The world community is now actively monitoring the state of Bitcoin and Ethereum because these two most demanded currencies set new anti-records every day. For example, last week, Bitcoin fell to 18 thousand USD, and experts say it is unlikely to stop there. However, while creating hype around the largest cryptocurrencies, many crypto enthusiasts forget about others without changing essential assets, such as DogeCoin. Today we want to talk about how it works in a crypto winter.
What is Dogecoin?
It is an incredibly popular meme token that got substantial popularity thanks to Elon Musk. It is open source based on the way Litecoin and Bitcoin work. It was created in 2013 and significantly impacted this asset’s primary value is not in financial performance but the dog’s funny face on the token’s emblem.
At the time of writing, the value of the currency was: 0.064USD
Latest events around DogeCoin
It’s no secret that Elon Musk is an active supporter of DogeCoin. A few years ago, the currency creators said that the billionaire had invested a lot of money in developing their product. Then Elon Musk denied this, which led to a sharp drop in the value of assets by almost 30%. After this incident, Elon Musk and DogeCoin began to cooperate actively, and the billionaire has repeatedly spoken out in support of this cryptocurrency.
In April 2022, he was allowed to pay for Twitter services in this currency. In January, his company Tesla began selling merchandise for Dogecoin. It made it possible to slightly strengthen the money and prevent it from losing value as quickly as Bitcoin does.
Recently, a lawsuit was filed in the New York District Court, which accused Elon Musk and his companies of creating a financial pyramid using this cryptocurrency and demanding damages of 258 billion USD. The applicants also suggested that the court equate this currency with gambling in the United States.
According to the American, Keith Johnson demands compensation of 86 billion USD threefold. He also appeals to ban Elon Musk and his companies from promoting DogeCoin.
It is worth noting that the crypto community practically did not react to this news. Many began to write funny comments about this or even make memes on this topic, but this had almost no effect on the asset’s value.
On Twitter, Elon Musk said he would not refuse to support DogeCoin. In his opinion, he did not force anyone to buy this asset. In addition, he notes that there were people less wealthy than him who inspired him to support this particular currency, so he will continue to support this asset.
Elliptic published a new study
Elliptic published a study showing that scammers and criminals actively use DogeCoin.
It confirms that most “illegal” Dogecoin transactions are related to scams and Ponzi schemes.
However, it emphasizes that the currency is actively used on the dark web to sell drugs, malware, child pornography, and terrorist financing.
At the time of writing, the company had discovered more than 50 separate thefts, pyramid schemes, and other types of fraud. The attackers received Dogecoin worth hundreds of millions of dollars.
For example, in 2021, the Israeli authorities issued an arrest warrant for crypto wallets allegedly controlled by the Hamas militant group (in some countries, it is recognized as a terrorist organization). According to law enforcement officials, Hamas received donations, including in Dogecoin.