On June 22, Elliptic Connect, a blockchain analytics provider specializing in cryptocurrency-based financial crime prevention, published an investigation showing that Dogecoin (DOGE), Elon Musk’s favourite cryptocurrency, is being used by criminals to commit illicit acts.
According to Elliptic, Dogecoinis being used to finance frauds, scams, Ponzi schemes, and other more serious crimes like terrorism and child sexual abuse material.
Elliptic has identified millions of dollars worth of Dogecoin transactions connected to illicit activity including terrorism financing and vendors of child sexual abuse material (CSAM). https://t.co/a4x5pD1nuC#doge
— elliptic (@elliptic) June 21, 2022
Criminals Use DOGE As An Alternative To BTC And ETH
Per Elliptic’s report, criminals have moved millions of dollars in DOGE through thefts, scams, and Ponzi schemes. These include Plus Token, in which $20 million in DOGE were seized, and another alleged $119 million DOGE theft in China connected to a Turkish Ponzi scheme.
However, although millions of dollars are being moved in Dogecoin, most of the illicit activities are not as severe as terrorist financing or the purchase of child sexual abuse material —even though these also exist.
For example, for terrorism financing, the estimated value moved with DOGE amounts to just over $40,000, while for child sexual abuse material, the total is less than $3,000. This shows that criminals are using Dogecoin to evade authorities who have focused on other more established cryptocurrencies like Bitcoin, Ethereum, or Monero.
As for the darknet, Dogecoinis accepted in several marketplaces, such as Archetype, focused on drug sales, Just-Kill, used as a verifier for stolen credit cards, and others that promote illegal buying and selling of weapons and stolen goods.
Elliptic also reported an increase in the use of malware or computer viruses to steal Dogecoin from users’ wallets. However, it noted that the destination address for these funds has received almost $29,000, a minimal figure considering the millions of dollars in cryptocurrencies that have been stolen with similar tools.
Dogecoin Is No Longer Considered a Meme Coin
A curious fact is that, according to Elliptic, Dogecoin is no longer viewed as a meme currency thanks to the promotion that Elon Musk has made through his social media accounts, recalling that a few days ago, the electric car billionaire once again doubled down on his support for DOGE in the World Economic Forum.
And yet, even if indeed Dogecoin is being used for illicit activities, the reported figures are extremely small when taking into account its total value which despite the drop, amounts to more than $8,353,034,906 according to CoinMarketCap.
The business magnate and CEO of Tesla – Elon Musk – said he has never urged individuals to distribute their wealth into cryptocurrencies. He reminded he has personally invested in bitcoin, however, this represents a small percentage of his total capital.
Musk’s Influence on Crypto
The world’s richest man – Elon Musk – has displayed his thoughts on the cryptocurrency industry numerous times, and it is safe to say that often his comments have affected the market. For example, last year, the entrepreneur vowed to put “a literal Dogecoin” on “the literal moon,” which pumped the memecoin’s price by 35% minutes later.
On another occasion, he mentioned “Baby Doge” in one of his tweets. Shortly after, the USD valuation of Baby Doge Coin skyrocketed by nearly 90%.
However, in a recent interview for Bloomberg, Musk stated he had not pushed people toward joining crypto’s ecosystem:
“I have never said that people should invest in crypto.”
Last summer, the billionaire admitted holding Bitcoin, Ethereum, and Dogecoin. During his most recent appearance, he reminded that BTC takes part in his portfolio, but it is a small proportion of his total wealth:
“In the case of Tesla, SpaceX, myself, we all did buy some Bitcoin, but it’s a small percentage of our total cash assets.”
Subsequently, he gave his two cents on his favorite digital asset – Dogecoin, saying he supports the coin. Several months ago, Tesla’s boss argued that despite being created as a “silly joke,” it is better suited for payments than Bitcoin. On the contrary, he bashed BTC for its low transaction volume, opining “at its base level,” it fits the bill for a store of value.
The $258 Billion Lawsuit
Last week, Keith Johnson – a Dogecoin investor – blamed Elon Musk and his corporations (SpaceX and Tesla) for purchasing, developing, and promoting DOGE to broad society and filed a legal case against him. Johnson described Musk’s actions as a “Crypto Pyramid Scheme” and insisted that he pay over $250 billion due to the caused damages.
A few days later, the entrepreneur (known as the Doge Father) declared he will stay an advocate of the memecoin despite the lawsuit. As usual, the token surged 11% minutes after the announcement, climbing to nearly $0.06.
Elon Musk, the world’s richest man and self-proclaimed Doge Father, has declared his unwavering support for the leading meme cryptocurrency, Dogecoin.
Elon Musk to Keep Supporting Dogecoin
The Tesla CEO posted on Twitter earlier today: “I will keep supporting Dogecoin.” He also revealed in response to a user that he is still buying the memecoin.
As usual, DOGE reacted to the billionaire’s tweet, and the price surged by 11% from $0.052 to $0.058 despite the bearish market.
Musk’s declaration of his continued support for Dogecoin comes a few days after an American investor filed a $258 billion lawsuit against him and two of his companies, Tesla and SpaceX, for allegedly promoting DOGE and manipulating the price of the cryptocurrency.
I will keep supporting Dogecoin
— Elon Musk (@elonmusk) June 19, 2022
As reported, the plaintiff, Keith Johnson, described Dogecoin as a “crypto pyramid scheme” and alleged that Musk and his companies deliberately promoted it as a legitimate investment.
The plaintiff argued that the billionaire’s endorsement of Dogecoin led many people to invest in the cryptocurrency, which is currently down by more than 90% from its 2021 all-time high of $0.73.
Johnson is seeking $86 billion in damages from the billionaire and $172 billion for losses incurred from DOGE trades since 2019. He also wants Musk to stop promoting or endorsing the cryptocurrency.
Elon Musk: Dogecoin Rulz
Although Elon Musk wasn’t fully active in the crypto space until 2021, his first tweet about Dogecoin was in April 2019, when he shared a dog meme with the caption “Dogecoin rulz.”
In 2021, the Tesla CEO became one of crypto’s biggest influencers. Since then, when the billionaire speaks, crypto investors listen, and prices soar or plunge, depending on the bullishness of his tweets.
For instance, when Musk added Bitcoin to his Twitter bio in January 2021, the leading cryptocurrency gained 15%. Similarly, millions were wiped out of the crypto market when he announced that Tesla would stop accepting BTC payments due to environmental concerns in May of that same year.
After complaining about Bitcoin’s environmental impacts, Elon Musk became an avid supporter of Dogecoin. He started tweeting about the memecoin, and prices tend to react accordingly. Last month, the billionaire announced users could purchase Tesla merch using DOGE with SpaceX to follow soon. Dogecoin spiked 15% minutes after the announcement.
Timothy Ursich Jr. – who runs for election to the US Senate to represent California – vowed that he will draft a bill proposing Dogecoin as an official payment method if he is victorious. He also opined that two of the best instruments against the current galloping inflation are the leading cryptocurrencies – bitcoin and ether.
The Votes Could Determine DOGE’s Future Status
The United States Senate special election in California will take place on June 7. One of the candidates is a member of the Democratic Party – Dr. Timothy Ursich – who turned out to be a cryptocurrency proponent.
In a recent tweet, the 37-year-old politician promised to propose a bill granting Dogecoin a legal tender status. To accomplish that goal, he called upon the help of the software engineer Billy Markus (the Co-Founder of the memecoin) and the world’s richest person Elon Musk (an outspoken supporter of the asset).
— Dr. Timothy Ursich Jr Candidate for US Senate 2022 (@Ursich4SenateCA) June 2, 2022
Ursich also believes that cryptocurrencies could be a successful hedge against the record inflation that reigns in the States. According to him, assets with limited supply and strong adoption, such as bitcoin, could fit this bill. Despite lacking a maximum cap, unlike BTC, the politician maintained that ETH could also work as such an instrument.
Musk and Dogecoin
Worth less than a cent at the beginning of 2021, Dogecoin’s price soared to an all-time high of over $0.70 a few months later. It is safe to say that some of its progress was fueled by Tesla’s CEO – Elon Musk. Last April, the entrepreneur vowed that one of the corporations he runs – SpaceX – will “put a literal Dogecoin on the literal Moon.” Shortly after that announcement, the memecoin’s USD valuation surged by 35%.
A few months later, Musk criticized bitcoin and ether for conducting slow and expensive transactions while opining that DOGE could minimize the fees and provide a faster settlement speed.
Tesla’s boss took part in the B Word Event in July, where he revealed that he had personally invested some of his wealth in BTC, ETH, and DOGE.
His support towards the memecoin peaked at the beginning of 2022 when he challenged the US fast-food chain – McDonald’s – to accept it as a means of payment. If the firm does so, Musk promised to eat a Happy Meal (the company’s signature burger and french fries box) on TV.
A few days ago, the billionaire boosted DOGE’s price again, disclosing that SpaceX will soon embrace the memecoin as a form of payment.
Jackson Palmer – one of Dogecoin’s founders – sees the cryptocurrency space as an ecosystem where wealthy people are getting even more prosperous on the back of tax avoidance or scammed individuals. He thinks the market’s current decline will not last long, regretting the end of crypto is not near. Palmer is a well-known crypto critic, and his latest outburst doesn’t come much as a surprise.
Even if Crypto is a Scam, People Don’t Care
In 2013 the software engineer Jackson Palmer co-created one of the most popular memecoins – Dogecoin. Years later, the asset’s market valuation soared into the billions, while he claimed cryptocurrencies have become an attractive feature for “shark-like scammers and opportunists.”
Last summer, Palmer went even further, labeling the digital asset sector as a “right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight, and artificial enforced scarcity.”
In a recent interview for the Australian media Crickey, he reiterated his anti-crypto stance. Palmer argued the current collapse of the market could not classify as a “crypto winter” as promoters continue to funnel money into the industry.
“They’re waiting for a fresh batch of fools to come in. This happens in cycles. You wait for a while for the collective memory of the world to forget about how much of a scam it is.”
Dogecoin’s Co-Founder wished this was the end of crypto since the space is rammed by scammers and people who witness fraudulent activities but say: “do I really care?”
Another problem that Palmer pointed out is that celebrities often promote digital asset projects just because they have been paid to do so and thus mislead inexperienced investors.
The software engineer claimed one of the few good things in the space is that the number of skeptics has been on the rise since individuals started losing money. Prior to that, the majority were gaining due to the bull run, and even if they were to notice a Ponzi scheme, their response was: “So what, the world’s a pyramid scheme.”
Is Crypto Really That bad?
Contrary to Palmer’s bashing manifest, digital assets (more specifically bitcoin) have certain benefits that make them highly beneficial to today’s world.
Bitcoin, for once is decentralized (it is not printed or controlled by central banks), easily accessible, and transparent. In times of economic crisis (such as nowadays), it could act as a hedge against galloping inflation. Unlike purchasing precious metals or properties, which are riddled with gatekeeping, investors could buy very small quantities of BTC (they can distribute $10, $100, or whatever amount they want).
It is worth noting that numerous experts have emphasized the asset’s merits over the past few years. Billionaires Paul Tudor Jones and Chamath Palihapitiya believe it has emerged as an inflation hedge superior to gold. One of Apple’s inventors – Steve Wozniak – sees BTC as a mathematical phenomenon, while legacy investor Bill Miller opined its unique nature resembles the luxurious sports car Ferrari.
Even the world’s richest man – Elon Musk – argued that bitcoin and the altcoins might not be perfect but are “fundamentally better” than any other financial products.
Like the rest of the cryptocurrencies, Dogecoin had seen a painful month in May, experiencing a rapid decline in its DOGE valuation. Can Elon Musk save his favorite cryptocurrency with the price at critical support?
Key Support levels: $0.08
Key Resistance levels: $0.11
DOGE had a positive month in April, but all of this came to an abrupt stop in May with its price falling by over 60% from the highs recorded just a month before. Now, DOGE is facing the 8 cents critical support. From the bullish side, the key resistance lies at 11 cents, however, this level seems quite far away right now.
Trading Volume: The volume closed in the green over the past two days, but now the price action turned red again. Despite the above, the trading volume remained low over the weekend.
RSI: The daily RSI made a higher low, but continues to be very close to the oversold area. This is a sign of weakness as long as the RSI cannot move higher.
MACD: The daily MACD is bullish. However, buy momentum is absent, which is reflected in the histogram.
The bias for DOGE is bearish, while Dogecoin hopes for a better month after the bloody May.
SpaceX CEO Elon Musk said the firm will soon accept Dogecoin as a form of payment. Previously, on similar occasions, Musk’s comments had driven the popular meme coin to surge in value within a short period of time. This time, the cryptocurrency spiked nearly 15% right after the news broke, but it soon gave away most of its gains.
- After announcing the EV giant Tesla would accept Dogecoin as payment for some of its merchandise, the self-proclaimed Dogefather doubled down its faith in the meme coin, revealing on Twitter that SpaceX, another venture he led as CEO, will soon accept Dogecoin as a payment option. He tweeted:
“Tesla merch can be bought with Doge, soon SpaceX merch too.”
- However, Musk did not specify when the payment option will be available to the public.
- When asked if SpaceX would allow customers to pay for Starlink’s internet subscriptions with Dogecoin, Musk replied, “Maybe one day.”
- Last May, SpaceX accepted Dogecoin as full payment for a lunar mission dubbed the “DOGE-1 Mission to the Moon.” Musk noted that “Dogecoin would become the first cryptocurrency in space.”
- At the time of writing, the largest meme coin by market cap is trading slightly below $0.08 as its earlier gain spurred by the news has mostly been wiped out.
After failing at $40,000 two days ago, bitcoin was violently rejected and dumped by over $4,000 in hours to its lowest price point in over two months. The alternative coins are also buried in red, with massive price drops from Solana, Polkadot, Avalanche, and many others.
Bitcoin Slumped Below $36K
It was just a few days ago when the primary cryptocurrency started its recovery from its most recent sub-$38,000 price dip. The bulls pushed the asset north following the FOMC meeting, in which the Fed said it will raise interest rates by 50 basis points instead of 75, and BTC tapped $40,000.
However, this leg up was short-lived as bitcoin was stopped there and remained at just under that level for the next day.
The situation changed vigorously in the following several hours, as reported yesterday. Bitcoin started crashing hard and dumped by approximately $4,000. Aside from causing millions of dollars in liquidations, the cryptocurrency plunged to its lowest level since Russia invaded Ukraine, below $36,000.
As of now, BTC has reclaimed some ground and sits above that level, but it’s still 8% down on the day. As a result, its market capitalization has plummeted below $700 billion.
Altcoins See Only Red
As it typically happens when BTC dumps hard, so do the alternative coins. Ethereum is a prime example, as it stood above $2,900 yesterday. Now, though, a 7% daily drop has pushed the second-largest cryptocurrency by around $200 down. Moreover, ETH even dipped beneath $2,700 hours ago.
BNB, Ripple, Terra, Dogecoin, Shiba Inu, and Tron have all lost between 5-6% in the past 24 hours. Even more price drops are evident from Solana (-11%), Cardano (-9%), Polkadot (-10%), Avalanche (-13%), and NEAR Protocol (-15%).
The lower- and mid-cap alts are in an even worse situation. STEPN (-26%), Zilliqa (-20%), ApeCoin (-17%), Waves (-17%), Moonbeam (-17%), Axie Infinity (-16%), Kava (-15%), and Fantom (-15%) have all lost double-digits.
Ultimately, the cumulative market cap of all crypto assets saw $150 billion gone and is down way below $1.7 trillion.
Renowned American rapper and actor – O’Shea Jackson Sr. (better known as Ice Cube) – asserted that he is a supporter of the first-ever memecoin Dogecoin. Thus, he put his name next to the likes of Elon Musk, Roger Ver, Snoop Dogg, Gene Simmons, and more.
Ice Cube Among the DOGE Proponents
Despite being created as a joke in 2013, Dogecoin emerged as a leading digital asset with a market capitalization of over $17 billion. The token also attracted numerous celebrities who displayed their support over the past few years. The latest such person is the popular rapper, actor, and filmmaker – Ice Cube.
The American replied to a tweet from Bill Lee (a founding member of MyDoge wallet), stating he is “down with the Doge army.”
— Ice Cube (@icecube) May 4, 2022
Shortly after, Ice Cube emphasized Bill Lee’s decision to purchase 25 Fire-Tier editions of BIG3’s Aliens for $600,000 worth of DOGE. The deal became the largest commercial transaction conducted in Dogecoin.
Speaking of supporters of the memecoin, it is worth mentioning Elon Musk. Tesla’s CEO often praises the token on his Twitter account, which in many cases has led to a surge in DOGE’s price.
Last month, the asset’s USD valuation spiked when news broke that Musk will acquire the social media platform for around $44 billion. Prior to the deal, he proposed implementing Dogecoin payment options on Twitter.
Not long ago, Musk argued that Dogecoin is better suited for transactions than bitcoin. In his view, the primary cryptocurrency is currently suitable for a store of value and not for payments.
Who Else Supports DOGE?
Another popular person keen on Dogecoin is Roger Ver, whose nickname paradoxically is “Bitcoin Jesus.” He opined that DOGE is “significantly better, cheaper, and more reliable” than the primary cryptocurrency.
Last year, the memecoin received support from the American rapper Snoop Dogg. He praised the token on April 20, the unofficial holiday for cannabis smokers. Moreover, Snoop Dogg proposed that the date should be named DogeDay.
Another fan of the memecoin is the legendary member of the rock band KISS – Gene Simmons. In February 2021, he became a DOGE HODLer as he believed its price will go up. His prediction was quite accurate, as when he invested in the asset, its USD valuation stood at a mere $0.04. In the following months, it surged to an all-time high of $0.73, while currently, it trades at about $0.13.
Featured Image Courtesy of Rolling Stone
Yesterday’s FOMC meeting had a positive impact on most of the crypto market, with bitcoin spiking toward $40,000. Most altcoins are also in the green. Cardano, Solana, Polkadot, and Avalanche are among the best performers.
Bitcoin Touched $40K
Ever since last week’s rejection at above $40,000, the landscape for the primary cryptocurrency has been quite bearish. It quickly returned below that level and kept losing value. This resulted in a drop to a two-month low of under $37,500.
Despite bouncing off and challenging $39,000 in the next few days, the asset ultimately failed and returned below $38,000 once again, as reported yesterday.
It neared and stood around $38,500 ahead of the highly-anticipated FOMC meeting, which took place yesterday evening. In it, Fed Chair Jerome Powell said the institution will raise the interest rates by 50 basis points (instead of the expected 75).
This had a positive impact on BTC’s price, which jumped to an intraday high of $40,000. As of now, the cryptocurrency has retraced by several hundred dollars, but it’s still around 2% up on the day. As such, its market cap stands above $750 billion.
Cardano Leads the Alts’ Way
The altcoins were also in bad shape in the past week or so, but green has taken over the market now.
Ethereum slipped to $2,700 days ago but now stands above $2.900. This comes after a 2.5% increase on a daily scale.
A similar price pump has pushed Binance Coin to $400, while Ripple is close to $0.65 after gaining 3.7% on the day.
Solana trades above $90 after surging by 6%. Polkadot (5%) and Avalanche (8%) are also well in the green. Cardano is up by more than 9% and sits close to $0.9.
Ultimately, the crypto market cap has added around $60 billion in a day and is now at $1.8 trillion.