The class action Dogecoin against Elon Musk concludes as the market takes off: all the details

After the accusations of market manipulation by Dogecoin investors, the class action against Elon Musk has concluded. It is emphasized that the agreement comes as DOGE records a significant increase in value.

Let’s see all the details in this article. 

Dogecoin investors withdraw the class action with the accusation of manipulation against Musk

A group of Dogecoin investors has decided to withdraw the class action filed against Elon Musk. 

The controversy, initiated in 2021, claimed that the magnate had deliberately influenced the price of the cryptocurrency through a series of public interventions and social media posts, causing damage to investors.

On August 29, the federal court in Manhattan had already dismissed a fourth amended complaint. However, new motions and appeals had been filed last month by both parties, in an attempt to resolve the situation. 

According to a report by Reuters, Thursday evening a joint motion was filed requesting the final approval of District Judge Alvin Hellerstein.

The lawsuit is based on the events of 2021, when Dogecoin experienced explosive growth. With the contribution of Musk’s frequent and provocative tweets, the price of the memecoin skyrocketed, rising from less than 10 cents to about 70 cents per token. 

Among the most influential moments is remembered Musk’s appearance on “Saturday Night Live” and his joking statements on Twitter, where he suggested that Dogecoin could become a standard currency or even be taken to the moon aboard a SpaceX mission.

Investors argued that these statements, along with other public initiatives, were part of a manipulation strategy. Some even accused him of exploiting his influence to gain economic advantages, accusing him of insider trading. 

However, Musk and Tesla have denied any involvement in suspicious activities or trading operations related to Dogecoin.

The surge in the price of Doge 

Judge Hellerstein, in his initial verdict, stated that Musk’s comments were not sufficient to support the fraud allegations, as he wrote in the decision on August 29: 

“These statements are overly optimistic and do not represent factual assertions, therefore they cannot be considered reliable by reasonable investors.”

Therefore, while the legal matter concludes, the price of Dogecoin continues to gain ground. DOGE is currently trading at about 0.36 dollars, doubling its value compared to the United States presidential elections on November 5. 

The cryptocurrency, created as a joke in 2013 by Billy Markus and Jackson Palmer, is now the sixth largest by market capitalization, with a total value of 53 billion dollars, according to data from The Block.

Curiously, the closure of the case coincides with the appointment of Musk as head of the new Department for Government Efficiency, an initiative of the Trump administration, nicknamed “DOGE”.

This new division aims at innovative reforms, adopting an entrepreneurial approach to improve the U.S. administrative structures.

Musk himself, on several occasions, has clarified that he is not a great expert in cryptocurrencies, but he has always shown sympathy for Dogecoin, as he stated in a recent interview: 

“I make jokes about Dogecoin because I find its spirit amusing. It’s a meme with dogs, and this entertains me.”

In any case, despite the end of the lawsuit, the interest in Dogecoin and its connection with Musk do not seem to fade, keeping the token in the spotlight and sparking discussion throughout the entire cryptocurrency ecosystem.