Elon Musk, the world’s richest man and self-proclaimed Doge Father, has declared his unwavering support for the leading meme cryptocurrency, Dogecoin.
Elon Musk to Keep Supporting Dogecoin
The Tesla CEO posted on Twitter earlier today: “I will keep supporting Dogecoin.” He also revealed in response to a user that he is still buying the memecoin.
As usual, DOGE reacted to the billionaire’s tweet, and the price surged by 11% from $0.052 to $0.058 despite the bearish market.
Musk’s declaration of his continued support for Dogecoin comes a few days after an American investor filed a $258 billion lawsuit against him and two of his companies, Tesla and SpaceX, for allegedly promoting DOGE and manipulating the price of the cryptocurrency.
I will keep supporting Dogecoin
— Elon Musk (@elonmusk) June 19, 2022
As reported, the plaintiff, Keith Johnson, described Dogecoin as a “crypto pyramid scheme” and alleged that Musk and his companies deliberately promoted it as a legitimate investment.
The plaintiff argued that the billionaire’s endorsement of Dogecoin led many people to invest in the cryptocurrency, which is currently down by more than 90% from its 2021 all-time high of $0.73.
Johnson is seeking $86 billion in damages from the billionaire and $172 billion for losses incurred from DOGE trades since 2019. He also wants Musk to stop promoting or endorsing the cryptocurrency.
Elon Musk: Dogecoin Rulz
Although Elon Musk wasn’t fully active in the crypto space until 2021, his first tweet about Dogecoin was in April 2019, when he shared a dog meme with the caption “Dogecoin rulz.”
In 2021, the Tesla CEO became one of crypto’s biggest influencers. Since then, when the billionaire speaks, crypto investors listen, and prices soar or plunge, depending on the bullishness of his tweets.
For instance, when Musk added Bitcoin to his Twitter bio in January 2021, the leading cryptocurrency gained 15%. Similarly, millions were wiped out of the crypto market when he announced that Tesla would stop accepting BTC payments due to environmental concerns in May of that same year.
After complaining about Bitcoin’s environmental impacts, Elon Musk became an avid supporter of Dogecoin. He started tweeting about the memecoin, and prices tend to react accordingly. Last month, the billionaire announced users could purchase Tesla merch using DOGE with SpaceX to follow soon. Dogecoin spiked 15% minutes after the announcement.
Ponzi Schemes to Child Abuse: Elliptic reveals how criminals use Dogecoin
On June 22, Elliptic Connect, a blockchain analytics provider specializing in cryptocurrency-based financial crime prevention, published an investigation showing that Dogecoin (DOGE), Elon Musk’s favorite cryptocurrency, is being used by criminals to commit illicit acts. According to Elliptic, Dogecoin has been used to finance frauds and Ponzi schemes as well as other serious crimes such…
On June 22, Elliptic Connect, a blockchain analytics provider specializing in cryptocurrency-based financial crime prevention, published an investigation showing that Dogecoin (DOGE), Elon Musk’s favorite cryptocurrency, is being used by criminals to commit illicit acts.
According to Elliptic, Dogecoin has been used to finance frauds and Ponzi schemes as well as other serious crimes such as terrorism and child sexual abuse material.
Elliptic identified Dogecoin transactions worth millions of dollars that were connected to illicit activity, including terrorist financing and sellers of child sexual abuse material (CSAM). https://t.co/a4x5pD1nuC#doge
— elliptic (@elliptic) June 21, 2022
Criminals Use DOGE Instead of BTC and ETH
Per Elliptic’s report, criminals have moved millions of dollars in DOGE through thefts, scams, and Ponzi schemes. These include Plus Token, in which $20 million in DOGE were seized, and another alleged $119 million DOGE theft in China connected to a Turkish Ponzi scheme.
However, even though millions of dollars are being moved through Dogecoin every day, most illicit activities aren’t as serious as terrorist financing or the buying of child sexual abuse material.
For example, for terrorism financing, the estimated value moved with DOGE amounts to just over $40,000, while for child sexual abuse material, the total is less than $3,000. This shows that criminals are using Dogecoin to evade authorities who have focused on other more established cryptocurrencies like Bitcoin, Ethereum, or Monero.
As for the darknet: Dogecoin can be accepted on several marketplaces such as Archetype which focuses on selling drugs. Just-Kill can be used to verify stolen credit cards or other organizations that encourage the illegal selling and buying of stolen goods and weapons.
Elliptic also reported an increased use of computer viruses or malware to steal Dogecoin wallets. However, it noted that the destination address for these funds had received almost $29,000, a minimal figure considering the millions of dollars in cryptocurrencies that have been stolen with similar tools.
No longer considered a Meme Coin
A curious fact is that, according to Elliptic, Dogecoin is no longer viewed as a meme currency thanks to the promotion that Elon Musk has made through his social media accounts, recalling that a few days ago, the electric car billionaire once again doubled down on his support for DOGE in the World Economic Forum.
And yet, even if indeed Dogecoin is being used for illicit activities, the reported figures are extremely small when taking into account its total value, which despite the drop, amounts to more than $8,353,034,906 according to CoinMarketCap.
Dogecoin Co-Creator Shares Thoughts about Current Crypto Climate
Jackson Palmer, one of Dogecoin’s founders, sees the cryptocurrency market as an environment where wealthy people are becoming more successful due to tax avoidance and scammed individuals. He believes the current market decline won’t last and regrets that crypto is near its end. Palmer is well-known as a crypto critic and his latest outburst shouldn’t…
Jackson Palmer, one of Dogecoin’s founders, sees the cryptocurrency market as an environment where wealthy people are becoming more successful due to tax avoidance and scammed individuals. He believes the current market decline won’t last and regrets that crypto is near its end. Palmer is well-known as a crypto critic and his latest outburst shouldn’t be surprising.
Even though Crypto is a Scam People Don’t Care
In 2013 the software engineer Jackson Palmer co-created one of the most popular memecoins – Dogecoin. The asset’s market value soared into billions years later. He claimed that cryptocurrencies had become an attractive feature to “shark-like fraudmers and opportunists “.
Last summer, Palmer went even further, labeling the digital asset sector as a “right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight, and artificial enforced scarcity.”
In a recent interview for the Australian media Crickey, he reiterated his anti-crypto stance. Palmer claimed that the current market collapse could not be classified as a “crypto Winter” because promoters are continuing to funnel money into it.
“They’re waiting for a fresh batch of fools to come in. This happens in rounds. You wait for a while for the collective memory of the world to forget about how much of a scam it is.”
Dogecoin’s Co-Founder wishes this was the end to crypto, since it is overrun by scammers and people who witness fraudulent activity but ask: “Do I really care ?”
Palmer also pointed out that many celebrities promote digital asset projects simply because they are paid to do so, and this can lead to misled investors.
The software engineer stated that one of the few positives in the space was the increase in skeptical voices since people started losing money. The bull run had benefited the majority, but they didn’t notice a Ponzi scheme.
Is Crypto Really That Bad?
Contrary the bashing manifest of Palmer, digital assets (especially bitcoin) offer certain benefits that are highly beneficial to the world today.
Bitcoin is, once again, decentralized (it’s not printed or controlled central banks), easy to access, and transparent. It could be used as an insurance against inflation in times of crisis, such as today. Unlike purchasing precious metals or properties, which are riddled with gatekeeping, investors could buy very small quantities of BTC (they can distribute $10, $100, or whatever amount they want).
It’s worth noting that many experts have highlighted the asset’s merits in the past few years. Billionaires Paul Tudor Jones and Chamath Palihapitiya believe it has emerged as an inflation hedge superior to gold. One of Apple’s inventors – Steve Wozniak – sees BTC as a mathematical phenomenon, while legacy investor Bill Miller opined its unique nature resembles the luxurious sports car Ferrari.
Even the world’s richest man – Elon Musk – argued that bitcoin and the altcoins might not be perfect but are “fundamentally better” than any other financial products.
Bitcoin Reclaims $40K, Dogecoin Soars 33% On Musk-Twitter News
After marking a multi-week low at $38,000, bitcoin went on the offensive and reclaimed $40,000. The altcoins are also well in the green today, with Dogecoin stealing the show following a 33% surge after the Elon Musk-Twitter news. Bitcoin Reclaims $40K The bears held almost total control of the market over the past few days.…
After marking a multi-week low at $38,000, bitcoin went on the offensive and reclaimed $40,000. The altcoins are also well in the green today, with Dogecoin stealing the show following a 33% surge after the Elon Musk-Twitter news.
Bitcoin Reclaims $40K
The bears held almost total control of the market over the past few days. It all started on April 21 when the asset was rejected at $43,000 after a few days of price increases.
In a matter of hours, the cryptocurrency dumped to $40,000 and even below that level on the following day. The situation worsened yesterday when BTC slumped to just over $38,000. This was the lowest price it had been since mid-March.
But, the bulls intervened and reversed the asset’s downward trajectory. Instead of heading further south, BTC started adding value fast and spiked above $40,000, where it’s currently situated. Consequently, bitcoin’s market cap has jumped to about $775 billion.
This came amid positive adoption news that Fidelity will allow investors to add BTC to their 401K accounts.
Dogecoin leads the Alts’ Rally
Although altcoins were just as bad as BTC yesterday’s, the current landscape is more bullish.
Ethereum found itself trading at $2,800 after several days of consecutive price dumps. Now, though, a 7% increase has pushed the second-largest cryptocurrency to just above $3,000.
Binance Coin and Solana were also beneath round-numbered milestones, but BNB now sits above $400, and SOL is north of $100.
Terra is just shy of $100 after an 8% daily increase. Ripple and Polkadot, Avalanche and Shiba Iu all show more gains.
Dogecoin is the best performer here, with a massive 33% surge. This came amid the confirmation that Elon Musk had indeed purchased Twitter, and given his favorable approach towards the first-ever memecoin, the price surge is not that big of a surprise.
Overall, the crypto market cap is up by over $100 billion in a day and sits close to $1.9 trillion.
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