On June 16 it became known that Keith Johnson accused Elon Musk, Tesla, and SpaceX of financial fraud with Dogecoin and sued them demanding a payment of $258 billion. In particular, the plaintiff argued that “Defendants have been aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading.” “Musk used his pedestal as World's Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement,” he continued. In addition, the plaintiff requested that Musk and his companies ban promoting Dogecoin and a judge to declare that trading DOGE is gambling under federal and New York law.
So what happened? In fact, Johnson has sued Musk for openly stating that he likes Dogecoin and sees potential in its development. In other words, according to Johnson's logic, if Musk expresses his support for something, then he manipulates people, using his audience of millions on Twitter to promote it. It is currently unknown what evidence Johnson has provided to support Dogecoin being a fraudulent crypto coin with no real value, and that Musk, Tesla, and SpaceX are involved in a pyramid scheme. The only thing that is clear is that the investor, who failed to manage his money wisely and supposedly suffered losses on DOGE trading, is trying to blame another person who believes in this cryptocurrency for his losses.
Despite another unscrupulous person who tries to blame others for his failures in crypto investing, Musk emphasized that he continues to support Dogecoin. In addition, to the offer to continue buying crypto coins, he said that he was doing so.
I will keep supporting Dogecoin— Elon Musk (@elonmusk) June 19, 2022
I am— Elon Musk (@elonmusk) June 19, 2022
Observing Musk's several-years comments about DOGE, it is clear that he believes in the potential of the cryptocurrency and would like it to continue to develop despite its current imperfections. He is a longtime supporter of DOGE. The engineer believes that the meme coin is the best option for fast transactions. Musk explained that Bitcoin (BTC) is the main engine in the crypto market, but the volume of transactions is small and its cost is high. BTC can function as a store of value at its basic level, but is not suitable for daily use and the purchase of various goods.
Meanwhile, DOGE is better suited for transactions. The transaction flow of the coin is higher than BTC as it can process more transactions per day. Musk agreed that DOGE is slightly inflationary but argued that its inflationary number is fixed, and the percentage is not. With this theory, he believes the percentage of inflation decreases over time, encouraging people to spend DOGE instead of hoarding it as a store of value.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.