Woof. Things are not looking great this afternoon for the popular cryptocurrency Dogecoin (CCC:DOGE). With rumors swirling that the U.S. Securities and Exchange Commission is investigating Elon Musk over his public support, DOGE is falling. So what do you need to know? And what does this mean for Dogecoin price predictions?
Here is a quick recap. Elon Musk is the CEO of huge companies like SpaceX and Tesla (NASDAQ:TSLA). He is also a huge supporter of cryptocurrencies, including meme-worthy Dogecoin. In recent weeks he has used Twitter (NYSE:TWTR) to share his support and create memes with other celebrities like Gene Simmons and Snoop Dogg. Just yesterday, an update to his Twitter bio and a declaration that DOGE was headed for the moon created a 20%.
Unfortunately, those tweets may be taking DOGE on a turn for the worse.
Zero Hedge, a financial blog that rose to prominence in the wake of the 2008 crisis, tweeted today that the SEC is investigating Musk for his tweets on Dogecoin. The message from Zero Hedge simply cites sources familiar with the matter.
SEC IS SAID TO INVESTIGATE TESLA CHIEF EXECUTIVE MUSK FOR HIS TWEETS ON DOGECOIN: SOURCES FAMILIAR WITH THE MATTER
— zerohedge (@zerohedge) February 25, 2021
Right now, that is all we have to go on about the story. However, the tweet is doing its trick. At the time of writing, DOGE prices were down 8% over the last 24 hours.
Dogecoin Price Predictions: What Comes Next?
So what does this mean for Dogecoin? And is there any merit to such an investigation?
Some social media users were quick to point out that cryptocurrencies are designed to have protection from such regulatory agencies. However, Musk is a complicated figure. We know that he has purchased DOGE on behalf of his youngest son, X Æ A-Xii. We also know that his tweets have been hugely influential in Dogecoin price predictions, leading to several isolated rallies in the DOGE price. And lastly, we know that Musk is no stranger to SEC regulators. Previous tweets about the price of Tesla stock have landed him in hot water.
Keep a close eye on these rumors, and wait for further confirmation. And if you are a big believer in Musk, cross your fingers and hope he tweets out his next bold, bullish message.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.