- A judge has dismissed a lawsuit accusing Musk of Dogecoin manipulation and insider trading.
- Musk’s recent tweet boosts DOGE slightly, but market signals remain mixed.
In a long-running legal battle, Elon Musk and his electric vehicle company, Tesla, faced accusations of defrauding investors through the manipulation of Dogecoin [DOGE] and insider trading, leading to billions in losses.
Musk wins the lawsuit
However, as of the 29th of August, U.S. District Judge Alvin Hellerstein in Manhattan ruled in favor of Musk, dismissing the federal lawsuit.
For context, investors alleged that the world’s richest person exploited Twitter posts, a 2021 NBC “Saturday Night Live” appearance, and other high-profile stunts to manipulate DOGE’s market.
They claimed that through various Dogecoin wallets controlled by him or Tesla, he traded profitably at their expense.
Crypto community celebrates
Mocking on the move made by the judge, X (formerly Twitter) user Sir Doge of the Coin noted,
“The documents the judge submitted today dismissing Elon Musk’s insider trading case related to Dogecoin, which originally sought $258 billion in damages, are absolutely hilarious.”
Source: Sir Doge of the Coin/X
Joining the fray was MPAA, who added,
“A win for crypto!”
What’s more to it?
That being said, critics had also accused Elon Musk of manipulating DOGE’s price by boosting it by over 36,000% in two years before allowing it to crash.
They alleged that Musk and Tesla timed their trades with his public statements about Dogecoin, including a notable sell-off in April 2023 after X’s logo change boosted the coin by 30%.
Hellerstein argued that Musk’s assertions about Dogecoin being the future currency of Earth and its potential use for purchasing Teslas or being sent to the moon were,
“aspirational and puffery, not factual and susceptible to being falsified.”
Impact on Dogecoin
Given Musk’s influence and his win, many were curious about its potential effects on Dogecoin.
Needless to say, Musk’s recent tweets have historically propelled DOGE prices upward, and even the latest update showed a modest 1.49% increase in the past 24 hours, with DOGE trading at $0.1021.
However, the Relative Strength Index (RSI) remained below the neutral level, indicating persistent bearish pressure. Also, the MACD line’s proximity to the Signal line (orange) does not provide a clear signal.
Source: Trading View
This suggests that while Musk’s actions can impact Dogecoin, they are not the sole driver of its market movements.
That being said, although it is hard to predict whether DOGE will go to the moon or not, Musk’s lawyer Alex Spiro put it best in an emailed statement when he said,
“It’s a very good day for dogecoin.”
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