El Dogecoin price has fallen 3,5% after Elon Musk's comments about his favorite cryptocurrency.
During an interview at the Wall Street Journal's CEO Council Summit, Elon Musk, CEO of Tesla and owner of Twitter, ratified his support for the Dogecoin memecoin, which he called his favorite cryptocurrency. However, despite his enthusiasm for this digital asset, Musk said that it was not advisable for investors interested in cryptocurrencies to place large bets on DOGE.
Musk warned about the risks of investing all wealth in an asset like Dogecoin, whose value is based mainly on popular culture and is highly speculative.
So-called meme cryptocurrencies or memecoins lack fundamental value, CoinGecko's Lim Yu Qian wrote in an article in which he talked about the opportunities and risks that these digital assets represent for investors.
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Dogecoin, Elon Musk's favorite cryptocurrency
Although Elon Musk said he was not giving crypto asset investment advice during the interview, he noted that Dogecoin was his favorite cryptocurrency because “it has humor and dogs.”
On other occasions, the tycoon has also highlighted the potential of Dogecoin as a medium of exchange, since it allows cross-border transactions to be carried out quickly and at a very low cost. However, his constant enthusiasm for Dogecoin has cost Musk numerous criticisms and even an exorbitant lawsuit.
Musk faces current lawsuit over alleged Dogecoin promotion as an investment. While Musk has not directly recommended investing in DOGE, with his constant Twitter barrage about the cryptocurrency, its use cases, potential and benefits, he has raised high expectations among investors looking for new opportunities to grow or diversify their portfolios.
The lawsuit was filed by a group of users led by investor Keith Johnson who claim to have been “scammed” by Musk for promoting the memecoin on social media. The amount of the demand amounts to $258.000 million.
El DOGE price falls 3,5%
In the last few hours, the price of Dogecoin has suffered a 3,5% correction, according to data from CoinMarketCap.
At press time, the meme cryptocurrency is trading on the market with a price of $0,070 dollars per unit. Dogecoin has lost 5% of its value in the last week and more than $300 million in capitalization.
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