Tesla CEO Elon Musk is facing a legal dispute regarding allegations of manipulating the value of Dogecoin, a cryptocurrency he openly supports.
Investors claim that either Musk or Tesla controlled multiple Dogecoin wallets used in these trades.
Tesla CEO Elon Musk is facing a legal dispute regarding allegations of manipulating the value of Dogecoin, a cryptocurrency he openly supports. In a recent update, Musk refuted claims of owning the crypto wallets supposedly involved in dubious Dogecoin transactions. This denial follows an amended complaint filed on June 7, which accuses Musk of being involved in a pump-and-dump scheme involving $95 million worth of Dogecoins.
In an amended complaint filed on June 7 in Manhattan federal court, the accusers accused Musk of an alleged pump-and-dump scheme, of profiting from selling $95 million worth of Dogecoins. Additionally, investors alleged that Musk employed tactics. They include Twitter posts, payments to online influencers, his appearance on NBC’s Saturday Night Live in 2021, and other attention-grabbing actions to conduct profitable trades at their expense. They claimed that Musk or Tesla controlled multiple Dogecoin wallets used in these trades.
One notable instance mentioned was Musk’s sale of approximately $124 million worth of Dogecoin in April, which coincided with his replacement of Twitter’s blue bird logo with Dogecoin’s shiba inu dog logo. This change resulted in a 30% surge in Dogecoin’s price.
Following the logo switch, the cryptocurrency experienced a significant surge of 30%, rising from $0.07705 to $0.10109. However, Elon Musk’s lawyer, Alex Spiro, strongly responded to Evan Spencer, the plaintiff’s lawyer, challenging the validity of his claims and raising doubts about his legal competence.
In the letter dated June 9, Spiro disputed the plaintiff’s assertion that certain wallets “belong” to the defendants, stating that the allegation lacked basis and was incorrect. The letter stated,” The sole basis for your claim is that these wallets sold Dogecoin at a time when, according to the Third Amended Complaint, prices were up.”
The amended complaint claimed ownership of a specific wallet by Elon Musk, pointing to a tweet he made on February 10, 2021, where he mentioned buying 28.061971 worth of Dogecoin. According to the complaint, this transaction, which referred to Musk’s date of birth (June 28, 1971), was evident in the wallet.
Analyzing Dogecoin’s Price Trends
Recently, the value of Dogecoin (DOGE) hit its lowest point in 2023, plummeting by 10% in just 24 hours. This significant decline pushed the price of the popular meme coin down to $0.0618. In the next 48 hours, the cryptocurrency continued to depreciate.
The current price of Dogecoin is $0.06141, with a 24-hour price change of 0.88%. Moreover, the price has decreased by 3% over the past seven days. Additionally, the market capitalization of Dogecoin stands at approximately $ 9B. The trading volume for Dogecoin is currently at $192M.
Regarding historical data, Dogecoin has experienced an all-time high of $0.74 and an all-time low of $0.00009. When considering market sentiment, the Fear-Greed Index for Dogecoin stands at 41, indicating a fear prevailing among investors. This could majorly be because of the ongoing Musk case. Furthermore, the volatility of the coin is reported at 5.82%.
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Dogecoin’s 50-Day Simple Moving Average is $0.072656, while the 200-Day Simple Moving Average is $0.080224. Moreover, Dogecoin’s 14-Day Relative Strength Index (RSI) is 30.29.
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