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Dogecoin Investor Drags Elon Musk, Tesla, SpaceX to Court in a $258 Billion Lawsuit

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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.

 

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Dogecoin

Dogecoin (DOGE) Rides Bitcoin Surge, Gains Over 10% in 24 Hours

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The cryptocurrency market is witnessing a resurgence of risk appetite as more investors jump on unconventional choices such as Dogecoin (DOGE), Shibacoin, Memeland, etc. 

In the past 24 hours alone, DOGE has surged by over 10% to $0.10 a coin for the first time since April following Bitcoin’s climb from $38,000 to $44,000.

This surge, coupled with the rising price, validates the upward trajectory of DOGE, signaling growing investor interest.

Funding rates on various exchanges have also experienced a substantial surge, hitting an annualized 50% or more.

These rates, reflecting a steep premium in perpetual futures relative to spot prices, indicate a prevalent bullish sentiment among investors.

It underscores their collective optimism, suggesting a belief that prices are poised for further upward momentum.

Joke cryptocurrencies like DOGE have historically exhibited high-beta characteristics, closely mirroring Bitcoin’s movements but often with greater intensity.

Investors are advised to exercise caution and monitor DOGE’s potential for extreme bullish action relative to Bitcoin, serving as a potential indicator of speculative exuberance typically observed in the latter stages of a widespread bullish trend.

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Dogecoin

Elon Musk Slammed With Fresh Lawsuit by Investors, Accused of Insider Trading in Dogecoin

Tesla and Twitter CEO Elon Musk has been slammed with a fresh lawsuit by investors, accusing him of insider trading and manipulating the price of Dogecoin which cost them billions of dollars.

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Tesla and Twitter CEO Elon Musk has been slammed with a fresh lawsuit by investors, accusing him of insider trading and manipulating the price of Dogecoin which cost them billions of dollars.

In a filing on Wednesday in Manhattan federal court, Southern District of New York, U.S., investors stated that Musk engaged in a deliberate act of manipulation, which saw him pay influencers as well as other publicity stunts, with the intention to pump Dogecoin’s price at their expense.

Musk’s stunts include his public appearances, a reference to his 2021 appearance on NBC’s “Saturday Night Live” where he told viewers to invest in Dogecoin, and social media activities hyping the cryptocurrency. These stunts reportedly boosted Dogecoin’s price by 36,000% to $0.70+ in May 2021. Today, DOGE trades 90% down from that high. 

Part of the lawsuit filing reads, “Musk’s pretense that promotion of Dogecoin was just well-meaning fun, not meant to be taken seriously is not credible”.  A key part of the lawsuit is the presupposition that Dogecoin is an unregistered security under existing standards from the U.S. Securities and Exchange Commission. 

This amended complaint, which is investors’ third change since the lawsuit started last June, contains a fresh allegation that Musk sold dogecoin worth about $124 million after he switched Twitter’s logo to a Shiba Inu dog in April, that caused the token’s price to surge by 30%.

Specifically, the lawsuit claims to have tracked down a wallet address that allegedly belonged to Musk and became the largest single holder of Dogecoin by February 2021. The wallet is reported to have sold millions of dollars worth of Dogecoin at multiple times throughout April 2021.

These investors accuse Musk of deliberately driving up Dogecoin’s price to more than 36,000% over two years, and eventually letting it crash.

Meanwhile, in response to an earlier iteration of the lawsuit slammed by investors, Musk’s lawyers said his statements were too vague to be considered fraud and called the lawsuit a fantasy. “There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion,” Musk’s lawyers said at the time,

Recall that Dogecoin according to Musk was created as a joke and has no practical use case. In 2021, Musk said that his social media posts about meme cryptocurrency dogecoin are “just meant to be jokes” and his true allegiance lies elsewhere.

Musk had conceded in the Clubhouse interview that he doesn’t have a strong opinion about tokens outside of Bitcoin, the world’s dominant crypto.

Meanwhile, Investors King understands that the billionaire CEO’s favorite crypto was never clear, but had repeatedly appeared to endorse dogecoin launched in 2013 using the branding of a Shiba Inu dog from a then-popular internet meme to his millions of Twitter followers.

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Dogecoin

Crypto Whale Scoops About $38 Million Worth of Dogecoin (DOGE) in Three Days

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Apparently preparing for the upcoming rally, a crypto whale has scooped about $38 million worth of Dogecoin (DOGE) over three days this week to become one of the richest DOGE addresses in the world.

Dogecoin is a dog meme cryptocurrency backed by Tesla owner and Twitter CEO, Elon Musk. 

As of the time of writing this report, Dogecoin is worth $0.087 with a market capitalization of more than $11.5 million, ranking as the 10th largest cryptocurrency. 

Dogecoin is down nearly 5% in the past day but still up more than 5% in the past week. It’s also up roughly 22% since the start of 2023, Binance platform reveals. 

According to BitInfoCharts, the whale now has a balance of more than 709.2 million Dogecoin worth more than $60 million, making it the 20th-largest DOGE wallet in the world. 

Investors King understands that positive social media sentiment has been surrounding dogecoin since Elon Musk posted a picture of a dog as the new Twitter CEO on his Twitter page. Within minutes, the post generated a lot of reactions from crypto enthusiasts. 

Musk tweeted a picture of his pet dog sitting on the company’s CEO’s chair, with the caption: “The new CEO of Twitter is amazing. So much better than that other guy!” he added.

Meanwhile, a Dogecoin wallet that has been inactive for almost two years has recently transferred a significant amount of DOGE to a new address, amounting to 326.4 million DOGE or roughly $28 million at the time of the transfer.

This transfer has caught the attention of the crypto community, with many speculating on the potential impact on DOGE’s price.

However, it is important to note that this is not the first time a large amount of DOGE has been moved around. In fact, earlier this year, a whale transferred 36.8 billion DOGE, which was worth around $1 billion at the time. Despite this large transfer, DOGE’s price remained relatively stable.

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