Elon Musk is continuing to support an overvalued cryptocurrency that was originally started as a joke. Musk has made millions by using his vast influence to lower Dogecoin''s price with as little as a simple tweet. A recent lawsuit accuses him of profiting from what he calls a pyramid scheme or a pump-and-dump. Elon says he will continue to support the altcoin.
Dogecoin was intended to be worthless. Its creator built in massive inflation. 10,000 new coins are made every minute. This has become an easy way for the wealthy to become rich.
Elon Musk has filed a lawsuit seeking $86 billion in damages because he is accused of manipulating the market by increasing the price of useless coins before selling them. This causes the price to drop, causing investors who bought based on Elons tweets to lose nearly everything. Elon took to Twitter today to double down on his support for Dogecoin.
Dogecoin will be kept in the works.
When one of Elon Musk''s followers told him to continue buying it, he stated that he will. Usually, when Elon tweets about or mentions the cryptocurrency, there is a spike in buying. This pump-and-dump mechanism is not regulated by any federal authorities, making it extremely difficult to stop this type of scheme.
Elon Musk has come out as a hardcore Republican. Musk wants less government involvement in complex operations like the crypto market, where he basically has a license to print free money and leave unducated fans holding the bag. For the time being, Musk is taking advantage while he can.