Elon Musk is continuing to pump up the price of an overvalued cryptocurrency that was originally started as a joke. Musk has made millions by using his vast influence to increase the price of Dogecoin with as little as a simple tweet. A recent lawsuit accuses him of profiting from what is effectively a pyramid scheme or a pump-and-dump. Elon says he will continue to support the altcoin.
Dogecoin was designed to become worthless. Massive inflation was built in by its creator. 10,000 new coins are made every minute. What started as an online joke has become an easy way for the rich to get richer.
The recent lawsuit is seeking $86 billion in damages from Elon Musk. The Tesla boss is accused of manipulating the market by driving up the price of the worthless coins and then selling them. This causes the price to crash, causing the inexperienced investors who bought based on Elon’s tweets to lose nearly everything. Elon took to Twitter today to double down on his “support” for Dogecoin.
“I will keep supporting Dogecoin”
When one of Elon Musk’s followers told him to keep buying it, he indicated that he will. Typically, 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.
It’s no wonder Elon Musk recently came out as a hardcore Republican. Musk wants less government interference in things like the crypto market, where he essentially has a license to print free money and leave uneducated fans holding the bag. Time will tell if anyone ever does a thing to put a stop to the practice, but for now, Musk is taking advantage while he can.
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