Tesla CEO Elon Musk once again promoted Dogecoin. On April 4, the willful Musk suddenly changed the well-known blue bird logo of Twitter to the Dogecoin emoji avatar, which triggered heated discussions in the market. As a result, Dogecoin's intraday increase was as high as 42%, and its total market value has exceeded 13 billion US dollars.
Later, Musk also posted a picture containing Dogecoin on Twitter, "A policeman is checking a document with a blue bird logo on it, but the Dogecoin avatar said, 'That's an old photo.'" At present, it is still unknown whether Musk will permanently change the Twitter logo. At the same time, Musk also posted a "SeizeJPGs" NFT from the Meme Card series launched by Punk 6259 on Twitter, which soared the price of the work from 0.5 ETH a few days ago to more than 2.7 ETH.
As the godfather of Dogecoin, Musk has been working tirelessly to endorse Dogecoin. Although Dogecoin was born as a joke, the creator used the magical Doge head emoticon to satirize the "air coin" with a speculative atmosphere in the circle, but the meme culture derived from it has made it highly sought after by the market. Since 2019, Musk has been publicly expressing his love for Dogecoin without hesitation, and even changed his personal Twitter account information to "Dogecoin CEO".
Moreover, Musk also combined Dogecoin with the business of his companies. For example, Tesla also used Dogecoin as a means of payment for some of its products, including the launch of the custom whistle Cyberwhistle that only supports Dogecoin purchases; The Boring Company allows customers to use Dogecoin to pay for rides on its Las Vegas transportation system, and the perfume Burnt Hair supports payment with Dogecoin; SpaceX named one of its launched satellites "DOGE-1"; Musk also jokingly said that Dogecoin should be an acceptable payment method for Twitter subscriptions. In addition, Musk and Tesla both hold Dogecoin.
In March 2022, Musk asked on Twitter, "Do we need a new platform?" Some netizens commented that they would buy Twitter and replace the blue bird logo with a dog head. In response, Musk replied, "Haha, that's disgusting." A year later, Musk "fulfilled his promise" and not only successfully acquired Twitter, but also replaced Twitter's blue bird logo with a dog emoji.
Under the Musk effect, not only have more and more investors around the world begun to pay attention to Dogecoin, but its price has also fluctuated greatly. However, this endorsement behavior has also brought trouble to him.
In June 2022, an American Dogecoin investor filed a lawsuit against Musk, Tesla and SpaceX in the Manhattan Federal Court in New York, demanding up to $258 billion in compensation. The plaintiff claimed that Musk and his companies Tesla and SpaceX carried out a "pyramid scheme". He used his position as the world's richest man to operate and manipulate the Dogecoin pyramid scam, deliberately pushing the price of Dogecoin up more than 360 times in two years and then letting the price collapse in order to gain profits, exposure and fun. At the same time, the lawsuit also requested that Musk and his companies be prohibited from further promoting Dogecoin.
In response, Musk and Tesla's lawyers said that the lawsuit filed by Dogecoin investors against Musk's "harmless and often stupid tweets" was a "fantasy novel." Investors never explained how Musk committed fraud or what risks he concealed. Musk's remarks such as "Dogecoin Rulz" and "No highs, no lows, only DOGE" were too vague to support the fraud allegations. It is not illegal to post supportive remarks or interesting pictures about a legitimate cryptocurrency on Twitter. At the same time, in a footnote to a document filed with the Manhattan Federal Court, Musk's lawyers also rejected investors' claims that Dogecoin qualifies as a security. According to the latest litigation progress, Musk has asked a US judge to dismiss the $258 billion class action lawsuit filed by Dogecoin investors against him and let the plaintiffs stop fantasizing.
Given Musk's appeal, his words and deeds often cause price fluctuations in related markets, especially financial products such as Dogecoin that are prone to large ups and downs. Investors should judge his "order-calling behavior" with caution.
