Dogecoin, a niche cryptocurrency that was created as a joke in 2013, saw a massive spike of over 30% on Monday. The sudden increase in value came after Twitter CEO Elon Musk replaced the blue bird on his company’s website with an image of a shiba inu, which is the digital coin’s logo. This move was quickly followed by Musk sharing a meme about the change with his 133.5 million followers on Twitter. However, the surge in value has once again raised questions about Musk’s involvement in manipulating dogecoin’s price.
It is worth noting that just a few days before this spike, attorneys for Twitter and Musk asked a federal judge to dismiss a $258 billion lawsuit filed in 2022. The lawsuit accused Musk of manipulating dogecoin’s price and driving it up by over 36,000%. The lawsuit had also named two of Musk’s companies, Tesla and the Boring Company.
Musk has been a vocal supporter of dogecoin for years, often tweeting about the token and causing volatility in its price. According to CoinMarketCap.com, dogecoin is currently the eighth-most valuable cryptocurrency, with a market cap of over $13 billion.
In the court filing requesting the dismissal of the lawsuit, Musk’s lawyers argued that his public statements about the coin were “innocuous and often silly tweets.” However, Musk’s involvement in the cryptocurrency goes beyond social media messages. This has led to concerns that his actions could be seen as market manipulation.
The recent spike in dogecoin’s value is a reminder of the volatile nature of cryptocurrencies. While they have the potential to make investors rich quickly, they are also risky investments. It is important for investors to do their due diligence and research before investing in any cryptocurrency.
In conclusion, the sudden spike in dogecoin’s value after Elon Musk’s Twitter activity has raised questions about market manipulation. While Musk’s lawyers have argued that his involvement with the coin is harmless, his actions have the potential to affect its value. As with any investment, it is important to do thorough research and exercise caution before investing in cryptocurrencies.
