DOGE Surges High as Elon Musk Requests $258B Dogecoin Lawsuit Be Dropped

DOGE Surges High as Elon Musk Requests $258B Dogecoin Lawsuit Be Dropped

April 3, 2023

Dogecoin, the world’s largest meme cryptocurrency by market capitalization, soared to a five-week high of $0.085 Sunday after Elon Musk’s lawyers requested a Manhattan court to dismiss a $258 billion lawsuit filed by DOGE investors against the billionaire.

During a court session on Friday, Musk’s lawyers described the lawsuit as a “fanciful work of fiction” designed to paint Musk in a bad light and extort him by using his “innocuous and often silly tweets” about Dogecoin. The lawyers further argued that Musk’s accusers had failed to demonstrate how the Tesla boss intended to defraud anyone adding that previous assertions such as “Dogecoin Rulz” and “no highs, no lows, only Doge” did not hold any water concerning the fraud claim.

“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion,” Musk’s lawyers said. Additionally, the lawyers objected to a claim that Dogecoin qualified as a security. 

Musk was sued last June after the investors accused him of running a pyramid scheme to support the meme cryptocurrency, in the process pumping its price more than 36,000% over two years and then causing it to crash. The plaintiffs further argued that they lost their investments due to the “Defendant’s false and deceptive claim that Dogecoin is a legitimate investment when it has no value at all”

Meanwhile, in an email sent to Reuters, Musk’s’ lawyer, Evan Spencer, expressed confidence in a win noting that “we are more confident than ever that our case will be successful.”

That said, despite the lawsuit, Musk has remained unshaken, with his support for the cryptocurrency growing even stronger. After the lawsuit was filed, Musk tweeted that “I will keep supporting Dogecoin” adding that he was also buying it. Musk has been a strong supporter of the Dogecoin ecosystem, often preferring it over other others including Bitcoin. Previously, the billionaire had urged contributors to share their ideas to improve Dogecoin, expressing his willingness to accept Dogecoin as payment for services beyond Tesla and SpaceX merchandise.

On the other hand, investors have continued accumulating the cryptocurrency, with data from Santiment indicates that addresses holding over 10M DOGE have accumulated 1.47B in coins since Jan. 1st worth $123.1M.

At press time, DOGE was trading at $0.079, up over 8% in the past 48 hours. After breaching key resistance of $0.07800, the price seems to be headed to retest that area, which could trigger a 20% upswing towards $0.093, according to crypto analyst “Ali Charts”.

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