Once again, Elon Musk, CEO of Tesla Inc., caused a significant surge in Dogecoins valuation with a single tweet, reports Fortune.
The Power of a Tweet: Musk, known for his fondness for memes and dogs, on Wednesday, tweeted a meme featuring the cartoon character Scooby-Doo with the caption Doges ftw [for the win].
This led to a rapid increase in the value of Dogecoin DOGE/USD , a cryptocurrency based on the Doge meme. In just 15 minutes, the market capitalization of Dogecoin rose by 3% (about $320 million) from $9.64 billion to $9.96 billion.
Musks Influence on Dogecoin: This is not the first time Musks tweets have significantly impacted the value of Dogecoin. In February, he created $500 million bump in valuation for the coin with a picture of his dog. In April, he changed Twitters logo to the Doge meme, causing a more than 20% increase in the cryptocurrencys value.
Musk has often publicly expressed his fondness for Dogecoin, stating at a conference in May that it is his favorite cryptocurrency because it has the best humor and it has dogs.
See Also: Elon Musk Drops Clues About Teslas Potential Partnership With Major Automaker To License Self-Driving Technology
Legal Implications: However, Musks influence over Dogecoin has also led to legal issues. A group of Dogecoin investors filed a class action lawsuit demanding $258 billion in damages from Musk, alleging that his tweets and comments about the token amount to market manipulation.
Musks lawyers have dismissed the suit as a fanciful work of fiction over his innocuous and often silly tweets.
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