- Elon Musk says he backs Dogecoin because people who are "not that wealthy" asked him to do so.
- Dogecoin and other cryptocurrencies have plummeted in recent weeks.
- Musk has been sued for $258 billion by a plaintiff accusing him of engaging a "pyramid scheme by way of dogecoin cryptocurrency."
- For more stories, go to www.BusinessInsider.co.za.
Elon Musk is a vocal supporter of Dogecoin, and now he has explained exactly why he backs the cryptocurrency.
Speaking at the Qatar Economic Forum on Tuesday, Musk said he buys and backs it because people "who are not that wealthy" have asked him to, according to Bloomberg.
"I just know a lot of people who are not that wealthy who, you know, have encouraged me to buy and support Dogecoin," Musk said in an interview with Bloomberg News Editor-in-Chief John Micklethwait at the forum. "I'm responding to those people."
Dogecoin often fluctuates based on Musk's remarks on it. On Sunday, it jumped 8.5% in the span of 24 hours from near-record lows after Musk tweeted he'd keep supporting and buying the meme token amid a frenzied cryptocurrency sell-off. Last May, Dogecoin plummeted when Musk appeared on Saturday Night Live and called it a "hustle."
Dogecoin was created as a joke in 2013 but gained more investors over the years partly thanks to tweets about it from figures like Musk, Mark Cuban, and Snoop Dogg.
Besides Dogecoin, Musk has also expressed his support for other cryptocurrencies. In October, Musk said he owns Bitcoin, Dogecoin, and ether. In January, Tesla started accepting payments in Dogecoin for some merchandise.
Last week, Musk was sued for $258 billion by a Dogecoin investor accusing him of engaging in a "pyramid scheme by way of dogecoin cryptocurrency."
Musk did not immediately respond to a request for comment.