Elon Musk Accused of Profiting from the Manipulation of Dogecoin
The most recent Elon Musk & Dogecoin (DOGE) Twitter excitement has directed attention to a mysterious wallet that was formerly responsible for the custody of $24 billion in DOGE. (1)
On April 3, the boisterous CEO of Tesla replaced Twitter’s logo with the Dogecoin logo, immediately triggering a bullish jump in cryptocurrency prices.
The price of DOGE has increased by nearly 30%, moving from $0.07 to $0.09, on the back of rumors that the coin may become a payment option on Twitter.
Speculators who say they lost money on Dogecoin due to Elon Musk’s behavior on social media have asserted that Musk is the owner of the mysterious wallet.
These investors have filed a class action lawsuit against the billionaire, asserting that the wallet they have referred to as DH5ya is actually Musk’s personal wallet.
The plaintiffs based their allegations on “knowledge and belief,” which stated that Elon Musk created the Dogecoin wallet in 2019.
These charges lend credence to a conjectural tweet published by an on-chain expert in November of last year, in which they claimed that Musk controlled DH5ya.
Who is the owner of the largest holder of #DogeCoin?
Even though @bitinfocharts tagged $DOGE's largest holding address as “Robinhood”, I still think it's Elon Musk's address.
Here is some evidence. pic.twitter.com/j0nl4c4FOQ
— Lookonchain (@lookonchain) November 1, 2022
A class action lawsuit Links Elon Musk and a Dogecoin
In the class action case that was filed in the federal court in New York, the plaintiffs pointed out that there are ‘hints’ in DH5ya’s activities that link it to Musk.
One example of such a hint is that Musk’s wallet carried out a DOGE transaction with the number 28.061971; this number represented Musk’s birthday on June 28, 1971.
In addition to this, the lawsuit asserted that the phrase “Hello Elon” was typed out in another transaction that DH5ya handled.
Nonetheless, a third transaction contained 80085 coins, which can be decoded to create “BOOBS,” a term that exemplifies the crude humor that the millionaire is known for.
According to the plaintiffs’ allegations, DH5ya was responsible for six transactions totaling 69 coins and two transactions totaling 420 coins combined.
Nevertheless, the CEO of Tesla refuted the charges and insisted that DH5ya is a part of the diversified financial services network Robinhood. Robinhood did not confirm or deny if it owns the formerly wealthy cryptocurrency wallet. Instead, the company chose not to comment.
The DH5ya wallet contained $24 billion worth of DOGE in May 2018, however, as of this now, it only has a little more than 50,300 DOGE, which is worth $5,000.
At the moment, the market capitalization of Dogecoin is $13.7 billion, placing it among the top 7 cryptos in terms of market capitalization.
The dog-related token currently ranks slightly lower than Cardano (ADA) and Polygon (MATIC), but it is only slightly lower than the value of Ripple coin (XRP).
Other canine-themed cryptocurrencies, like Shiba Inu (SHIB) and Dogelon Mars (ELON), benefited from the positive momentum of DOGE.
Shiba Inu (SHIB) increased by 6.7%, and Dogelon Mars (ELON) increased by 10%. In addition, Floki (FLOKI), another one of Musk’s favorite companies, witnessed a significant boost of 14%.
Accusations of Manipulation of the Dogecoin Price by Musk
The long-standing allegations that Musk, as CEO of Tesla, artificially inflates cryptocurrency values are given new life by his choice to replace the Twitter logo with that of Dogecoin.
For example, the trajectory of the price of DOGE has a lengthy history of being susceptible to the acts of Musk.
The billionaire’s relationship with cryptocurrency is at the center of the class action complaint.
Buyers of Dogecoin who are unhappy with the cryptocurrency claim that its creator, Elon Musk, is running a pyramid scheme by spreading positive publicity about it. The complaint stated in part,
“After the unveiling and ICO of the dogecoin investment, Musk had become the leader of this multi-billion-dollar racketeering enterprise.
This multi-billion-dollar racketeering enterprise intentionally exploited the industry to raise the cost of Dogecoin from $0.002 to $0.73 in two years, a rise of 36,000%.”