Musk Wins Dogecoin Lawsuit – Were Investors Unreasonable to Rely on His Sensational Tweets?

• Musk wins Dogecoin lawsuit, as a federal judge dismissed his tweets as aspirational and puffery,' calling the disgruntled investors unreasonable.
• The insider trading accusations remain unproven, as it remains unclear whether Musk profited from his sensational Dogecoin tweets that sent the coin skyrocketing.
• Meme coin traders shouldn't invest in crypto-based on outlandish remarks made by celebrities on social media, as that carries immense risks.

Remember when Musk changed Twitter's logo to Dogecoin in 2023? That sent $DOGE on a 30% pump, reaching a peak price of $0.1016. He also left several bullish comments on Twitter, like launching a physical $DOGE in space.

This led to many investors going wild over the meme coin and filling their bags. But $DOGE had other plans, and it tanked, with financial losses piling up.

One thing led to another, and eventually, a lawsuit against Musk appeared. The plaintiffs demanded $258B in damages, but today, Musk has managed to dismiss the lawsuit.

Let's see what happened and what this means for Dogecoin's price.

Judge Deems Musk's Tweets as Aspirational and Puffery'

Yesterday, the class action lawsuit against Tesla and Musk became a non-issue after a federal judge dismissed it. The judge said investors shouldn't reasonably rely on Musk's tweets for investment advice.

These statements are aspirational and puffery, not factual and susceptible to being falsified. They cannot be the basis of [a] lawsuit, and no reasonable investor could rely upon them.Federal Judge

As the lawsuit primarily focused on Musk's tweets, dismissing those as aspirational and puffery, not factual and susceptible to being falsified' it was a get-out-of-jail-free card for Musk.

Some of the accusations also included insider trading, as many speculated Musk (and Tesla) hadsold $DOGE immediately after he allegedly inflated the coin's price. But there's no evidence showing this happened.

The plaintiffs weren't so happy about the ruling - they said Musk's publications had been far more than puffery,' and the investors involved had lost a lot of money.

We live in a world where the richest people like Elon Musk do whatever they want and get away with it. The Second Circuit Court of Appeals has had the spine to rule against Musk before, and that is where we will receive justice in this case.Plaintiffs in the Musk Dogecoin LawsuitWere Investors Right to Follow Musk's Sensational $DOGE Tweets?

Meme coins are high-risk, high-reward investments that rarely play by the rules. Authority figures (like Musk) hold great sway over these coins' market performance and can (and do) impact their prices.

But it's the investor's decision to take action or not that seals the deal. Acting on Musk's sensational Dogecoin tweets was always a risk, acknowledged or not.

If Musk sold Dogecoin at the same time as singing its praises (commonly known as a pump-and-dump scheme), that's an issue. However, those allegations have been denied so far.

Musk's lawyers said that there isn't anything unlawful about publicly supporting a major cryptocurrencyor posting funny pictures about it.

One thing remains true - if you decide to invest hundreds of thousands of dollars in a meme coin based on a celebrity's outlandish remarks on social media, you might lose.

What's Dogecoin Doing in August 2024?

Dogecoin is currently $0.1011 (-20.22% monthly), with a 53.97% yearly growth. In March 2024, the coin reached $0.2201, following a 9-month stagnation under $0.1.

While very far from retouching its $0.6528 ATH from May 2023, the coin is showing bullish potential, especially after Musk's return as the Dogefather. We don't know when (or if) $DOGE will surpass that price point but it's not outside the realm of possibility.

Dogecoin is the biggest meme coin, and it has enormous popular support. During a potential crypto rally, it would undoubtedly head up at breakneck speed.

Summary - Musk's Tweets Shouldn't Be Investment Directives

Regarding Musk's lawsuit, two questions remain:

1. Were Musk's sensational tweets really all that, or did he profit from insider trading?
2. What will the plaintiffs do now that a federal judge has permanently dismissed the lawsuit?

In our opinion, trading meme coins (or any crypto) should involve personal research, risk acknowledgment, and avoiding FOMO at all costs.

References

• Tesla, Musk Dodge $258 Billion Dogecoin Lawsuit as Judge Dismisses Case (Decrypt)
• Dogecoin Price Performance (CoinMarketCap)

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