Elon Musk backs crypto, remains unconcerned about the crash
The rout on crypto is unprecedented for this fledgling industry. Despite the horror headlines, and disappearing value in wallets, one person remains firm in support of digital assets: Elon Musk.
Seen as a defacto leader and champion for the sector, Musk – who holds Bitcoin, Dogecoin and Ethereum, Tweeted over the weekend “I will keep supporting Dogecoin” (his personal favourite asset). His companies accept payment with the asset, and he will, presumedly, continue to buy coins for his own portfolio.
Crypto investors will no doubt take heart that Musk is willing to stake a not-insignificant percentage of both his assets and personal reputation on publicly backing crypto. However, he also remains a controversial figure for that same reason. Musk is being sued for $258 billion dollars for “deceptively claim that dogecoin is a legitimate investment when it has no value at all,” with the lawsuit filing arguing that Dogecoin is a “greater fools” fraud.
Of course, the lawsuit is almost certainly not going to succeed to that amount, and may well not go anywhere at all. Nonetheless, Musk has run afoul of regulators in the past. In 2018 he was fined US$20 million and forced to step down from his role as Tesla chairman after being accused of making the claim that he would be taking his company private – a big legal error of judgement.