Elon Musk actively supported the leading meme coin, Dogecoin (DOGE), throughout the previous cycle – from 2020 to the 2021 top. For over two years, DOGE’s price action closely followed Musk’s related posts on Twitter, positively reacting to the billionaire’s memes.
However, things are apparently changing in the cryptocurrency world, with Dogecoin remaining neutral after a recent post on September 7. Elon Musk posted an artificial intelligence (AI)-generated picture saying D.O.G.E. on X (formerly Twitter).
In this case, Dogecoin’s exchange ticker is an acronym for the “Department of Government Efficiency,” a title Donald Trump promised Musk if he is elected president of the United States in November. Trump has regained his leadership against Kamala Harris on prediction markets, as Finbold reported.
Despite an observable recovery in the daily chart from a price bottom – that affected the entire market – DOGE is behind. For example, looking at CoinMarketCap‘s “Top Gainers,” we can see Starknet (STRK), Sui Network (SUI), Optimism (OP), JasmyCoin (JASMY), and Uniswap (UNI) leading with gains that go from 3.39% to 11.66% in the same period.
Therefore, Elon Musk’s public comments and direct or indirect mentions of DOGE are not influencing its price as before.
Elon Musk and Tesla lawsuit related to Dogecoin (DOGE) price manipulation
Interestingly, Judge Alvin Hellerstein recently dismissed a price manipulation lawsuit from Dogecoin investors against Elon Musk and Tesla (NASDAQ: TSLA). Hellerstein responded to it, saying Musk’s statements used to accuse him of manipulation should not be taken seriously.
“These statements are aspirational and puffery, not factual, and susceptible to being falsified […] and no reasonable investor could rely upon them.”
– Judge Alvin Hellerstein
Investors opened the lawsuit in June 2022, accusing Elon Musk of publicly manipulating Dogecoin’s price, causing $258 billion in damages. According to the documents, the class action claimed DOGE surged by 36,000% due to the billionaire’s influence, crashing later.
Nevertheless, whether true or not, these days could be over, with the dog-themed cryptocurrency failing to move after the post. This signals a potentially more mature market, not blindly following influential figures up and down.
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