Musk is accused of illegally manipulating the price of Dogecoin
Elon Musk, the billionaire and owner of social media platform X (formerly Twitter), has once again stirred controversy. A recent Doge meme posted by Musk caused a brief spike in Dogecoin (DOGE) prices. However, many speculate whether this action was a calculated move, especially as Musk faces legal accusations of manipulating the cryptocurrency’s value.
Doge Meme Triggers Brief Price Surge
Yesterday, Musk shared a meme featuring the iconic Shiba Inu, the symbol of Dogecoin, with a caption referencing the “Department of Government Efficiency” (D.O.G.E.). Almost instantly, the price of DOGE saw a noticeable uptick, despite being in a downward trend beforehand.
Although this price increase was short-lived and quickly reverted, it reignited skepticism about Musk’s intentions. This isn’t the first time his tweets have been linked to sudden DOGE price hikes.
Legal Accusations of DOGE Manipulation
In September, Musk posted another D.O.G.E.-related meme, which also coincided with a rise in Dogecoin’s value. These patterns have led to a class-action lawsuit accusing Musk of deliberately manipulating Dogecoin prices through his social media activity since 2021.
The lawsuit alleges fraud and insider trading, claiming Musk exploited his influence to profit from the meme cryptocurrency. However, just last week, some Dogecoin investors surprisingly withdrew the lawsuit without providing a clear explanation, fueling further speculation about Musk’s motives.
Fan of memes or strategic player?
Musk is known as an avid fan of memes and has often expressed his fondness for Doge-related content, which has existed independently of the cryptocurrency since 2013. He has maintained that his posts are purely for entertainment or tied to his political initiatives, not cryptocurrency promotion.
By naming a political entity “D.O.G.E.,” Musk might be creating a plausible defense against accusations of crypto manipulation. He could argue that his posts were unrelated to the Dogecoin cryptocurrency, thus avoiding legal consequences.
Conclusion: Unclear Intentions
It remains uncertain whether Musk is actively manipulating Dogecoin prices, but his social media activity undeniably has a significant impact on the market. Whether intentional or coincidental, this serves as a reminder that digital asset values like Dogecoin are highly volatile and can be influenced by unpredictable factors.
