Dogecoin Pumps Hard After Elon Musk Launches Counterattack in DOGE Lawsuit

Elon Musk and Tesla Inc. have launched a counterattack against the attorney representing the individuals who filed a lawsuit on behalf of Dogecoin investors. In a recent submission to the U.S. District Court for the Southern District of New York, Musk requested Rule 11 penalties against Evan Spencer from Even Spencer Law.

Spencer is the legal representative for a potential group of Dogecoin investors who accused Musk and his company of manipulating the value of the cryptocurrency for their gains.

False Premise Allegations Against Evan Spencer And The Impact on DOGE Value

According to a Reuters report, Elon Musk and Tesla have taken action by filing a motion for Rule 11 sanctions against Evan Spencer, the attorney representing the plaintiffs in the Dogecoin lawsuit. They argued in their recent filing that Spencer had prior knowledge of the false basis of his case before initiating legal proceedings, marking a new offensive strategy from Musk and his legal team.

More than a month had passed since Spencer filed an amended complaint on behalf of the plaintiffs, accusing the tech billionaire of profiting billions of dollars by selling off DOGE after generating hype for the memecoin on Twitter, a platform Musk recently bought. However, Musk’s attorneys contested in their new filing noted that the wallets mentioned in the amended complaint did not belong to Tesla or its owner.

Furthermore, the filing emphasized that Spencer was already aware of this fact before submitting the amended complaint, which included allegations of insider trading. Elon Musk and Tesla urged the presiding judge to dismiss the amended complaint and impose sanctions on Evan Spencer. Subsequently, DOGE experienced a decrease of over 7 percent in value following the motion for sanctions

The Ripple Effect: How Elon Musk’s Tweet Triggered a Surge in Dogecoin (DOGE) Value

Yesterday, the value of Dogecoin (DOGE) underwent a sudden and significant increase, surging by 3 percent within a span of one minute, resulting in a rise from $0.07 to $0.073 per DOGE. The driving force behind this rapid surge was none other than Elon Musk.

Known for his lighthearted engagement with the cryptocurrency community, Musk provided a brief but significant response on Twitter when asked about his preference between cats and dogs: “Doges.” Surprisingly, this seemingly harmless reply acted as a catalyst, instantly sparking a notable surge in the value of the corresponding token.

Doges

— Elon Musk (@elonmusk) July 17, 2023

Within moments, substantial trading volumes inundated the DOGE market, likely triggered by automated purchasing bots intricately designed to capitalize on any mention of Dogecoin by the self-proclaimed “Dogefather” – Elon Musk.

Nevertheless, the initial surge in value proved to be ephemeral. In a matter of minutes, the vertical increase displayed on the DOGE price chart rapidly dissipated. Surprisingly, within three hours from the time of the tweet, the price of Dogecoin experienced a drastic decline of over 5 percent at its lowest point, effectively nullifying the entire preceding pump and resulting in the token’s value settling a few percentage points lower.

The surprising turn of events serves as a valuable lesson, highlighting the futility of attempting to trade Dogecoin solely based on Musk’s tweets or news. The predictable patterns that emerge from such trading endeavors make it highly probable that individuals would find themselves at a disadvantage rather than successfully competing with swift trading bots that effortlessly capitalize on these trends.