Billionaire Elon Musk hasn’t abandoned his support of the meme token dogecoin despite the collapsing prices of bitcoin and other leading cryptocurrencies.
The Tesla CEO indicated that he is adding to his dogecoin stake, even as other investors dump their cryptocurrency and other risky assets in response to the Federal Reserve’s move to tighten monetary policy through interest rate hikes.
“I will keep supporting Dogecoin,” Musk tweeted on Sunday.
When a Twitter user replied by saying Musk should “keep buying it” to show his support, the billionaire replied, “I am.”
Dogecoin’s price was up more than 4% to about $0.06 per token on Monday following Musk’s tweets. The meme token also rose nearly 10% on Sunday. However, dogecoin’s price is still down more than 90% since hitting its all-time high of $0.74 in May 2021.
Musk has emerged as a major backer of bitcoin, dogecoin and other cryptocurrencies in recent months despite their propensity of volatile trading.
Dogecoin has regularly emerged in value when Musk speaks publicly about his interest. Last year, the price emerged ahead of Musk’s appearance as a guest-host on “Saturday Night Live, hitting its all-time high before quickly dipping once the episode aired.
Earlier this year, Musk revealed that Tesla had begun accepting dogecoin as payment for some merchandise in its online store. SpaceX is slated to accept dogecoin in the near future.
Musk has also floated the possibility that some Twitter users will be able to use dogecoin for transactions within the social media app if his $44 billion takeover deal closes.
Musk touched on his plans for dogecoin in a cryptic tweet on Saturday, hinting that both of his companies could accept the cryptocurrency for other items in the future.
“Tesla and SpaceX merch, maybe more down the road,” he said.
Musk’s latest tweets on dogecoin came just days after the tech billionaire was slapped with a $258 billion federal lawsuit which alleged that he and his companies “are engaged in a crypto pyramid scheme by way of dogecoin cryptocurrency.”
As The Post reported, the plaintiff, Keith Johnson, wants to represent a class of people who have lost money investing in dogecoin.
Top crypto tokens have plunged in tandem with traditional stocks this year as investors brace for the possibility of a recession.
Last week, Musk reacted with a single word when bitcoin fell below $21,000 for the first time since December 2020.
“Cryptonight,” Musk tweeted.