Home Finance LAWSUITS ARISING AGAINST MUSK FOR SCAMS WITH DOGECOIN

LAWSUITS ARISING AGAINST MUSK FOR SCAMS WITH DOGECOIN

by Lalithaa

Digital currencies have allowed the diversification of traditional investments to an utterly digital ecosystem, a completely new business idea different from traditional investments, not only because of the way it is invested but the legalized digital currency in their country also because of the valuation of the assets that make up this digital market finance.

Many large investors have started to adopt this new trend that has been quite useful over the years, mainly if they have dedicated themselves to the storage of digital currencies.

The return rates offered by cryptographic investments exceed the expectations of any financial investment since their capitalization can vary from day to day, even when prices are pretty high. As a result, their guarantee of sharing profits is much more effective.

The impact of digital currencies on large investors has been so significant that they have created their tokens and have work teams solely and exclusively to supervise and control their digital investments.

Elon Musk and cryptocurrencies

The businessman and billionaire from Tesla have publicly announced that Bitcoin is the currency that gave rise to this new environment of decentralized finance, which for him is a precious opportunity to invest in a different sector and will surely be the future of investments.

For Elon Musk, the digital currency that emerged from a Bitcoin meme (Dogecoin) is usually a currency that could replace traditional currencies because it is easy to trade.

What does the distinguished businessman mean by this, that the cost of issuing Bitcoin and its operation is usually more expensive as far as the mining process is concerned.

It usually considers Bitcoin more as a reserve of value than as a substitute for legal tender currencies; from his position, nothing incoherent fully supports his token; however, his vision concerning Bitcoin is quite interesting.

Although the general perspective of Elon Musk usually indicates that these financial instruments cannot replace fiduciary currencies since this requires not only the technological preparation of the population but also a radical change in the traditional economy.

He clings to the idea that his Doge cryptocurrency will help him lead the digital payment market, where most users of this insurance market will adopt this digital currency to replace Bitcoin.

What is Dogecoin?

It is considered a crypto meme created in 2013 by the engineer Billy Markus; that year, Bitcoin was going through a difficult stage after being involved with money laundering and black-market businesses.

The ingenious programmer tried to create a token that could distance the negative image of that world from cryptocurrencies since, for the digital financial market, they represented an excellent tool that could bring benefits to investments.

Unlike Bitcoin, this type of cryptocurrency can be mined through the solution of complex algorithms through cryptographic software known as Scrypt through any computer.

258 million for an alleged Musk scam

As it happened with Terra Luna in this stage of crypto winter, a lawsuit arises promoted by a Dogecoin user named Keith Johnson, who intends to obtain compensation for the drastic decrease in the price of the Crypto meme.

In his lawsuit, he accuses the prestigious businessman and his companies, Tesla and SpaceX, of promoting the acquisition and operation of the cryptocurrency he supports.

According to the plaintiff, Musk has carried out a campaign to promote and use digital currency, which could be compared to a pyramid scheme that has benefited him but has affected many users.

On the other hand, this lawsuit also intends to avoid future promotions of this crypto asset by Musk’s companies and the billionaire himself.

It could be considered a case similar to that of the public official who went in search of the creator of Terra Luna for an explanation of the drastic fall in the cryptographic market of the currency that aimed to be a success for 2022.

Conclusion

The volatility of digital assets are risks assumed when investing; the traditional and digital financial market represents risks to which users of cryptocurrencies must be alert, and the free play of supply and demand demonstrates the perspective that can have an asset.

 

The investments depend entirely on the user, beyond the publicity that the adoption of a particular digital asset may represent.

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