Did Musk involved in a pyramid scheme?

According to paperwork submitted to Manhattan federal court, Elon Musk has asked for the $258 billion Dogecoin lawsuit he is up against to be dismissed. The plaintiffs contend that Musk promoted a pyramid scheme using Dogecoin and make claims of wire fraud and gambling. In this case, Musk is charged with purposefully inflating Dogecoin’s price by more than 36,000% for two years and then allowing it to plummet. They said that despite Musk knowing the currency had no inherent worth, this created billions of dollars in profit at the cost of other Dogecoin investors.

The lawsuit aims to provide an answer to that query. According to the plaintiffs, Musk engaged in a pyramid scheme by leveraging his influence and tweets to drive up the price of Dogecoin before selling it for a profit, leaving other investors holding the bag. Three times the anticipated drop in Dogecoin’s market value during the 13 months before the lawsuit’s filing, or $258 billion, is what they are asking for in damages. The claim is refuted by Musk’s attorneys, who maintain that he was only expressing his humor and support for a real cryptocurrency that is not an unregistered security. They have argued that the case is a “fanciful work of fiction,” and requested the judge to dismiss it.

Musk has a history of using his tweets and remarks to affect the price of Dogecoin. Other reports claim that Musk’s statements are to blame for Dogecoin’s price increase of much to 84% in a single day. “One word: DOGE,” “Dogecoin Rulz,” “Who let the Doge out,” and “Dogue” are just a few of his tweets. At one point, he also modified his Twitter bio to read #bitcoin, which caused the prices of both Bitcoin and Dogecoin to rise. Some have hypothesized that Musk’s tweets are part of a plan to advertise Dogecoin as a respectable cryptocurrency and to divert attention from his lawsuit. Some, on the other hand, contend that Musk is only having fun while endorsing Dogecoin, which he has referred to as “the people’s cryptocurrency.”

On April 3, 2023, Elon Musk changed the Twitter bird emblem to a doge as a joke. Dogecoin is a cryptocurrency that adopts the doge meme as its logo. According to some stories, Musk reportedly altered the logo to encourage Dogecoin and raise the coin’s price, which increased by 20% as a result of the move. Others assert that Musk did not want to influence the market and was simply having fun.