Elon Musk’s Tweets Propel Dogecoin’s Valuation, but Legal Troubles Loom
- Shams Ul Zoha
- July 20, 2023
- 10:52 am
WHAT YOU SHOULD KNOW
- Elon Musk’s tweet featuring a meme with the caption “Doges ftw [for the win]” caused a rapid 3% increase in Dogecoin’s market capitalization (approximately $320 million) within just 15 minutes.
- This is not the first time Musk’s tweets have influenced Dogecoin’s value. In the past, he has caused significant valuation bumps by tweeting about the cryptocurrency or using the Doge meme in various ways, such as changing Twitter’s logo.
- Despite Musk’s fondness for Dogecoin and his playful tweets, his influence has led to legal consequences. A class action lawsuit has been filed against him by Dogecoin investors, alleging market manipulation and seeking damages amounting to $258 billion.
Elon Musk, the CEO of Tesla Inc., once again demonstrated the power of his tweets on cryptocurrency markets. Recently, he tweeted a meme featuring Scooby-Doo with the caption “Doges ftw [for the win],” which resulted in a significant surge in the value of Dogecoin, a cryptocurrency based on the Doge meme. Within just 15 minutes of the tweet, Dogecoin’s market capitalization increased by 3%, approximately $320 million, reaching $9.96 billion from $9.64 billion.
This is not the first instance of Musk’s tweets impacting Dogecoin’s valuation. In previous occasions, his tweets have caused substantial bumps in the cryptocurrency’s value. For example, in February, a picture of his dog caused a $500 million increase in Dogecoin’s valuation, and in April, changing Twitter’s logo to the Doge meme led to over a 20% rise in its value. Musk has openly expressed his admiration for Dogecoin, praising its humor and association with dogs, making it one of his favorite cryptocurrencies.
While Musk’s influence on Dogecoin has delighted some investors, it has also resulted in legal challenges. A group of Dogecoin investors filed a class action lawsuit against Musk, claiming that his tweets and comments about the token amount to market manipulation. The lawsuit seeks $258 billion in damages. In response, Musk’s lawyers have dismissed the suit, considering it a fanciful work of fiction and attributing the impact on the cryptocurrency to his innocuous and often playful tweets.
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