Elon Musk has reaffirmed his trust in cryptocurrencies amid the bloodbath. Musk, who has been accused of duping investors by promoting Dogecoin, has said he will keep supporting the meme coin.
"I will keep supporting Dogecoin," the tech billionaire tweeted. Musk's tweet immediately caused a rebound in the market, with Dogecoin rising as much as 8 percent. The price of the coin, which had dipped to $0.052307, rose to $0.058037 after the Tesla founder's tweet.
Musk's tweet came two days after it was reported that he has been slapped with a multi-billion dollar lawsuit over allegedly engaging in a 'Dogecoin pyramid scheme'. The investor who sued Musk demanded $258 billion in damages due to the wealth erosion he suffered owing to the Dogecoin boom created by Musk.
The rebound in Dogecoin following Musk's tweet had add-on impact on other cryptos. Bitcoin, which suffered massive scaleback, edged up to $19,735.89, which is more than 4 percent higher than the June 18 slump to 17,677.43. Ether was up more than 6 percent at $1,058.60.
Musk's consistent social media promotion of Dogecoin fuelled an unseemly rise in the valuation of the coin, which was created initially as a comic diversion. Doge was invented as a joke to make fun of the wildly swinging crypto market.
However, Musk started promoting it among millions of his followers and fans, causing the prices of the coin to skyrocket. The great catalyst in the rise of Doge into the big league of cryptocurrencies was Musk's announcement that Tesla would accept payments in Dogecoin.