Dogecoin Price Faces Minimal Fluctuation as Elon Musk Wins DOGE Manipulation Case

Key Takeaways:

• Elon Musk and Tesla have won a lawsuit claiming they manipulated Dogecoin's price, which sought $258 billion in damages.​
• The federal judge found insufficient evidence supporting the claims of market manipulation.
• Following the ruling, DOGE’s price showed minimal fluctuations, indicating that market participants had anticipated this legal outcome.

Judge Alvin Hellerstein of the US District Court for the Southern District of New York has dismissed a high-profile lawsuit that accused Elon Musk and his company, Tesla, of manipulating the price of Dogecoin (DOGE) meme coin.

This lawsuit sought damages of $258 billion from Musk and his electric car company. However, the court found no evidence to support the allegations. However, contrary to expectations, this legal victory has not significantly influenced the cryptocurrency market, leading to minimal Dogecoin price fluctuations.

Court Dismisses Dogecoin Manipulation Allegations Against Elon Musk

The lawsuit was filed by Keith Johnson and a group of investors who claimed that Elon Musk promoted Dogecoin as a legitimate investment while secretly manipulating its price for profit.

They argued that this manipulation caused a price surge, followed by a sharp decline that harmed their investments. The plaintiffs believed the billionaire tech mogul had used his social media influence to drive up the price of Dogecoin, leading to substantial financial losses for many investors.

During the court proceedings, Elon Musk's lawyers described the investors' claims as exaggerated and unfounded. They argued that his tweets and public statements about Dogecoin, which included light-hearted comments and memes, were innocuous and did not amount to fraud or manipulation.

Related: How Much DOGE Does Elon Own?

Tesla's CEO's lawyers further insisted that supporting a cryptocurrency with a market cap of nearly $10 billion was not unlawful.

In their defense, Musk's legal team highlighted the vague nature of the plaintiffs' allegations. They pointed out that the investors failed to demonstrate how Elon Musk intended to defraud anyone or what risks he concealed. For example, Musk's tweets containing phrases like “Dogecoin Rulz” were described as too ambiguous to support a fraud claim.

The court agreed with Musk's lawyers, concluding that no substantive evidence proved that either Musk or Tesla engaged in market manipulation or insider trading related to the DOGE memecoin.

This ruling swiftly dismissed the case, clearing Elon Musk and Tesla of all allegations linked to the cryptocurrency. This victory in this high-stakes legal battle brought a definitive end to the claims against him, much to the relief of his supporters and followers.

DOGE Shows Minimal Fluctuations Post-Ruling

Following the court's decision, the price of Dogecoin displayed only minor fluctuations. Initially, there was a slight uptick in value as some traders reacted positively to Musk's legal triumph. However, the overall stability of Dogecoin's price suggests that market participants had anticipated this outcome mainly.

In the past 24 hours, the price of Dogecoin has dropped by 1.27%, trading for $0.09986 at press time. The meme-inspired cryptocurrency has also experienced a 6.19% decrease in value over the past seven days. Notably, DOGE's trading volume has also declined by 20.52% in the last 24 hours and is currently at $473,093,384, according to the data.

Related: Dogecoin Is NOT Dead: But It Can Fail For Several Reasons

Meanwhile, before the case was resolved, Dogecoin had shown relative resilience in the market. Investors have recognized Musk's unique role in the cryptocurrency ecosystem. His frequent endorsements and humorous tweets have often driven attention to Dogecoin and other memecoins, shaping its image in the eyes of potential investors. 

With Elon Musk's legal issues now resolved and no official comments from him yet, some analysts speculate that his future remarks or endorsements could significantly impact Dogecoin's price.