The Securities and Exchange Commission announced today that it is investigating Elon Musk’s tweets related to the cryptocurrency Dogecoin.
Specifically, the SEC will look into the measly 500% gains investors saw in Dogecoin after Musk’s tweets, rather than the 1,000% to 2,000% returns one would expect.
“This incident begs the question: Are markets functioning properly?” SEC spokesman Ralph Kinder asked at a press conference. “When a mega-celebrity and genius entrepreneur like Elon tweets about a low float security like Dogecoin, we would expect that security to go up at least 1,000% in a day or two.”
Sources say the SEC is also working with Congress to potentially reimburse Dogecoin investors who only realized a 5x gain from Musk’s tweets. The reimbursement would aim to make those investors whole by giving them the remainder of the 10x gain they should have received.