A dogecoin investor, whose value increased and dipped, has filed a $258 billion lawsuit against Elon Musk and his companies, Tesla and SpaceX.
Keith Johnson revealed he lost money after investing in dogecoin and described himself as an “American citizen who was defrauded” by what he labelled a “Dogecoin Crypto Pyramid Scheme.”
Johnson is asking for his motion that was filed in a New York court to be classified as a class-action suit on behalf of people that have suffered losses by investing in dogecoin since 2019.
According to him, since Musk started promoting dogecoin, investors have lost around $86 billion. He would like Musk to pay back investors this amount and pay double the amount in damages — an extra $172 billion.
Established in 2013, dogecoin’s founders say it was intended to be an ironic response to two big internet phenomena: cryptocurrencies like bitcoin, and a meme image of a Shiba Inu dog.
Since the existence of dogecoin, its price has traded at just fractions of a cent but its value rose at the beginning of 2021 and further rose to $0.73 in May of that year due to a buying frenzy that surrounded the GameStop issue and after funny messages about it from Musk.
Its value dropped below six cents recently.
Johnson revealed he believes Musk increased “the price, market cap and trading volume of Dogecoin” through his promotion of it.
He included tweets from Musk, the world’s wealthiest man who has over 98 million followers on Twitter, including a tweet promising that SpaceX would “put a literal Dogecoin on the literal moon.”
Musk’s Tesla electric carmaker was named in the suit since it accepts dogecoin as payment for some derivative products. Also, SpaceX was included for having named one of its satellites after dogecoin.
He likened dogecoin to a pyramid scheme as the virtual currency has no intrinsic value nor is it a product, is not backed by a tangible asset and the number of “coins” is unlimited.
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