Elon Musk is in the news every day, unfortunately the one he is involved in today is not the most positive. Yesterday, Thursday, June 16, an investor in Dogecoin, the cryptocurrency created as a joke, sued the tycoon. The lawsuit was filed for $258 billion dollars that Musk would have to pay if it comes out in favor of the investor.
Keith Johnson accuses Elon Musk and his companies Tesla and SpaceX for the losses he has suffered by investing in cryptocurrency. Johnson maintains that he lost quite a bit of money after investing in Dogecoin and describes himself as a “US citizen who got scammed.” But what does Elon Musk have to do with all this?
The coin, which was invented in 2013, was launched as a tongue-in-cheek response to cryptocurrencies like Bitcoin and the image of a Shiba Inu dog meme. So, the price of Dogecoin was traded in tenths of a cent the first few years of its existence. In May 2021, the value of the coin skyrocketed to $0.73 when a buying frenzy broke out around the GameStop saga. However, he had a little push from Musk to reach his value; The SpaceX owner took to Twitter to send “humorous messages” to his followers about the dog coin.
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Since then, Musk has made positive and negative comments about the coin, causing its value to rise and fall with each of his statements. Johnson is requesting in his complaint filed in a New York City court that it be classified as a class action lawsuit on behalf of all investors who have suffered Dogecoin losses since 2019. The plaintiff estimates that since Musk began promotional currency, investors have lost at least 86,000 million dollars.
Johnson expects that, with the lawsuit, Musk will have to repay investors this sum of money; furthermore, he expects him to pay an additional $172 billion in damages. To exemplify the moments in which the owner of Tesla promoted the coin, he cited some tweets; among them he cited one which said that SpaceX would “put a Dogecoin on the very moon”.
SpaceX is going to put a literal Dogecoin on the literal moon
— Elon Musk (@elonmusk) April 1, 2021
As for Tesla, the plaintiff maintains that it already accepts Dogecoin as a payment currency for some products. Meanwhile, SpaceX was included for having named one of its satellites ‘doge’. Finally, Johnson classified the digital currency as a pyramid scheme, since it has no intrinsic value and is not a product.