Summary of the Article
• Elon Musk is facing a $258 billion lawsuit from dogecoin investors claiming that he ran a pyramid scheme to promote the meme cryptocurrency.
• Musk’s lawyers argued that there was nothing unlawful about his tweets supporting and joking about dogecoin, which has a market cap of nearly $10 billion.
• The investors allege that Musk intentionally drove up the value of dogecoin by over 36,000%, only to subsequently let it crash.
Elon Musk Asks Judge to Dismiss Dogecoin Lawsuit
Tesla and Twitter CEO Elon Musk has asked a U.S. judge to dismiss a $258 billion lawsuit filed against him by dogecoin investors who alleged that the billionaire operated a pyramid scheme to promote the meme cryptocurrency dogecoin. In formal request filed Friday, Musk’s legal team described the lawsuit brought by dogecoin investors as „fanciful work of fiction“ concerning Musk’s „innocuous and often silly tweets“ about the meme cryptocurrency. They argued that there was nothing unlawful about tweeting words of support for or funny pictures about dogecoin, which has a market cap of nearly $10 billion.
Musk Denies Allegations
Musk’s lawyers disputed the DOGE investor’s assertion that dogecoin met criteria to be classified as security while noting chairman Gary Gensler’s opinion on all crypto tokens being securities except bitcoin may not be law. Evan Spencer, lawyer representing the dogecoin investors stated in an email: “We are more confident than ever that our case will be successful.“ The investors allege that Musk intentionally drove up the value of dogecoin by over 36,000%, only to subsequently let it crash.
Risks Involved with Promoting Dogecoins
Although there is no law prohibiting people from promoting cryptocurrencies like Dogecoins, investing in such digital currencies can be risky business since they are highly volatile in nature and can crash quickly if there is unfavorable news or developments related to them. Moreover, promoting something without disclosing any risks involved could also lead to trouble if someone takes advantage of this disclosure gap and loses money due to their investment based on your promotional activities or endorsements.
Overall, while there may not be anything wrong with Elon Musk tweeting out his support for Dogecoins or other cryptocurrencies, it is important for people engaging in such activities understand potential risks associated with them before doing so – both legal ones as well as those related with investments themselves which can result in losses if things don’t go according to plan for whatever reason(s).