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- Elon Musk has won a lawsuit that requested him to pay $258 billion in damages for allegedly manipulating the Dogecoin (DOGE) market.
- According to the Judge, the complainants’ interpretation of Musk’s social media activities is unfounded.
Tesla’s Elon Musk has officially been cleared by U.S. District Court Judge Alvin Hellerstein after a two-year-long legal battle between a group of Dogecoin (DOGE) investors and the billionaire.
In 2022, the investors filed a lawsuit against Musk and his company, Tesla, for allegedly defrauding them through a series of manipulative tweets. In one of their appearances at the Manhattan federal court in 2023, the investors pointed out that Musk paid online influencers, and also used his appearances on NBC’s “Saturday Night Live” shows to promote Dogecoin, inciting demand to push the price up while raking in profit at their expense through his multiple Dogecoin wallets he or Tesla controls.
As part of their arguments, the investors cited an instance when Musk replaced Twitter’s (X) blue bird logo with Dogecoin’s logo, pushing the price up by 30%. After this move, the Tesla CEO sold about $124 million worth of Dogecoin in April. In all, Musk was accused of deliberately driving the DOGE’s price up by more than 36,000% over two years and allowing it to crash. This accusation was also captured in the proposed third amendment complaint in a lawsuit that started in June 2023.
In March, Musk and Tesla requested for dismissal, claiming the second amended complaint is a “fanciful work of fiction”. Responding to the third one on May 26, the defendants argued that the claims were unjustified.
Musk Wins Case, Will X Integrate Dogecoin?
On August 29, the court dismissed the case which sought $258 billion in damages from Musk as we reported earlier. In his ruling, Judge Hellerstein made specific reference to the plaintiffs’ interpretation of Musk’s social media tweets. According to the court, these tweets in question were mischaracterized by the complainants. On top of that, he stated that “no reasonable investor” would make investment decisions based on those tweets.
These statements are aspirational and puffery, not factual, and susceptible to being falsified.
Following this victory, Doge enthusiasts have channelled their focus on the integration of the meme coin into X. Last year, Musk publicly announced that he would transform X into an “everything app”. Later, an X user identified as Swak, known for leaking upcoming features disclosed that the payment features are in development. While no direct mention has been made of Doge in the ongoing development, Musk’s recent declaration of having a soft spot for the meme coin has ignited hope.
Amid the backdrop of this exciting news, an analyst identified as Kenobi has predicted that Dogecoin could hit $6 by 2025. According to our analysis, Kenobi’s prediction is based on the fact that the asset has been “erasing a zero” every four years. Another look into his theory shows that DOGE may not delete a zero until after 2026 since it already “killed” one zero in this cycle.
At press time, DOGE was trading at $0.10 after declining by 9.9% in the last seven days.
