The dogecoin cryptocurrency, created in 2013 as a joke, skyrocketed this Monday after Twitter replaced its usual blue bird logo with the image of a Japanese shiba inu dog associated with this product.
The dogecoin price rose more than 26% in an apparent reaction to this movement by Elon Musk’s companywhich in the past has already often promoted this cryptocurrency, even accepting for the purchase of accessories from Tesla, the electric vehicle company that it runs.
The billionaire has said on more than one occasion that he owns dogecoins and last year he was sued by an investor who accused him of illegally inflating the price of cryptocurrencyone of the most volatile in the market.
At the close of the stock market last Fridaythe dogecoin traded almost 90% below its all-time highwhich it reached in May 2021.
This Monday, Twitter replaced its usual logo in its web version with the image of the shiba inu, a popular meme for years on the internet as a result of which the cryptocurrency was created.
Elon Musk Calls for Dogecoin Investor Lawsuit to Be Dismissed
Elon Musk asked a US judge on Friday to dismiss a racketeering lawsuit from $258 billion accusing him of running a pyramid scheme to back the Dogecoin cryptocurrency.
In an afternoon filing in Manhattan federal court, lawyers for Musk and his electric car company Tesla Inc called the Dogecoin investors’ lawsuit a “fanciful work of fiction” about Musk’s “innocuous and often silly tweets.” about Dogecoin.
The lawyers said that investors never explained how Musk intended to defraud someone or what risks he was hidingand that his statements such as “Dogecoin Rulz” and “no ups and downs, just Doge” were too vague to support a fraud claim.
“There is nothing illegal about tweeting words of support or funny images about a legitimate cryptocurrency that continues to have a market capitalization of nearly $10 billion,” Musk’s lawyers said. “This court should put an end to the plaintiffs’ fantasy and dismiss the lawsuit.“.
In a footnote, the lawyers also rejected the investor claim that Dogecoin qualified as a security.
The investors’ lawyer, Evan Spencer, said in an email: “We are more confident than ever that our case will be successful.”
Investors accused Musk, the world’s second-richest person according to Forbes, of deliberately driving Dogecoin’s price up more than 36,000% in two years and then letting it crash.
They said this generated billions of dollars in profit at the expense of other Dogecoin investors, even when Musk knew the coin lacked intrinsic value.
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