Elon Musk sued over alleged Dogecoin price manipulation

Tesla CEO Elon Musk is accused of insider trading in connection with Dogecoin (DOGE).

Elon Musk, CEO of Tesla and SpaceX, is accused of alleged insider trading and price manipulation related to Dogecoin (DOGE). As Reuters reports, the founder of SpaceX is due in court to face investors, whose alleged price manipulation would have cost him billions of US dollars.

Elon Musk and the price of Dogecoin (DOGE)

Reuters reports that a lawsuit was filed Wednesday night in Manhattan alleging that Musk used Twitter posts, paid influencers, his appearance on Saturday Night Live and similar appearances to artificially inflate the price of Dogecoin (DOGE).

The complaining investors also accused Elon Musk of selling $124 million of Dogecoin in April this year after he allegedly swapped the Twitter logo with the Dogecoin logo, which eventually led to a sharp rise in price of Dogecoin.

The Tesla founder and crypto

However, observers should not really be surprised by the lawsuit. After all, it had been possible for some time to observe how Elon Musk had seemingly effortlessly artificially inflated the price of Dogecoin (DOGE) through Twitter messages and with similar public statements.

There are few understandable reasons for Elon Musk's enthusiasm for the so-called Memecoin "DOGE." After all, the coin was designed as a fun coin with no real utility. Conversely, this means that we are dealing with a purely speculative object.

Whether the price of Dogecoin (DOGE) will be affected by the lawsuit remains to be seen. So far, the price has been unimpressed with daily gains of 0.0072 and 0.76 percent.