Dogecoin spiked on Sunday after Tesla CEO Elon Musk said that he will still be buying the meme coin. Musk’s comment was enough to cause Dogecoin to rise by 8% to $0.058. However, the 5.8 cents is a far cry from a 91% drop from Dogecoin’s all-time record of the 72 cents touched in May 2021.
In a tweet today, Musk said he would continue to support the meme coin. “I will keep supporting Dogecoin,” Musk tweeted.
I will keep supporting Dogecoin
— Elon Musk (@elonmusk) June 19, 2022Ads
When asked if he would keep buying DOGE, Musk responded, “I am.”
— Elon Musk (@elonmusk) June 19, 2022
Musk’s support tweet, which predictably gives Dogecoin the needed price bounce, came just a week after he and his companies were sued over an alleged Dogecoin “pyramid scheme.” Musk was sued on Thursday for $258 billion by a Dogecoin investor who accused the billionaire of running a pyramid scheme to support the cryptocurrency, Reuters reported.
In a lawsuit filed in federal court in Manhattan, plaintiff Keith Johnson accused Musk, his electric car company Tesla Inc (TSLA.O), and space company SpaceX of racketeering for touting Dogecoin and driving up its price, only to then let the price tumble. It’s unclear if the lawsuit prompted Musk to make the latest comment about his support for Dogecoin.
“Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading,” the complaint said. “Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure, and amusement.”
Dogecoin started as a joke in December 2013 based on the popular “doge” meme represented by a Shiba Inu dog as its logo, literally taken from the “Doge” meme.
We wrote about Musk and Dogecoin back in January after Musk continued his relentless promotion of Dogecoin saying that he would eat a happy meal on TV if Mcdonald’s accepted Dogecoin as payment. “I will eat a happy meal on tv if @McDonalds accepts Dogecoin,” Musk tweeted. Mcdonald’s has yet to take Musk up on the challenge.
I will eat a happy meal on tv if @McDonalds accepts Dogecoin
— Elon Musk (@elonmusk) January 25, 2022
For months, Musk has been promoting Dogecoin. Calling it people’s coin, Musk once told TMZ in an interview that Dogecoin could be the future of cryptocurrency. He also offered words of caution for crypto investors saying “Don’t take too much risk with cryptos.”
“First of all, I think people should not invest their life savings in cryptocurrency. To be clear, I think that’s unwise. But if you want to sort of speculate and maybe have some fun, there is a good chance that crypto is the future currency of Earth. And then, it’s like, which one is it going to be? Maybe it’ll be multiple. But it should be considered speculation at this point. So don’t go too far on the crypto speculation part,” Musk said while signing autographs.
Some on social media as gone as far as calling Musk “The DogeFather,” a reference to the GodFather movie.