Musk hit with new Dogecoin manipulation allegations
This is not the first time Musk’s tweets have moved Dogecoin markets
Elon Musk has reignited debates surrounding his influence on Dogecoin after posting a DOGE-themed meme on his social media platform.
The post, which depicted the meme coin’s DOGE mascot in a humorous scenario of taking over the world, caused Dogecoin's price to briefly surge before settling. Musk’s latest antics come amid fresh allegations of market manipulation, with critics questioning the extent of his impact on the cryptocurrency’s volatile value.
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There is a clear correlation between Dogecoin (DOGE), a well-known meme coin. After the meme was published, the coin's value rose to $0.4048, but has since shifted back to a bearish move.
A history of influence
This is not the first time Musk’s tweets have moved Dogecoin markets. Investors have long accused the billionaire of leveraging his social media reach to manipulate the meme coin’s price for personal or financial gain.
Just last week, Dogecoin investors withdrew a class-action lawsuit that alleged Musk had engaged in fraud and insider trading to manipulate DOGE prices since 2021. The lawsuit, which demanded billions in damages, claimed Musk’s promotional activities, including appearances on "Saturday Night Live," artificially inflated the coin's value, only for prices to crash later.
Critics weigh in
Critics argue Musk’s playful engagement with Dogecoin undermines the cryptocurrency's legitimacy and creates unnecessary volatility. They also point to the coincidental naming of the D.O.G.E. agency, a government initiative Musk chairs, as enabling plausible deniability amid these manipulation claims. Meanwhile, Musk has dismissed allegations as baseless, maintaining that his interest in Dogecoin stems from its potential to democratize finance.
While Musk’s latest Dogecoin meme continues to generate both excitement and skepticism, it highlights the broader debate over social media’s role in crypto market dynamics. Investors and regulators are now keeping a close watch on whether further legal actions emerge or if the meme coin’s ecosystem stabilizes in Musk’s shadow.
Reminder, Dogecoin fans cheer Elon Musk tweets 'D.O.G.E.'
