Musk's Next Move: Will Dogecoin Be The Beneficiary Of His Investment Magic?

Elon Musk, the CEO of SpaceX and Tesla, has been a vocal supporter of Dogecoin since 2019, when he called it his fav cryptocurrency. Musk's tweets about Dogecoin have had a significant impact on its popularity and price, with the price of Dogecoin soaring after Tesla announced it would accept DOGE as a form of payment. Musk has also confirmed that he owns Dogecoin, along with Bitcoin and Ether. However, in 2024, Musk stated that he supports top Dogecoin holders selling most of their coins, as he felt that too much concentration in Dogecoin was an issue. Musk has been accused of deliberately driving up Dogecoin's price and has faced lawsuits from investors as a result. Despite the risks and volatility associated with cryptocurrencies, some experts believe that Dogecoin will continue to have long-term potential.

Musk's tweets about Dogecoin

Elon Musk, the CEO of SpaceX and Tesla, has been a vocal supporter of Dogecoin since 2019, when he first tweeted about the cryptocurrency, calling it his "fav cryptocurrency". Musk's tweets about Dogecoin have had a significant impact on its popularity and price.

On April 2, 2019, Musk replied to a tweet saying, "Dogecoin might be my fav cryptocurrency. It's pretty cool." This tweet caused a spike in the price of Dogecoin, with the cryptocurrency hitting an all-time high of $0.07376 in May 2021.

On July 17, 2020, Musk tweeted a meme of Dogecoin passing the global financial system, with the caption "It's inevitable." This again caused a surge in the price of Dogecoin, with a $100 investment on that day growing to $2,730.19 by November 2023.

Musk has continued to tweet about Dogecoin, even after acquiring Twitter for $44 billion in 2022. He has joked about Dogecoin potentially becoming the future reserve currency, saying, "What would be the most ironic outcome? The currency that started as a joke in fact becomes the real currency. To the moon!"

In February 2021, Musk tweeted his support for major Dogecoin holders selling most of their coins, stating that too much concentration in Dogecoin was the "real issue". This caused a mixed reaction from investors, with some agreeing with Musk and others criticising him for influencing the market.

Despite Musk's support for Dogecoin, he has also faced legal backlash for his tweets. In April 2023, Musk asked a US judge to throw out a $258 billion racketeering lawsuit accusing him of running a pyramid scheme to support Dogecoin. The lawsuit claimed that Musk deliberately drove up the price of Dogecoin and then let it crash, causing billions of dollars in losses for investors. However, Musk's lawyers called the lawsuit a "fanciful work of fiction" and argued that his tweets about Dogecoin were "innocuous and often silly".

Musk's impact on Dogecoin's price

Elon Musk, the CEO of SpaceX and Tesla, has had a significant impact on Dogecoin's price and popularity. Musk first tweeted about Dogecoin in 2019, calling it his "fav cryptocurrency". Since then, his multiple posts about the cryptocurrency have sent it on a rollercoaster ride, with its price soaring or plunging following his tweets.

For instance, in April 2019, Musk replied to a tweet saying, "Dogecoin might be my fav cryptocurrency. It's pretty cool." This caused the price of Dogecoin to rise. Another significant moment was on July 17, 2020, when Musk shared a meme of Dogecoin passing the global financial system with the caption, "It's inevitable." This also led to a spike in Dogecoin's price.

Musk's support for Dogecoin is partly due to the fact that many of his employees at Tesla and SpaceX own the cryptocurrency. He has also joked about Dogecoin becoming the future reserve currency, stating that "the currency that started as a joke in fact becomes the real currency. To the moon!"

In May 2024, Tesla updated its methods of payment to accept Dogecoin, which sent the price of the cryptocurrency soaring once again. However, Musk has also tried to curb the hype around Dogecoin, stating that people shouldn't "bet the farm on crypto" and that "true value is building products and providing services to your fellow human beings, not money in any form."

Despite Musk's influence, the trajectory of Dogecoin remains uncertain due to its volatile nature and the presence of competing memecoins. Experts warn that investing in cryptocurrencies like Dogecoin is risky and speculative, and that people should only invest what they can afford to lose.

Musk sued for $258 billion over Dogecoin

Elon Musk, the CEO of SpaceX and Tesla, has been sued for $258 billion over his alleged involvement in a Dogecoin pyramid scheme. Musk, who has been a vocal supporter of Dogecoin since 2019, has been accused by investors of deliberately driving up the cryptocurrency's price and then letting it crash, resulting in significant losses for other investors.

In a complaint filed in federal court in Manhattan, plaintiff Keith Johnson accused Musk, Tesla, and SpaceX of racketeering, claiming that they were aware that Dogecoin had no intrinsic value yet promoted it to profit from its trading. Johnson is seeking $86 billion in damages, representing the decline in Dogecoin's market value since May 2021, and wants it tripled. He also wants to block Musk and his companies from promoting Dogecoin and for a judge to declare that trading Dogecoin is a form of gambling under federal and New York law.

Musk's lawyers have called the lawsuit a "fanciful work of fiction" and argued that his tweets about Dogecoin, such as "Dogecoin Rulz" and "no highs, no lows, only Doge", were too vague to support a fraud claim. They have asked a U.S. judge to throw out the lawsuit, stating that there is nothing unlawful about tweeting words of support or funny pictures about a legitimate cryptocurrency.

Dogecoin, which was created as a joke in 2013, gained significant attention during 2020 and 2021 due to Musk's frequent posts about it on Twitter. Musk has also joked about Dogecoin becoming the future reserve currency and has said that he supports it because it felt like "the people's crypto". However, experts warn that just because Musk tweets about a cryptocurrency does not mean it is valuable or a good investment, and investors should always do their own research before deciding where to put their money.

While Musk's influence has undoubtedly impacted Dogecoin's popularity and price, it remains to be seen if its trajectory is tied to him in the long term. Despite the lawsuit, Musk continues to support Dogecoin, with SpaceX and Tesla recently announcing that they would soon accept the cryptocurrency as a form of payment.

Musk's support for Dogecoin

Elon Musk, the CEO of SpaceX and Tesla, has been a vocal supporter of Dogecoin, a meme-inspired cryptocurrency that began as a joke in 2013. Musk's interest in Dogecoin dates back to 2019 when he first tweeted about it, calling it his "fav cryptocurrency". Since then, his tweets have caused spikes in Dogecoin's price and increased volatility.

Musk's influence on Dogecoin's popularity and price is undeniable. In May 2024, Tesla updated its methods of payment to accept Dogecoin, causing the price of DOGE to soar. Musk's tweets about Dogecoin, often filled with humour and irony, have kept the cryptocurrency in the public eye and fuelled its rollercoaster ride.

However, experts warn that Musk's influence does not equate to value or a good investment. Cryptocurrency is viewed as a volatile, risky, and speculative investment, and investors are cautioned to do their research and only invest what they can afford to lose.

Despite the risks, Musk's continued support for Dogecoin has been unwavering. He has repeatedly mentioned working with Dogecoin developers and even integrated Dogecoin into his businesses, further cementing its relevance in the cryptocurrency space.

Dogecoin's value and volatility

Dogecoin is a highly volatile cryptocurrency. It was created as a joke in 2013 by IBM software engineer Billy Markus and Adobe engineer Jackson Palmer. It is a parody cryptocurrency based on a viral internet meme of a Shiba Inu dog. Dogecoin has no intrinsic value and was never designed to have any real-world utility beyond being a simple blockchain-based payment system. However, it quickly amassed a dedicated community of fans who developed new use cases for it, including a third-party online tipping service and crowdfunding charitable causes.

Dogecoin's value is highly dependent on social media hype and endorsements from celebrities and influencers like Elon Musk. Musk, who now refers to himself as the "Dogefather", has been tweeting about Dogecoin since 2019 and has been responsible for pumping its price on several occasions. In May 2024, Tesla updated its methods of payment to accept Dogecoin, sending the price of the cryptocurrency soaring. Dogecoin's price is also influenced by its limited supply and high issuance rate. Unlike Bitcoin, Dogecoin doesn't have a fixed supply, and its high issuance rate means that more Dogecoin enters circulation in two days than Bitcoin's total supply, which is set to top out at 21 million around the year 2140.

Despite its volatile nature, Dogecoin has seen significant growth over the years. As of May 2024, the price of Dogecoin was up 94.1% in the past year, according to CoinGecko data. However, it is difficult to predict what Dogecoin will be worth in the future due to its volatile nature and the influence of factors like social media hype and celebrity endorsements.

Dogecoin's volatility and riskiness as an investment are further highlighted by the $258 billion racketeering lawsuit filed against Musk, accusing him of running a pyramid scheme to support Dogecoin. The lawsuit alleges that Musk deliberately drove up Dogecoin's price by 36,000% over two years and then let it crash, generating billions of dollars in profit at the expense of other investors. While Musk's lawyers have called the lawsuit a "fanciful work of fiction", the outcome of the case could have a significant impact on Dogecoin's value and reputation.

Frequently asked questions