Billionaire and X owner, Elon Musk, today posted a meme depicting Doge. Although he directly mentioned the Bureau of Government Effectiveness, the meme asset Dogecoin has also seen a slight increase in a short period of time.
Is Musk intentionally pushing up the price of DOGE through these seemingly unrelated tweets? A recent class action lawsuit against him directly addresses this possibility.
Elon Musk and DOGE
Today, there seems to be a clear connection between Dogecoin (DOGE), a prominent Meme Coin, and billionaire Elon Musk’s social media activities. Previously, DOGE had been trending slightly down until he posted one meme focus on doge.
This meme directly references Musk’s Department of Government Effectiveness (DOGE), yet the coin’s value still increases.
This DOGE price increase appeared to be temporary, but still caught everyone’s attention. The obvious question arises: is Musk intentionally trying to prop up the price of DOGE?
On many recent occasions, the value of this Meme Coin has increased following Musk’s social media posts. In September, he explicitly posted about DOGE, which also promoted this unrelated Crypto asset.
Ultimately, understanding Musk’s intentions with his post is impossible. Recently, all of Musk’s Doge-related statements have mentioned the political project, not the Cryptocurrency asset. If he was trying to increase the value of this Meme Coin, it was not very successful: the increase stopped and decreased within just a few hours.
However, there is another reasonable explanation for this behavior. Last week, Dogecoin investors withdrew their class action lawsuit against Elon Musk over this same issue. These investors accuse Musk of intentionally manipulating the price of DOGE since 2021, denouncing fraud and insider trading.
“Elon Musk actually named a government agency ‘Doge’ so he could post about it whenever he wanted, without getting in trouble,” says X account ‘Sir Doge of the Coin’ said.
Musk has been a meme enthusiast certification and there may be a Doge preference independent of this property or institution. Anyway, the foundational meme exist since 2013 and may exist outside of both of these contexts.
However, if Musk has been accused of illegally manipulating the price of Dogecoin with his posts, then the name DOGE could be an easy solution. By naming the agency like that, Musk will have a reasonable excuse to deny that he is not talking about Crypto assets. Whether or not Musk is signaling to DOGE traders, there is no way to clearly determine his true intentions.