Tesla boss Elon Musk is loyal to Dogecoin – and probably used the price slide to buy it

taketonews

Elon Musk signals continued support for DOGE despite charges
Dogecoin with heavy year-to-date losses
Low courses probably used to buy

Tesla boss Elon Musk is currently facing a number of lawsuits – one of which concerns his involvement in the cryptocurrency Dogecoin. An investor in the US accuses him of being part of an illegal Ponzi scheme that drove up the Dogecoin price and then let it crash. According to the plaintiff, Musk and his companies Tesla and SpaceX presented DOGE as a legitimate investment, although it had no value.

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A court must decide whether the lawsuit is allowed and whether the points raised are justified. In fact, however, the Tesla boss has a close relationship with the digital currency: For example, at the beginning of 2021 he proclaimed himself “Dogefather” and has for some time made it possible for Tesla and SpaceX to pay for merchandising items with the cryptocurrency. And other statements by Elon Musk undoubtedly have an influence on the behavior of the cyber currency. According to “Yahoo Finance”, for example, the billionaire described the coin as a “rip-off” in a skit on the show “Saturday Night Live” last year, triggering a 40 percent price slide. Musk once again commented on the Dogecoin recently – and thus caused it to rise sharply.

Tesla boss pushes DOGE course again

Taking to Twitter on June 19, the Tesla CEO said – possibly in response to the lawsuit filed against him – that he would continue to support the dogecoin. When a user commented that he should continue buying the coin in this case, Musk briefly replied: “I do”.

The dogecoin reacted to these two tweets from the Tesla boss with a significant price increase. According to data from “CoinMarketCap”, while DOGE had fallen as low as $0.04972 on Saturday as part of the bloodbath in the crypto market, which also pushed Bitcoin below the $20,000 mark, hitting a new yearly low, it then went higher on Sunday following the tweet, eventually reaching $0.06247 late in the evening.

The prices of Bitcoin and other cryptocurrencies were also able to recover somewhat on Sunday, but according to “t3n” DOGE recorded the highest percentage growth among the ten most important cryptoassets. According to a Twitter user, the Dogecoin price rose by almost six percent from around $0.052 to around $0.055 just within the first three minutes after Elon Musk’s tweets.

Musk probably bought Dogecoin at bargain prices

However, this recent price increase cannot hide the fact that the Dogecoin has suffered huge losses since the beginning of the year: At the start of the year, the coin was still around 0.17 US dollars. But that also means that Elon Musk – if he actually bought more units of the cryptocurrency – probably used the low prices to increase his investment. However, the Tesla boss did not reveal the amount for which he bought the dog coin in the recent past. However, he may share this information in another tweet in the future.

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Image Sources: CKA/Shutterstock.com, ODD ANDERSEN/AFP/Getty Images



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