Dogecoin, which originated as a meme coin, experienced a substantial increase in value following a tweet by Elon Musk expressing his preference for "doges" and catching the attention of automated buying bots. This surge in price has prompted allegations of market manipulation and insider trading against Musk, leading to an ongoing $258 billion lawsuit. The lawsuit claims that Musk's actions deliberately manipulated the price of Dogecoin and caused significant financial losses for investors.
The lawsuit alleges that Musk's various actions, including posts on Twitter, paid influencer promotions, and appearances on "Saturday Night Live," were all designed to artificially inflate the value of Dogecoin. Additionally, a recent court filing accused Musk of defrauding investors by promoting Dogecoin and employing unlawful tactics to discredit the plaintiffs' lawyer and their claims.
The ongoing legal battle does not seem to deter Musk from continuing his active endorsement of Dogecoin. Despite the controversy, Dogecoin's value fluctuated, with a 3% gain following Musk's tweet and a subsequent 1.66% decrease over the next 24 hours.