Elon Musk’s ability to influence the cryptocurrency market with his tweets poses a danger to ordinary investors, said Eric Nurm, founder of the DeFi platform CoinSwap. Cointelegraph writes about it.
“Elon is manipulating the market by creating FUD around bitcoin. It plays the same game as the stock market. After the Securities and Exchange Commission [SEC] banned him from tweeting about Tesla, he turned his attention to the digital asset market, ”he said.
In the long run, Musk’s impulsiveness plays into the hands of the cryptocurrency industry, as it draws the attention of a large number of people, Nurm said.
The CoinSwap founder recalled the incident with the adult content industry token CumRocket Crypto (CUMMIES). In early June, the billionaire posted a note with the words “Canada, USA, Mexico”, after which the coin grew by more than 85%.
“His attempts to raise the value of some tokens, such as Dogecoin and more recently CumRocket, are potentially more dangerous as these obvious Pump & Dump schemes could leave ordinary people without a livelihood,” Nurm said.
On June 14, Musk posted a tweet in which he pointed out that Pluto orbits the Sun in 248 years, and Uranus in just 84 years. After that, the price of the Uranus cryptocurrency (URAC) almost tripled, according to CoinGecko.
Pluto takes 248 years to orbit the sun, but Uranus only takes 84
— Elon Musk (@elonmusk) June 14, 2021
In the fall of 2018, the SEC accused Musk of fraud after his tweet about plans to make Tesla a private company by buying back shares for $ 420 per share. As part of the settlement agreement, he resigned as chairman, paid a fine and pledged to coordinate public statements regarding the firm with a lawyer.
In June 2021, the media reported that, according to the regulator, the billionaire violated this agreement twice – in July 2018 and May 2020.
On June 14, Musk announced that Tesla would resume selling electric cars for Bitcoin if at least half of the miners switched to renewable energy. The digital gold rate reacted with an increase of 12%.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
