On Thursday, a Dogecoin investor sued Tesla and SpaceX CEO Musk,Request compensation of $258 billion from him, accusing him of implementing a "pyramid scheme" to manipulate the price of cryptocurrency.The prosecutor, named Keith Johnson, accused Musk and his Tesla and SpaceX companies of extortion in his lawsuit filed in the Federal Court of Manhattan, New York
On Thursday, a Dogecoin investor sued Tesla and SpaceX CEO Musk,Request compensation of $258 billion from him, accusing him of implementing a "pyramid scheme" to manipulate the price of cryptocurrency.
The prosecutor, named Keith Johnson, accused Musk and his Tesla and SpaceX companies of extortion in his lawsuit filed in the Federal Court of Manhattan, New York. He claimed that Musk and his company first spread rumors of selling dog coins, driving up their prices, and then causing them to plummet, thereby profiting from the situation.
Johnson's indictment states: "The defendants have known since 2019 that Dogcoin has no value, but they are still promoting Dogcoin and profiting from transactions. Musk used his position as the world's richest man to operate and manipulate Dogcoin pyramid scams to gain profits, increase exposure, and have fun for himself
Johnson's lawsuit seeks compensation of $86 billion,He stated that this is the amount that investors in Dogcoin have lost since Musk started purchasing and promoting Dogcoin in 2019,Plus a triple compensation of $172 billion.
Johnson also referred to Dogcoin as an "illegal telecommunications fraud enterprise" promoted and manipulated through Twitter. He asked the court to order that Musk be prohibited from promoting dog currency, and declared that trading dog currency was a gambling act according to federal and New York laws, and gathered Warren Buffett, Bill Gates and others' doubts about the value of cryptocurrency.
As of press release, lawyers for Tesla, SpaceX, and Musk have not responded to requests for comment.
How Musk "Pyramid Selling" Dog Coins
The cryptocurrency dog coin was founded by former IBM engineer Billy Markus and Adobe software engineer Akson Palmer in 2013. At that time, Doge's emoticons were popular on the internet, and Palmer, in order to satirize the speculative craze in the cryptocurrency market, co founded Dogcoin with Markus.
In just one week of its launch, Dogcoin has become the second largest tipping currency. People are usually willing to reward good jokes on the internet through electronic currency, and in the United States, where tipping culture is prevalent, this kind of thing is easily recognized.
In 2019, Musk entered the game and purchased a large amount of dog coins, frequently using his influence to promote dog coins on Twitter,Calling Dog Coin "the cryptocurrency of the people" and one's "favorite" currency, he has also released Dog Coin emoticons multiple times.
Every time Musk posts an article, the price of dog coins inevitably increases accordingly. He also personally tweeted that his SpaceX subsidiary would launch a satellite funded by Dogcoin.
Specifically, SpaceX will launch the "DOGE-1 Lunar Landing Mission" in the first quarter of 2022 and will accept cryptocurrency Dogcoin as the exclusive payment method for launching lunar satellites.
DOGE-1 is a cube satellite that will be launched with the Falcon 9 carrier rocket. Geometric stated that DOGE-1 will use its onboard cameras and sensors to capture "lunar space intelligence".
Of particular note, Musk also used a favorite line from American retail investors at the end of Twitter, creating a stunning pun: "Tothemoooooonnn
Musk called dog coins a "scam"?
According to Johnson's indictment, Musk's sale of dog coins began in May 2021.
Since Musk revealed in May last year that he was going to participate in 'Saturday Night Live', people have been enthusiastic and full of expectations, and dog coins have continued to remain high.
However, in the program, Musk played a fictional cryptocurrency expert. When the host asked him what the dog coin was, Musk replied, "It's just a scam." The dog coin plummeted in an avalanche, and its trading price fell by 38.6% at one point.
A Twitter user intercepted the market trend of Dog Coin at the moment Musk made the above statement: it fell by nearly 25%, with a price of about $0.55.
However, it is worth noting that even before the start of the program, Gougou Coin had already started its decline, falling by nearly 9% at that time.This is in stark contrast to Musk's reaction when he announced his participation in the program the day before: the 24-hour increase at that time was as high as 15%, with the price standing at $0.72.
At the official start of the live broadcast, Gougou Coin initially smoothed out the decline, but shortly after the broadcast, Gougou Coin began to plummet again, and the decline continued to widen, dropping nearly 34% at $0.49.
So, before the start of the live broadcast, what drove the dog coin down by nearly 9%? Who shipped the goods again?
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