The Dogecoin meme cryptocurrency has surged after Elon Musk, CEO of Tesla (NASDAQ:TSLA) and SpaceX, expressed support for it, just days after a class action lawsuit was filed against him alleging his manipulation of the Dogecoin price. Both companies and Musk himself were named as defendants in the lawsuit, Yahoo writes.
According to CoinMarketCap, Dogecoin jumped almost 28% from a low of $0.0492 on Saturday evening.
The cryptocurrency has once again received the support of Elon Musk in addition to the general recovery of cryptocurrencies. The head of Tesla wrote on Twitter on Sunday morning:
“I will continue to support Dogecoin.”
The previous drop in DOGE over the past 7 days to $0.04972 was caused by the general onset of a broad “bearish” cryptocurrency market and a lawsuit against Musk.
The class action lawsuit alleges that for 3 years, Musk participated and profited from the manipulation of the BTC price. The amount of compensation required by the plaintiffs is $86 billion and another $172 billion in triple damages from Musk, Tesla and SpaceX, since both he and his companies participated in a “cryptopyramidal scheme”, inflating the price for something that has no fundamental value.
The lawsuit also claims that Musk’s public statements and tweets have a direct impact on DOGE.
Musk has been an influential Dogecoin supporter since 2019, when he started writing on Twitter (NYSE:TWTR) about digital memo tokens, and later allowed the use of cryptocurrencies to buy Tesla products, which really correlated with price increases.
However, it has not always exerted an exclusively “bullish” influence on the cryptocurrency market. For example, Musk jokingly called them “vanity” in a parody of the show “Saturday Night Alive” in May 2021, which caused a 40 percent collapse of the cryptocurrency.
And while Musk hasn’t said anything about Dogecoin on Twitter lately, his joining that company’s board of directors in April also correlated with the rise in DOGE prices when he offered to buy Twitter.
nevertheless, after a long fall in the exchange rate of other cryptocurrencies, the market has gradually stabilized and now many digital assets are showing growth. The bitcoin exchange rate rose above $20 thousand per unit again, while on the weekend it dropped to about $17,600. At the moment, the most popular cryptocurrency in the world is trading around $20,621 per coin.
At the same time, Ethereum, whose value fell to $880 over the weekend, is now trading around $1,123 per coin. The progress of many other popular digital assets looks similar. According to CoinDesk, over the past day, XPR increased by 4.49% to $0.32 per unit, Solana increased in price by 12.35% ($33.84), and Cardano — by 5.77% ($0.48)