Elon Musk’s Dogecoin court battle ends in victory: ‘Absolutely hilarious’

by
    A judge has dismissed a lawsuit accusing Musk of Dogecoin manipulation and insider trading.
    Musk’s recent tweet boosts DOGE slightly, but market signals remain mixed.

As a seasoned crypto investor with over a decade of experience under my belt, I’ve witnessed my fair share of market volatility and legal battles. The recent dismissal of the lawsuit against Elon Musk regarding Dogecoin manipulation and insider trading has brought a sense of relief to many investors like myself who have been following this case closely. While it’s hard to deny that Musk’s influence over DOGE is significant, I remain skeptical about its long-term potential.

For quite some time, Elon Musk and his firm, Tesla Inc., have been under scrutiny due to allegations that they deceived investors by manipulating the value of Dogecoin (DOGE) and engaging in illicit insider trading. These claims suggest significant financial losses amounting to billions.

Musk wins the lawsuit

On the 29th of August, U.S. District Judge Alvin Hellerstein in Manhattan decided to support Elon Musk by tossing out the federal lawsuit against him.

In this scenario, critics accused the wealthiest individual of leveraging Twitter updates, a 2021 episode on “Saturday Night Live”, and various attention-grabbing actions to artificially influence the Dogecoin (DOGE) market price.

As a researcher, I’ve found evidence suggesting that profits were made, seemingly against me, via multiple Dogecoin wallets allegedly under his control, as well as potentially through accounts associated with Tesla Inc.

Crypto community celebrates

Mocking on the move made by the judge, X (formerly Twitter) user Sir Doge of the Coin noted, 

The humorously surprising court papers presented by the judge today, which have dismissed Elon Musk’s accusation of insider trading concerning Dogecoin (a claim initially seeking $258 billion in compensation), are quite amusing.

Joining the fray was MPAA, who added, 

“A win for crypto!”

What’s more to it?

Critics have suggested that Elon Musk may have artificially inflated the value of Dogecoin (DOGE) by increasing its price more than 36,000% over a two-year period, only for it to later drop sharply.

It’s been claimed that Musk and Tesla coordinated their trades with Musk’s remarks about Dogecoin. For instance, there was a significant sale in April 2023 following an increase of 30% in the value of Dogecoin due to X’s logo change, which was made by Musk.

According to Hellerstein, Musk’s claims that Dogecoin could be the global currency of Earth in the future and could potentially be used for buying Tesla vehicles or sending to the moon were deemed… (Musk’s assertions about Dogecoin being the potential global currency of Earth and its possible use for purchasing Teslas or reaching the moon were considered…)

“aspirational and puffery, not factual and susceptible to being falsified.”

Impact on Dogecoin

Given Musk’s influence and his win, many were curious about its potential effects on Dogecoin.

It’s no secret that Elon Musk’s tweets often boost Dogecoin’s price, and today was no exception – the cryptocurrency saw a 1.49% rise over the past day, currently trading at around $0.1021.

Nevertheless, the Relative Strength Index (RSI) stayed beneath the impartial threshold, suggesting ongoing bearish influence. Moreover, the Moving Average Convergence Divergence (MACD) line was close to the Signal line (represented by orange), offering no conclusive indication at present.

It implies that although Elon Musk’s actions influence Dogecoin’s price fluctuations, there are other factors at play as well that contribute significantly to its market dynamics.

That being said, although it is hard to predict whether DOGE will go to the moon or not, Musk’s lawyer Alex Spiro put it best in an emailed statement when he said, 

“It’s a very good day for dogecoin.”

Read More

2024-08-30 18:16