Dogecoin surged on Sunday by 20% after Elon Musk tweeted that he would continue supporting the meme token, adding that he would keep buying the crypto.
The news comes after the Tesla boss, Tesla, and SpaceX was slapped with a $258 billion class suit for allegedly creating a pyramid scheme around cryptocurrency.
Musk has been accused of pumping the meme tokens and running activities through his companies about cryptocurrency.
The proponent of the lawsuit, Keith Johnson, says that the defendant falsely claims that Dogecoin was an ideal investment when it was not. He also accused the billionaire of using his position to manipulate DOGE for profit motives.
Keith and the represented class claim to have lost about $86 billion since 2019 due to Musk’s activities. The plaintiffs have asked the court to award them $172 in triple damages.
Musk started promoting dogecoin in 2019 and has kept unleashing content and steps aimed at pumping the token. Binance’s CEO, Changpeng Zhao, has at one point cautioned the investor against using his position of influence to manipulate value.