Dogecoin, Elon Musk’s “Ponzi Strategy”

His barking no longer makes you laugh – In the cryptosphere, it is well known thatElon Musk regularly posts memes on Dogecoin (DOGE). The whimsical billionaire even allowed the purchase in DOGE on the shop of merchandising from Tesla. But obviously, the promotion of this memecoin does not seem to please some investors at all. The latter, feeling aggrieved, frankly open a complaint against Elon Musk.

Dogecoin, a crypto-joke transformed into a “Ponzi pyramid”?

These last years, Elon Musk has often presented Dogecoin as his favorite cryptocurrency. Even in front Bitcoin (BTC)in which his company You’re here had yet invested $1.5 billion in February 2021.

With a course of DOGE who went from $0.73in May 2021, only $0.06 as of this writing, many have lost their feathers there. But instead of attacking the too devastating smile of the friendly Shiba dog in the Dogecoin logo, it is indeed Elon Musk who finds himself today as a target investors of this memecoin.

As the reports including The Block, a collective complaint filed in the Court of the Southern District of New York bluntly denounces the billionaire and his companies. They would be the main responsible of their setbacks.

“Each statement and endorsement by the defendants [Elon Musk, Tesla, SapceX] on social media regarding Dogecoin have knowingly led millions of people to spend billions of dollars buying the crypto pyramid scheme that is Dogecoin. »

Excerpt from the class action

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The DOGE would have “no value”, but they ask for 258 billion $!

The accusers want to extract as much money as possible from Elon Musk and his companies. So they ask $86 billion damages, plus $172 billion treble damages. Totaling $258 billion.

Despite the warnings (bashings?) hammered home by the mainstream media on the volatility and the risks inherent in the very young crypto asset class, these investors seem to have placed absolute trust in the word of Elon Musk:

“Defendants knew since 2019 that Dogecoin had no value and yet they promoted Dogecoin to profit from trading it. (…) Musk used his pedestal as the richest man in the world to operate and manipulate the Dogecoin pyramid scheme for his profit, enhancement and amusement. »

Excerpt from the class action

All you have to do is type “Dogecoin” into Google. We then know immediately that this cryptocurrency was created, from the base in 2013, as a crypto-joke. A kind of parody amusing (even satirical) bitcoin, with a sympathetic dog head as a logo.

If this cryptocurrency, which is the embodiment of memecoinhas survived all these years, it is undoubtedly thanks to his community. It is also the latter that makes Dogecoin not, in truth, “no value”. Even Bitcoin skeptics like Mark Cuban find use in DOGElike money good to be spent (and not spared, like BTC). But from there to invest in it speculatively hoping to be “rich to millions quick” : it is not at all the same thing.

Who could blame you for raising a questioning eyebrow in the face of the latest escapades of the crypto-doggie? You prefer to be interested in Bitcoin rather than Ethereum, do not hesitate to register on the benchmark crypto exchange FTX. A lifetime reduction on your trading fees awaits you there thanks to the JDC affiliate link.

Dogecoin, Elon Musk’s “Ponzi Strategy” – New Class Action Against Tesla CEO