Musk Denies Owning Dogecoin in $260B DOGE Pyramid Case

Elon doesn’t identify as the mystified whale who sold off 1.4 billion Dogecoin tokens during the Twitter logo switch.

Elon Musk showing thumbs down in front of a confused Doge.
Created by Kornelija Poderskytė from DailyCoin
  • Elon Musk refutes claims that he’s the mysterious DOGE whale.
  • Dogecoin continued to trade in phased consolidation throughout last week.
  • Elon Musk tanks memecoin $BOB after calling out the associated AI bot.

The ongoing class-action lawsuit against the extravagant billionaire innovator Elon Musk continues as defense attorney Alex Shapiro refuted allegations that his client engaged in market manipulation and insider trading.

According to the lawsuit filed in Manhattan, The Dogefather sold off a colossal amount of 1.4 billion Dogecoin (DOGE) tokens, worth $124 million at the time. This happened right after the Twitter logo switched to Shiba Inu, the mascot of the top dog memecoin.

During the logo change, a massive bull run resulted in DOGE nearing $0.10 for the first time since the bull run inspired by Elon’s Twitter takeover. According to the lawsuit, one mysterious DOGE whale made the moves, grossing $124 million in profits. Musk maintains that this individual was not him.

The class-action suit also alleged that the CEO took part in a “deliberate course of carnival barking,” referring to the public endorsement of Dogecoin on CNBC’s Saturday Night Live Show and a flurry of dog-themed memes posted on social media.

At press time, DOGE is changing hands at $0.062, according to CoinGecko. With 1% weekly gains, $DOGE trades in phased consolidation above the key support level of $0.06. The coin has hovered above the long-term support line since October 25th, 2022.

Elon Fires Shots at Bob, the Memecoin AI Bot

Meanwhile, Elon Musk stirred up the crypto pot on Twitter by calling out the “Explain This Bob” AI bot linked to the $BOB memecoin. Indeed, Elon concluded that “this sure looks like a scam crypto account,” and Twitter suspended it shortly after. Affected by this move, the memecoin immediately tanked by 35%, later recovering some losses with a 10% spike.

Crafting answers on Crypto Twitter in a similar manner to ChatGPT, the chatbot had scooped up over 400,000 followers before the ban. Created by Prabhu Biswal from India, the bot is at the center of attention, as fans demand to bring BOB back via the #FREEBOB campaign, currently trending on Twitter.

At the time of publication, Bob Token (BOB) trades at $0.00001923, ranking just outside the TOP 800 by global market cap. The small-cap green human blob-themed memecoin lost 7.7% of its value in the last 24 hours, according to CoinGecko.

On the Flipside

  • The plaintiffs in the lawsuit assume that Dogecoin (DOGE) should be classified as a security, which is unconventional for Proofof-Work (PoW) blockchains.
  • The extravagant billionaire Elon Musk uttered “I Love Bob” On April 20th, 2023, while that tweet was used as the centerpiece of the memecoin’s official website.

Why This Matters

Memecoin projects are often influenced by social media hype.

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Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.