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Elon Musk’s admiration for Dogecoin DOGE/USD is no secret. Every time the billionaire and Dogefather tweets about the meme coin, it creates a surge in its value.
What Happened: On June 16, 2022, a class action lawsuit accused Musk of running a crypto pyramid scheme — also known as a Ponzi Scheme — using Dogecoin.
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“It’s not backed by gold, or other precious metal, or anything at all. You can’t eat it, grow it, or wear it. Dogecoin does not generate cash flow. It doesn’t pay interest or a dividend. It has no unique utility compared to other cryptocurrencies. It is not part of a new internet or metaverse. It’s not based upon or tied to anything of value,” the introduction of the case said.
In addition to suing Musk, the complaint also names Tesla and SpaceX as defendants — both companies are headed by Musk, reported The Hill.
The plaintiff, Keith Johnson, reportedly wants Musk and his companies to halt promoting the meme coin and a declaration that Dogecoin trading is gambling under U.S. and New York law.
Since the time of the lawsuit, DOGE has seen an 18.2% increase in its value — from $0.055 to $0.065. That means a $100 investment in DOGE at the time of the lawsuit would now be worth $118.20.
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Image and article originally from www.benzinga.com. Read the original article here.