Dogecoin (DOGE) Drops 8% after Musk Returned Bird Logo on Twitter amid $258B Lawsuit
Reportedly, two of the top Dogecoin whales reduced their holdings by $1.4 billion during the three days the DOGE image appeared on the Twitter web.
The Dogecoin (DOGE) community had a short-lived thrilling moment after tech billionaire Elon Musk removed a dog-themed logo from Twitter Inc. Three days ago Musk switched Twitter’s famous bird logo with a DOGE avatar. As a result, the Dogecoin price gained nearly 30 percent to hit $0.1026. Dogecoin price has, however, declined approximately 7.89 percent during the past 24 hours to trade around $0.085 during the early Asian trading session on Friday.
Dogecoin Teaser
Prior to Elon Musk changing Twitter blue bird logo to Dogecoin’s avatar, the meme coin was trapped in a consolidation. The second largest prop-of-work (PoW) blockchain after Bitcoin received a technically free advertisement on Twitter that boasts of over 200 million monetizable daily active users (mDAUs).
The Bird is Back. pic.twitter.com/Tj6SBga1bc
— Michael Saylor⚡️ (@saylor) April 6, 2023
However, the on-chain analytics platform Lookonchain has uncovered some unpleasant Dogecoin data. Reportedly, two of the top Dogecoin whales reduced their holdings by $1.4 billion during the three days the Doge image appeared on the Twitter web. While the two Dogecoin addresses are not named appropriately, Lookonchain has questioned if they are closely related to Musk.
On Apr 4, @elonmusk changed the Bluebird to dog, the price of $DOGE increased by ~30%.
On Apr 7, he changed the logo back to Bluebird, the price of $DOGE decreased by ~6%.
During this period, 2 whales among the top 5 holders reduced their holdings by ~1.4B $DOGE ($121M). pic.twitter.com/k4whKR2s1u
— Lookonchain (@lookonchain) April 7, 2023
Moreover, Musk has in the past indicated that he owns Dogecoin directly and indirectly. For instance, Musk received the payment through Dogecoin from his space exploration company after launching a satellite dubbed Doge-1 to the moon. Additionally, in late 2021 Musk announced that he had purchased some Dogecoins for his little son named X to become a ‘toddler holder’.
As a result, the Dogecoin community hopes the tech billionaire will add Doge as a form of payment on the social media platform. Moreover, Musk has added Bitcoin’s lightning network as a form of content creator tipping program. With Musk’s plans to change Twitter to a mega Web3 protocol, Dogecoin is expected to be integrated as a form of payment in the future.
The Downside
The support for Dogecoin has not been all rosy for Musk in the past. Notably, Dogecoin was trapped in a logarithmic downtrend in 2022 after hitting its ATH of around $0.73. Down over 88 percent, a section of Dogecoin investors has sued Musk for allowing the meme coin to suddenly crash on investors.
In the $258 billion lawsuit, Musk and his lawyers have requested a Manhattan Judge to drop the case as it has no solid grounds.
“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,” Musk’s lawyers said. “This court should put a stop to plaintiffs’ fantasy and dismiss the complaint.”
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