elon musk

The world’s richest man and the CEO of Tesla, Elon Musk, has recently been sued for over $200 billion for allegedly being part of a crypto pyramid scheme. After Musk again took to Twitter to support Dogecoin, users were rewarded with instant gains just minutes after the tweet. 

Will crypto influencers steer clear of the crypto markets after the current backlash? Or will they follow in Musk’s footsteps? Let’s take a look. 

Your capital is at risk.

Elon Musk Sued 

The billionaire investor has been notorious for his heavy involvement in the crypto markets. On June 18th, Musk tweeted in support of Dogecoin – his involvement lifting prices and increasing meme coin sentiment. In the past, Musk has been blamed and credited for creating such volatile price movements by making a single tweet. 

Elon Musk dogecoin tweet

However, Musk and his companies have been hit with a $258 billion lawsuit, as the plaintiff claims he is a part of a racketeering scheme to pump the dogecoin price. 

The plaintiff, Keith Johnson, identified himself as an American citizen who was defrauded of money by the defendant, Elon Musk. “Musk, Tesla and SpaceX falsely and deceptively claim that dogecoin is a legitimate investment when it has no value at all”, says Johnson. 

After filing the lawsuit in New York, Johnson is seeking class-action status. The plaintiff is asking for $86 billion in damages and $172 billion in triple damages. The number represents Dogecoin’s market cap lost since its May 2021 peak. 

The lawsuit identifies many of Musk’s tweets in the last 18 months that support Dogecoin as an investment opportunity. “Dogecoin is simply a fraud whereby greater fools are deceived into buying the coin at a higher price”, the lawsuit reads. 

The price of Dogecoin peaked before Musk’s anticipated appearance on Saturday Night Live in early May 2021. Since then, the token has lost more than 90% of its value. Musk has previously stated that Tesla bought large amounts of Bitcoin but sold it months later due to its negative environmental impact. 

Since then, Musk has supported Dogecoin and offered the token as a payment option when buying merchandise from Tesla and SpaceX. 

Will Crypto Influencers Follow or Steer Clear? 

Following the recent increase in interest rates, the global markets have been plunging. However, crypto influencers like Elon Musk remain bullish on cryptocurrencies. CEO of MicroStrategy, Michael Slayor, has stated that he is still buying Bitcoin despite the crash. 

Michael Slayor

Other influencers like Kevin O’Leary, the shark tank investor, states that the recent crypto crash can bottom out the current crypto industry. Furthermore, O’Leary says that this crypto crash should be used as an important educational opportunity, making traders more aware of the risks involved when trading in digital assets. 

Your capital is at risk.

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