Dogecoin King Elon Musk Allegedly Under SEC Investigation Over DOGE Tweets

Various reports suggest that Tesla’s founder Elon Musk is in trouble with the Securities and Exchange Commission once again. This time, for tweeting about Dogecoin.

A tweet from First Squawk, a financial newswire, said sources familiar with the matter are saying that the SEC is going to investigate Musk because of his tweet about Dogecoin. Without saying why, many on social media pointed to the joke that the cryptocurrency's price always moves up or down, depending on what Musk tweets.

When Dogecoin was gaining momentum because of the situation surrounding GameStop, Musk gave credence to the Dogecoin rally, influencing it to push the price higher to above $0.070 on Jan. 29. In a Clubhouse chat, Musk said an ironic entertaining outcome of the GameStop situation is if Dogecoin becomes a real currency because of it.

Musk continued tweeting about Dogecoin in the succeeding days, and his support for the cryptocurrency helped push its price just below $0.090. This week, Musk posted a picture of Shiba Inu on the moon, followed by tweets that said “Literally” and “On the actual moon.” Price shot up immediately afterward from $0.04 to $0.06.

However, Musk’s negative comments about Dogecoin also influenced its price negatively. On Feb. 15. Musk complained that a significant quantity of Dogecoin is just concentrated to a few holders. “If major Dogecoin holders sell most of their coins, it will get my full support.”

The above events gave credence to the theory that Musk is influencing the price of the cryptocurrency positively or negatively depending on what he says.

The billionaire appeared to be unfazed with a looming SEC investigation, even if there is one. When a Twitter user said SEC investigating dog memes is "peak 2021," Musk said it would be awesome if the SEC investigates.

Despite all pronouncements coming from Musk that he supports Dogecoin, it’s not the cryptocurrency that went to Tesla’s balance sheet. Early this February, Tesla announced in an SEC filing that it invested $1.5 billion worth of Bitcoins out of its excess cash. It also announced soon allowing its customers to use cryptocurrency as a payment method when purchasing Tesla products.