Elon Musk can move cryptocurrency markets with his tweets. However, this represents a danger to the average investor.
Eric Nurm is the CoinSwap founder. He says that the furor created around Tesla CEO’s social media activity could draw more eyes to crypto in the long run.
Securities and Exchange Commission
The Securities and Exchange Commission banned Tesla chief Elon Musk, tweeting about his own company. Nurm says that Musk began tweeting about cryptocurrencies after the ban. He further noted that Elon has been manipulating the market by creating FUD around Bitcoin.
Moreover, Elon is playing the same game he did with the stock market. He says that the turmoil in the markets at present is due to the ever-changing temperament of Elon Musk. Tesla Elon Musk’s temperament appears to run hot and cold.
Earlier in the year, he announced that Tesla would accept Bitcoin as a payment option for its electric cars. But he reversed his decision only weeks later. Recently Musk again reversed his decision. He announced that Tesla would accept Bitcoin once 50% of its mining gets carried out with clean energy usage.
Pump and Dump
Elon Musk’s efforts to drive up the price of specific coins are potentially more dangerous. These pump and dump schemes may leave several ordinary people out of pocket. Nurm warns to take Musk’s tweets and other comments with a pinch of salt. Finally, all must remember that he has ulterior motives.