Elon Musk Sued for $258 Billion For Influencing Dogecoin Price With Successive Tweets

Tesla CEO Elon Musk has been sued for $258 billion for allegedly running a pyramid scheme to support Dogecoin, a cryptocurrency that has recently acquired popularity among investors.

A Dogecoin investor who also sued Musk’s businesses Tesla and SpaceX, has filed the case. Musk is the CEO of SpaceX, too. 

Incidentally, Elon Musk had last year announced that he would take Dogecoin as payment for Tesla vehicles, which catapulted the cryptocurrency to extreme prominence. 

According to TechCrunch, a class-action lawsuit was filed in a federal court in Manhattan by a Dogecoin investor, who demanded quadruple the $86 billion in damages that the plaintiff claims Dogecoin investors have suffered since Musk began Tweeting about it.

How Musk’s Tweet Impacted Price of Dogecoin?

Dogecoin is the most popular meme coin now, but is currently trading at $0.0575, with a fall of 1.47 per cent in the last 24 hours. The price fluctuated after the Tweet by Musk. 

Earlier in March, Musk had said in a Tweet about how he will continue to hold his Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) cryptocurrency and meme coins. 

For a brief moment, this pushed the prices of these cryptocurrencies by 3-4 per cent following his Tweet. At that time, Musk had said that people were better off buying physical things like a home or a stock of a company that makes good products than investing in the dollar, since the inflation rate is so high. 

In January 2022, Musk has also said in a Tweet that he would eat a Happy Meal on TV if fast food giant McDonald’s started accepting Dogecoin. Happy Meal is one of the prominent items on the menu by McDonald's. This led to a spike of 9 per cent in the price of Dogecoin as compared to the previous day. 

In February 2021, Musk had posted a photo of the SpaceX rocket with the Moon in the background, on Twitter, and followed it up just one word “Doge”.

The price of Dogecoin then shot up ‘to the Moon’, and it surged 44 per cent after the Tweets, Market Watch reported. 

Data from Cointelegraph Markets and TradingView showed DOGE/USD rebound past $0.05 per token, edging towards new all-time highs.

Recently, Dogecoin, the cryptocurrency that billionaire Elon Musk frequently supports on social media, has seen a roughly 14 per cent increase in price as he becomes more serious about purchasing Twitter. The price of the cryptocurrency rose significantly on Monday morning this week from a low of about 12 cents, peaking at approximately 14 cents before slightly dipping again, according to CoinMarketCap.