Once again, Elon Musk, CEO of Tesla Inc., caused a significant surge in Dogecoin’s valuation with a single tweet, reports Fortune.
The Power of a Tweet: Musk, known for his fondness for memes and dogs, on Wednesday, tweeted a meme featuring the cartoon character Scooby-Doo with the caption “Doges ftw [for the win].”
This led to a rapid increase in the value of Dogecoin DOGE/USD, a cryptocurrency based on the Doge meme. In just 15 minutes, the market capitalization of Dogecoin rose by 3% (about $320 million) from $9.64 billion to $9.96 billion.
Musk’s Influence on Dogecoin: This is not the first time Musk’s tweets have significantly impacted the value of Dogecoin. In February, he created $500 million bump in valuation for the coin with a picture of his dog. In April, he changed Twitter’s logo to the Doge meme, causing a more than 20% increase in the cryptocurrency’s value.
Musk has often publicly expressed his fondness for Dogecoin, stating at a conference in May that it is his favorite cryptocurrency because it has “the best humor” and “it has dogs.”
Legal Implications: However, Musk’s influence over Dogecoin has also led to legal issues. A group of Dogecoin investors filed a class action lawsuit demanding $258 billion in damages from Musk, alleging that his tweets and comments about the token amount to market manipulation.
Musk’s lawyers have dismissed the suit as “a fanciful work of fiction” over his “innocuous and often silly tweets.”
Read Next: Ron DeSantis Dodges Question On Whether He Would Sign Nationwide Abortion Ban
Image via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4 Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
Photo: Flickr, Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.