Elon Musk sued Over Dogecoin Pyramid Scheme. Musk has promoted each time the meme-coin and has affected the price of the coin positively. He has been the biggest supporter of cryptocurrency Dogecoin, thereby causing tremendous increase in the value of the coin. Also the tech billionaire is self associated as ‘Doge father’. But, on Thursday, a Dogecoin investor had sued Musk for around $258 billion for accusing him on running a pyramid scheme for supporting the cryptocurrency. Elon Musk, who is the CEO of the electric car company Tesla Inc and space tourism company SpaceX was accused by Keith Johnson of racketeering for touting Dogecoin and shooting its price up, just for manipulating its price. When we have gone through the issue, we have found that every time Musk has promoted the meme-coin being named as ‘Elon Musk Cryptocurrency’ and has affected it’s price rise instantaneously.
Also defendants were aware since 2019 that Dogecoin was not having value but still got promoted and the complaint further mentioned that “Dogecoin to profit from its trading”. Complaint further added that Musk uses his post of World’s Richest man for operating and manipulating Dogecoin Pyramid Scheme for amusement, profit and exposure. Where the lawyer of Musk didn’t immediately gave response to requests for comment.
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Beginning Journey Of Dogecoin
Where as we all know that, Dogecoin was developed in 2013 by the software engineers Billy Markus and Jackson Palmer as fast but “fun” alternate to Bitcoin. It started out of a joke on various fraud crypto coins which have come up at the time and took its name and logo from a Shiba Inu meme which became viral many years back. As Bitcoins, whose maximum number is fixed on around 21 million(such a figure is expected to meet by 2040). The numbers of Dogecoin are not having any upper limit and already 100 million of them exist, might be more.
Musk Behind Dogecoin
As the complaint against Musk said that Dogecoin’s sell off had started at time when Musk had hosted the NBC show and this all begun in April 2021, when Musk mentioned in cryptic tweet about “Doge barking at the moon.” Value of Dogecoin had gone to $0.45 (around Rs. 34). After few days, he mentioned his followers about the possibility of Dogecoin being featured in his ‘Saturday Night Live’ debut. Cause of all this, value of Dogecoin went up as 20% after Musk associated himself as the “Dogefather” in his tweet. His Twitter bio was also changed by him to “Former CEO of Dogecoin.”
DeFi Accessible
Musk had made approval of Dogecoin over Ethereum by mentioning that DOGE could be used for making of Decentralised Finance (DeFi) so that it is more accessible for everyone. DeFi system is basically blockchain-based form of finance which is not based on financial intermediaries as brokerages, exchanges or any of the banks for offering of services. Such basis give allowance to their users to keep hold of their Ethereum– based crypto assets.
Musk had replied to CoinDesk story on Twitter as to how the Ethereum focused DeFi protocols are not becoming accessible for small investors cause of higher transaction fees. Musk has thereby tweeted a single word reply on this story as ‘Dooooge’, relating to his most liked cryptocurrency, the Dogecoin, famous as ‘Elon Musk Cryptocurrency’. This has again raised the value of crypto coin.
Acceptance of Dogecoin By Tesla
In January Elon Musk had announced that Tesla would accept the meme-based cryptocurrency Dogecoin as payment for its merchandise as “Giga Texas” belt buckle and small models of electric vehicles. Such a move had raised the price of Dogecoin by 14% hike. Where Tesla’s merchandise involve the currently launched “Cyberwhistle” and “Cyberquad for kids”, being famous with its fans and which are generally sold out within few hours of listing.
Elon Musk’s Belief For Dogecoin
Tesla CEO Musk is of the belief that Dogecoin is good for transactions when compared with Bitcoin. He also added that when it comes to transactions per day, Deogecoin is much better crypto asset. As the transaction value of Bitcoin is low and cost per transaction is high, at space level, it is relevant as store of value. But when considered, Bitcoin isn’t good substitute for transactional currency. Whereas, no doubt Dogecoin emerged as stupid joke but it is best suited for transactions. The transactional flow with Dogecoin is the transactions per day and it is holding way higher capability than the Bitcoin.
Elon Musk Pushes McDonald’s
When talked in terms of McDonald’s, here also Elon Musk’s cryptocurrency Dogecoin has seen increase in its value only after Musk said that he is going to eat McDonald’s Happy Meal on television only in case American fast-food chain accepts the meme based cryptocurrency. Happy Meal is kid’s meal which is sold by McDonald’s in red cardboard box with yellow smiley face. Meal always comes with a toy. On this, response of Elon Musk’s tweet, McDonald’s has given a response that they are ready to accept meme based coin only in case Tesla accepts Grimacecoin.
Means of Payment at Supercharging Station
Elon Musk had announced on Twitter that its supercharging station at Santa Monica would very early accept cryptocurrency Dogecoin as means of payment. With this announcement again Elon Musk’s cryptocurrency Dogecoin witnessed a hike.
To this, Ryan Zohoury, founder of Tesla Console mentioned that soon after new Santa Monica Superchargers were opened, they were full already. In response to this, the tech billionaire responded that he was planning a future based diner or drive-in theatre at supercharging station and yes payment could be done in Doge.
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