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 Reacts to Elon Musk Acquisition of Twitter, Surge More Than 70% on Saturday
Dogecoin first rose by 17% on Friday before expanding an additional 70% on Saturday to bring its total gain since the deal was closed to 87%.
Following the acquisition of Twitter by Elon Musk, Dogecoin, a joke coin backed by the billionaire, first rose by 17% on Friday before expanding an additional 70% on Saturday to bring its total gain since the deal was closed to 87%.
The world’s richest man who also doubled as Tesla CEO is named Doge-Father because of his unflinching support for the coin.
Investors King understands that electric vehicle maker, Tesla is accepting Dogecoin as a means of payment for the company’s merchandise such as tires and other spare parts.
Elon Musk has been a strong advocate of cryptocurrency.
Tesla Inc. held $1.2 billion worth of bitcoin on its balance sheet before the company sold about 75 percent of its holding.
Similarly, Musk’s newly launched perfume brand “burnt hair” also accepts dogecoin in exchange for the product.
On several occasions, Musk has tweeted about dogecoin which often led to the surge of the one-time meme coin which now turned out to be one the most favourite digital asset with growing utility.
Dogecoin started as a social media joke before it elicit the interest of the world’s richest man.
On one occasion, Elon Musk hyped dogecoin by tweeting the word “People’s Crypto”.
On Saturday, dogecoin extended its weekly gain by more than 70 percent. The coin rallied to $0.134340
The digital asset surged by more than 35 percent on Monday as rumors of Elon Musk completing the acquisition of Twitter traveled wide.
Meanwhile, several sources have confirmed that ChangPeng Zhao, who is the Founder and Chief Executive Officer of the largest cryptocurrency exchange, Binance invested a sum of $500 million towards Musk’s buyout of Twitter.
This has raised a strong sentiment that the social media platform will be enormously crypto-friendly going forward.
Although Twitter in the past years has introduced some cryptocurrency features which include the opportunity to attach bitcoin address to users’ profiles.
Under the leadership of Twitter’s Co-founder and former CEO, Jack Dorsay, the microblogging platform had started ways to incorporate blockchain technology into the Twitter platform.
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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