Have you ever heard of crypto whales? If you’re a seasoned hodler, you most probably have. Crypto whales are like their oceanic counterparts – when they’re in their natural habitat (the vast world of forex for example), their movements don’t make much of a splash. But if they’re in a smaller pond, like the crypto market, every little move they make can cause a ripple effect that can leave smaller investors feeling like they’re in the midst of a perfect storm.
The crypto market is relatively shallow compared to other investment markets, which makes it more susceptible to the impact of these crypto whales. If a whale is on the prowl, smaller investors can easily get caught up in their wake, which can be dangerous for those who don’t have the same level of financial resources as these giant players.
Some claim Elon Musk is the most popular if not the largest crypto whale in the pond. While this claim is viewed as controversial, there is certainly something worthy of an investigation. For the sake of smaller fish!
Backstory of Elon Musk’s Love for Dogecoin
Apart from his tweets, Musk’s Saturday Night Live appearance in May 2021, where he played supposed financial expert was the obvious sign of his interest in the meme coin.
Shortly after the television appearance, the price of DOGE dumped more than 25%, falling as low as $.50 from $.66 highs at the show’s start.
But not everybody was happy about that. Back in February 2021, even before his appearance in SNL, a lawsuit was filed against Musk claiming that his tweets about Dogecoin caused the price to rise and fall drastically, resulting in financial losses for some investors. The lawsuit alleged that Musk’s tweets violated securities laws and caused harm to investors.
The alleged damage of $258 billion, is three times more than the estimated decline in Dogecoin’s market value over the past thirteen months.
Related article: Elon Musk Signs Contentious “Pause AI Experiments-Open Letter” to AI Labs
“Objection!” from the Musk side
Now, fast forward to April 2023, and Musk has filed a dismissal request for the lawsuit. He insists that tweeting support for Dogecoin is not unlawful and that he did not intend to manipulate the market.
“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency that continues to hold a market cap of nearly $10 billion.” said Elon Musk’s lawyers.
The influence of Elon Musk’s move on Dogecoin
After the news broke about Elon Musk’s dismissal request for the Dogecoin lawsuit, there was a noticeable increase in both the number of active DOGE addresses and transactions, according to crypto intelligence tracker Santiment. This uptick suggests that the meme coin is gaining popularity, and its holders are likely in support of Musk’s move.
Typically, a rise in on-chain activity is viewed as positive for an asset, and in this case, it caused the price of DOGE to increase by nearly 4 percent overnight. As a result, DOGE holders are feeling optimistic about the future of this Shiba-Inu-themed cryptocurrency as it continues its ascent.
Having heard both sides of the story, it is up to you- holders, to make a judgment and decide how you feel about the situation. After all, we are all in the same pond.
