Dogecoin Investors Take Action Against Elon Musk
A group of investors holding Dogecoin (DOGE) has put their game faces on, requesting leave to amend a class-action lawsuit against none other than Elon Musk, the soon-to-be ex-CEO of Twitter. The allegation? Musk supposedly tapped into his massive social media influence to manipulate the price of the beloved meme token, turning some unsuspecting investors into collateral damage along the way.
Allegations of Cryptocurrency Market Manipulation
In a filing submitted on May 31 in the United States District Court for the Southern District of New York, it was claimed that Musk engaged in an “undisguised course of cryptocurrency market manipulation.” The investors argue that not only did Musk profit from DOGE trades, but he did so at the very expense of other investors—propping prices up and sending them spiraling down with his every tweet and viral appearance.
Musk’s Memetastic Maneuvers
Among Musk’s tactics was his infamous Twitter logo swap, where he cheekily changed the site’s logo to the Dogecoin emblem, sending prices soaring faster than a firework on the Fourth of July. As stated in the complaint, this was just one example of how the world’s richest man allegedly turned a pop-culture phenomenon into his personal cash cow while the average investor held their breath in anxiety.
Legal Roller Coaster
The legal saga began back in June 2022, before Musk even took the reins at Twitter. Since then, the complaint has been adjusted not once, but twice to reflect alleged insider trading moves and to classify DOGE as a security under standards dictated by the U.S. Securities and Exchange Commission. Talk about a legal plot twist!
Musk’s Defense: Just a Laugh?
In response to recent claims, Musk’s legal team has maintained that his actions—like tweeting memes and funny pictures—are nothing but light-hearted banter, asserting that such activities do not amount to fraud. But for those bitten by the Dogecoin bug, it feels pretty serious. The amended lawsuit paints a picture of Musk as a carnival barker selling dreams to ordinary folks, including veterans and blue-collar workers, while lineing his own pockets.
The Future of Twitter and Musk’s Next Moves
As many know, Musk’s grasp on Twitter has seemingly weakened since purchasing the platform for a staggering $44 billion, with its value reportedly dropping by a mind-boggling 33% post-acquisition. Following a tumultuous period, Musk has announced his intention to step down as CEO, with Linda Yaccarino set to take over the reins. Whether this move will also mean a shift in strategies regarding DOGE remains to be seen—stay tuned!
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