Recently, Musk was sued by a Dogecoin investor, suing Musk for deliberately implementing a "cryptocurrency pyramid scam" on Twitter, demanding that Musk pay $258 billion, or about 1.7 trillion yuan.
Musk is sued for $1.7 trillion in claims
The prosecutor, named Keith Johnson, in his indictment filed in federal court in Manhattan, New York, accused Musk, his Tesla and SpaceX companies of extortion, "Musk and his company first went around promoting Dogecoin, pushing up the price, and then letting its price plummet and profit from it." ”
"Musk has known since 2019 that Dogecoin has no value, but hyped up and profited from the deal, using his position as the world's richest man to operate and manipulate the Dogecoin pyramid scheme for profit and exposure for profit and exposure, and taking pleasure in it," the prosecutor said. ”
Year-to-date, Dogecoin can be described as a "dog belt", the price has plummeted, and investors have wailed. Market data shows that as of the afternoon of June 17, the price of Dogecoin was $0.057, compared with the high of May last year at $0.74, a decline of up to 92% during the period.
In addition, according to Tesla's financial report, as of the end of the first quarter of 2020, the fair market value of Tesla's holdings of bitcoin was $2.48 billion. It is reported that Tesla bought $1.5 billion in bitcoin in early 2021, the price is about $35,000 / coin, while the current price of bitcoin is only about $21,000 / coin, which shows that Musk has also been "trapped".
"Bring goods" Dogecoin profits from it?
According to reports, the cryptocurrency Dogecoin was founded in 2013 by former IBM engineer Billy Markus and Adobe software engineer Axen Palmer. At that time, the Shiba Inu Doge memes were popular on the Internet, and Palmer co-founded Dogecoin with Markus in order to satirize the speculative fever of the cryptocurrency market.
Although it was issued to satirize digital currencies, it is surprising that it quickly became popular in the electronic currency community after its release, and its market value soared.
Some analysts believe that the reason for the surge in Dogecoin is indispensable to Musk's "cargo", and Musk calls himself the "Godfather of Dogecoin".
In 2019, Musk entered the Dogecoin market, and after a large number of purchases, he used his influence to frequently promote Dogecoin on the Internet, calling Dogecoin the "people's cryptocurrency" and his "favorite" currency, and also released Dogecoin emojis many times.
According to reports, on Tesla's North American official website, many products can support Dogecoin payment. In January, Musk said on social media that some tesla merchandise began to accept Dogecoin purchases. After that, Dogecoin rose 800% in 24 hours to $0.07 per coin.
Then, on April 16 this year, Musk posted a "dog barking at the month" chart on the Internet, and Dogecoin rose by more than 200% during the day, and then rose 500% in the next 5 days. In just one year, Dogecoin has risen about 200 times.
Market analysis believes that the popularity of Dogecoin obviously relies on the endorsement of a few celebrities such as Musk, and it is no longer a "decentralized" niche payment currency, but an "air coin" full of idolatry and lacking practical value.
Some netizens said that once the case is won, it may become a straw that crushes Bitcoin.
The digital currency market continues to plummet
In May this year, the stablecoin TerraUSD and Luna coin collapsed, coupled with the recent Fed's continuous interest rate hikes "water collection", the "avalanche" of cryptocurrencies is coming?
As of the afternoon of June 17, the latest price of Bitcoin was about $20,958 per coin, and since June 9, Bitcoin has fallen for 9 consecutive days, the longest consecutive decline since 2014. The current price, compared to the high of $69,000 per piece last November, has fallen by 70%. The current price of Ether is $1094 per coin, which is about to fall below the $1000 mark.
In the early morning of June 16, Beijing time, the Federal Reserve announced that it would raise the target range of the federal funds rate by 75 basis points from 0.75% to 1.50%-1.75%, in line with market expectations. The 75 basis points represent the Fed's largest single rate hike since November 1994 and the Fed's largest rate hike in 28 years.
Market analysis believes that with the changes in the macro environment, digital currencies, which represent speculative investments and asset classes that rely heavily on monetary stimulus, will continue to be abandoned. Market forecasts suggest that investors' losses will accelerate once some key thresholds are breached.
BitMEX co-founder Arthur Hayes said: "If Bitcoin breaks through the key threshold of $20,000 and Ether breaks through the key threshold of $1,000, we can expect the spot market to face huge selling pressure as traders hedge." ”
According to media reports, Biance founder Zhao Changpeng topped the chinese richest man with a net worth of nearly $96 billion at the end of last year, and now his net worth has only 10.2 billion US dollars, and his wealth has evaporated by nearly 89%, which is called "returning to poverty overnight" by netizens.
The arrival of the "Lehman Crisis" in the currency circle?
On Monday, cryptocurrency lending giant Celsius announced that it would suspend all withdrawals, swaps and transfers between accounts "due to extreme market conditions."
According to the company's official website, as of May 17, the company had assets worth $11.8 billion. The analysis believes that although it is significantly lower than the more than $26 billion in October last year, Celsius is still regarded by investors as a cryptocurrency bank in terms of scale.
According to media reports, Celsius has a position in the industry that cannot be underestimated, claiming to have 1.7 million customers and advertising to users that they can get a yield of 18% through the platform. Users deposit their cryptocurrencies in Celsius, which is then lent to institutions and other investors, and then users reap the benefits of the income earned by Celsius.
The incident also caused investors to worry about the liquidity of the digital currency market, "if such a large cryptocurrency bank can not reopen and allow withdrawals, then the entire cryptocurrency market will have a chain reaction." The "Lehman Crisis" in the currency circle has begun?
For investors' information only and does not constitute investment advice