Elon Musk says he will continue buying Dogecoin after being sued over Dogecoin’s alleged ‘pyramid scheme’ for $258 billion | tech news

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Dogecoin surged on Sunday after Tesla CEO Elon Musk said he would still buy the meme coin. Musk’s comment was enough to send Dogecoin up 8% to $0.058. However, the 5.8 cents is a far cry from a 91% drop from Dogecoin’s all-time record of 72 cents touched in May 2021.

In a tweet today, Musk said he will continue to support the meme coin. “I will continue to support Dogecoin,” Musk tweeted.

When asked if he would continue to buy DOGE, Musk replied, “I am.”

Musk’s supportive tweet, predictably giving Dogecoin the price boost it needs, came just a week after he and his companies were sued over an alleged Dogecoin pyramid scheme. Musk was sued Thursday for $258 billion by a Dogecoin investor who accused the billionaire of operating a Ponzi scheme to support the cryptocurrency, Reuters reported.

In a lawsuit filed in Manhattan federal court, plaintiff Keith Johnson accused Musk, his electric car company Tesla Inc (TSLA.O) and space company SpaceX of racketeering for touting Dogecoin and inflating its price only only to drop the price. It’s unclear if the lawsuit prompted Musk to make the latest comment regarding his support for Dogecoin.

“Defendants have been aware since 2019 that Dogecoin had no value but promoted Dogecoin to profit from its trading,” the complaint reads. “Musk used his pedestal as the richest man alive to operate and manipulate the Dogecoin pyramid scheme for profit, exposure and entertainment.”

Dogecoin started as a hoax in December 2013, based on the popular “Doge” meme, which is represented by a Shiba Inu dog as the logo, which literally comes from the “Doge” meme.

We wrote about Musk and Dogecoin back in January, after Musk continued his relentless promotion of Dogecoin, saying that if McDonald’s accepted Dogecoin as payment, he would have a Happy Meal on TV. “I’ll have a Happy Meal on TV if @McDonalds accepts Dogecoin,” Musk tweeted. Mcdonald’s has yet to meet this challenge.

Musk has been promoting Dogecoin for months. Musk dubbed it People’s Coin and once told TMZ in an interview that Dogecoin could be the future of cryptocurrency. He also cautioned crypto investors, saying, “Don’t take too much risk with cryptos.”

“First of all, I think people shouldn’t invest their life savings in cryptocurrency. To be clear, I think that’s unwise. But if you want to speculate and maybe have some fun, there’s a good chance crypto is Earth’s future currency. And then it is, which one will it be? Maybe there will be several. But it should be considered speculation at this point. So don’t go too far with the crypto speculation part,” Musk said while signing autographs.

Some on social media went so far as to call Musk “The DogeFather,” a nod to the GodFather film.


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