Everyone already knows that when Elon Musk, who was once called the “Dogefather,” says anything about Dogecoin, the markets move. This time around, though, in a world where Bitcoin and Ethereum are both down 30% (with Bitcoin hitting lows on levels not seen since as far back as 2017), with the crypto market cap slashed to US$830 million, even that seemed extra silly.
But apparently not. Dogecoin jumped 8%, with the value going up to US$0.058, after Musk said that he will keep supporting his favorite cryptocurrency.
This comes shortly after Musk was hit with US$258 million dollar lawsuit for pushing what was originally supposed to be a joke coin. The lawsuit alleges that Dogecoin “is not a currency, stock, or security. It’s not backed by gold, other precious metal, or anything at all” after Musk has allowed customers to use the token to buy merch from Tesla and more recently, SpaceX.
Musk was recently called “a grifter” by Dogecoin co-founder Jackson Palmer for how he’s selling his vision and not much else. Co-founder Billy Markus meanwhile responded to Musk’s tweet and recognized his support.
Information for this briefing was found via Twitter and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.