Daily chart of the price of Dogecoin (DOGE/USDT)ĭOGE currently has a drawdown from the all-time highs recorded in May 2021 of more than 90%. This, as mentioned earlier, is typical of scenarios in which one or more whales manipulate the price of an asset through social influence techniques. Very interestingly, every sudden pump in price, in addition to always having Musk’s hand in it, has been followed by a rapid decline. The DOGE cryptocurrency represents the first memecoin by market capitalization with a total value of more than $10 billion.Ĭurrently, the crypto’s price is $0.0717 with a volume in the last 24 hours of $165 million.Īnalyzing the chart of Elon Musk’s favorite dog we can see how the price is now crushing the 60-period moving average on a daily time frame, yet remaining above the $0.065 support. We will see in the coming months how the judicial events of the case will follow. To be honest, I do not think any of us ever believed that there was no ulterior motive behind Musk’s exploits, given and considering that his Twitter profile has more than 140 mln followers. “Musk’s pretense that promotion of Dogecoin was just well-meaning fun-not meant to be taken seriously-is not credible.” Investors involved in the case state that: This time Elon could really pay dearly for his actions if only the judge challenges him on the “fun and sympathy” aspect. In the lawsuit filed in Manhattan, on-chain transactions and the address that allegedly belonged to Musk are mentioned, demonstrating the multibillionaire’s impeccable timing in dumping his positions in the very aftermath of the crypto’s pump. In the following hours and days, the crypto went through a distribution phase that basically nullified all the previous pump, a typical scenario of market manipulation. Hourly chart of Dogecoin (DOGE/USDT) price That choice, which in Musk’s defense would be part of a “ gesture of sympathy,” allegedly drove the price of $DOGE up more than 22% in just one hour of trading on the market. In the sights of investors suing Tesla’s CEO is a particular emphasis on the instance in which Musk allegedly placed the Dogecoin logo on the Twitter home page. The news comes as no surprise at all to most, who noticed the ambiguity with which Musk had dealt with the memecoin. Hence, Elon Musk once again finds himself in the spotlight for illegally contributing to the rise in the price of Dogecoin, on which he obviously profited from trading. Elon Musk is paying dearly for his sympathy toward Dogecoin The ball is now in the hands of US District Judge Alvin Hellerstein, who, as anticipated, will most likely accept the “amended compliant” i.e., the modification of the previous charge, adding that the defendants will not have to serve prejudice. However, in the new document filed in Manhattan there is a dispute of this old claim, which according to the group of investors harmed by market manipulation, is no longer credible. “There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.” Musk’s lawyers, with regard to the June 2022 lawsuit (the second) had defended by stating: Indeed, after that event, it was discovered that the second richest man in the world allegedly sold from his personal wallet, bags of Dogecoin amounting to $124 million. Specifically what is being disputed against Musk is the legality of Musk’s choice to replace Twitter’s bird logo for a few days with that of Dogecoin, depicting the well-known Shiba Inu dog. The charges were filed on 31 May in Manhattan federal court by a group of crypto investors who, following and amending an earlier $258 billion class action lawsuit from June 2022, filed new charges against Tesla‘s CEO.Īs per the letter filed with the court, the stakeholder allegedly engaged in a “deliberate carnivalesque course of barking, market manipulation and insider trading.” Second, Musk allegedly exploited other “ publicity stunts” such as appearing on “Saturday Night Live” in 2021 and promoting on social media by some influencers to profit from Dogecoin trading. Here we go again: Elon Musk has been charged for the third time with insider trading for artificially manipulating the price of Dogecoin through a series of actions mainly involving tweets praising the crypto market’s first memecoin.
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