out after Elon Musk, in a turn of event, started attacking the team behind the coin for allowing few individuals to hold over 70% of the coin.
Also, the entire cryptocurrency stopped following Elon Musk after Tesla stopped accepting Bitcoin as payment because of its energy consumption. Large number of the cryptocurrency community said the billionaire can not be trusted.
Since then the coin has been on a downward trend and presently trading at $0.05 a coin.
Dogecoin Billionaire Says Coin Approaching His Entry as He Loses Over $2 Million
Glauber Contessoto, popular known as Dogecoin Billionaire, on Monday announced Dogecoin is now approaching his entry price when he dumped $180,000 on the joke coin in 2021.
Contessoto became popular after turning a $180,000 investment in Dogecoin into $3 million in 2021. However, the millionaire refused to take profits despite the fact that the cryptocurrency space is unregulated and highly volatile.
In one of his numerous interviews, he said the memes coins are the language of millennials and repeatedly claimed he is in for the long haul.
On Monday, in a few tweets, he said whether he cashed out or not, he has shown people it was possible to become a millionaire with cryptocurrency investment. Meaning despite the value of his holding plunging from $3 million to about $300,000, Contessoto is not bothered.
I turned $180K into $3 Million. Whether or not I cashed out, I showed you it was possible. Pretty soon #Dogecoin could be back to where I bought it – this gives everyone a chance to do what I did. Don’t miss out on that opportunity.
— SlumDOGE Millionaire (@ProTheDoge) June 12, 2022
According to his interview with CNBC, Dogecoin Billionaire entered his position at about 4.5 cents. On May 8, the meme-inspired cryptocurrency, hit an all-time high of about 73 cents, and the value of Contessoto’s holdings surpassed $2 million.
After the surge, dogecoin’s price continued to fluctuate, but Contessoto remained confident in holding for the long-term — he even bought more dogecoin during the dips. Even now, he refuses to sell.
Still, Contessoto remains bullish on dogecoin, even though he isn’t currently a “dogecoin millionaire” on paper. “When I went into this dogecoin investment, I planned on being in it for at least a year,” he says. “I put in my life savings because I knew I would eventually become a millionaire.”
Now, he plans to hold the currency for much longer than a year. “Whatever happens in the short-term doesn’t matter to me because I’m looking to ‘hodl’ dogecoin for years to come. I’m truly not worried at the end of the day.”
Dogecoin Shed 2.61%, Despite Massive Support from Elon Musk
The bearish frenzy which has engulfed the global cryptocurrency market has shed 2.61% value of Dogecoin in the last 24 hours with a 23.68% drop in seven days.
Findings by Investors King show the asset is priced at $0.08693. With a market dominance of 0.91%, the top meme coin is ranked 10 on the global cryptocurrency market, according to data from Coinmarketcap.
The downward trend of the asset is also reflected in the market capitalisation of the coin which stands at $11,524,624,098.74, down 2.35%. While the 24-hour trading volume of DOGE is priced at $633,030,122.74, down 4.86%. The joke currency has hit a 24-hour low of $0.0865 and a 24-hour high of $0.09306.
Despite the huge support Dogecoin enjoys from Tesla and SpaceX CEO Elon Musk, the asset has not escaped the volatility that dominated the cryptocurrency market.
Within three weeks, the king meme coin which initially peaked at $0.1641 on April 26, tumbled to its current price of $0.08693.
However, Musk has remained bullish over the prospects of the coin despite massive sell-offs across the cryptocurrency market.
The tech billionaire posted a tweet saying Dogecoin has potential as a currency. His tweet was in response to a comment by dogecoin co-creator Billy Markus, who said that the reason he likes the meme cryptocurrency is because the asset is stupid.
Meanwhile, Dogecoin is to have more practical use cases as the Italian luxury fashion label Gucci has announced that it will begin accepting the meme coin and other cryptocurrencies as it looks to expand its presence in the crypto industry.
The fashion brand has been on a Web3 since the launch of the Gucci Vault, an online concept store representing Gucci’s presence in the Metaverse.
In another report, Dogecoin’s rival, Shiba Inu, is currently trading in the red zone at $0.000012 on the global cryptocurrency market, despite carrying out several burn transactions.
The coin has recorded a decline of 1.96% in the last 24 hours and a 27.86% drop in 7 days. Shiba Inu is 15 on the cryptocurrency market ranking with a market capitalisation of $6,659,763,704, down 2.32%, according to data from Coinmarketcap.
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