In light of Elon Musk’s lawsuit, the Tesla executive said he never asked anyone to invest in cryptocurrencies.
The founder and CEO of the American electric car company revealed this today in a virtual interview with Bloomberg News Editor-in-Chief John Micklethwait at the ongoing Qatar Economic Forum.
Despite not advising anyone to invest in cryptocurrencies, Musk and his company own some Bitcoin (BTC) and Dogecoin (DOGE), which he describes as a small percentage of the company’s total cash reserve. He also reiterated his personal support for Dogecoin.
“I have never said that people should invest in crypto. In the case of Tesla, SpaceX, and myself, we all did buy some Bitcoin, but it’s a small percentage of our total cash assets, I also bought dogecoin and Tesla accepts dogecoin for merchandise and I intend to personally support dogecoin.” Musk was quoted as saying in the interview.
Musk is being sued for promoting Dogecoin
A man in the United States recently sued Musk for $258 billion for his role in promoting Dogecoin to the general public.
On Twitter, where he has a massive following of nearly 100 million users, the popular tech mogul has thrown his support behind Dogecoin on several occasions.
Musk’s consistent support for Dogecoin contributed to the cryptocurrency’s massive growth, which reached a high of $0.73 early last year.
However, the token’s value is now a shadow of its former self, having dropped by more than 90% since its peak at $0.73.
DOGE is currently trading at around $0.07, according to data from cryptocurrency aggregator platform Coingecko.
The plaintiff, Keith Johnson, stated that Musk was instrumental in popularizing Dogecoin, which he called a “pyramid scheme” in his lawsuit.
Johnson stated that he would represent global Dogecoin investors who have also suffered significant losses from their investments in the cryptocurrency.
Meanwhile, DOGE co-creator Billy Marcus was not pleased with Johnson’s description of Dogecoin as a pyramid scheme.
Marcus stated in a Twitter thread yesterday that if people consider DOGE a pyramid scheme, then the same label should be applied to all financial instruments, including stocks, commodities, and the entire crypto market, among others.
Elon Musk’s Tesla currently owns 42,902 Bitcoin worth $1.32 billion.
Elon also confirmed that his SpaceX merchandise would soon accept Dogecoin.