Elon Musk’s capability to maneuver cryptocurrency markets along with his tweets represents a hazard to the typical investor, says CoinSwap founder
Elon Musk’s capability to maneuver cryptocurrency markets along with his tweets represents a hazard to the typical investor, says CoinSwap founder Erik Nurm, however the furore created across the Tesla CEO’s social media exercise might draw extra eyes to crypto in the long term.
Nurm identified that Musk’s tendency to tweet about Bitcoin (BTC), Dogecoin (DOGE) and different cryptocurrencies started shortly after the Tesla chief was banned from tweeting about his personal firm by the Securities and Trade Fee.
“Elon has been manipulating the market by creating FUD round Bitcoin. He’s taking part in the identical sport he did with the inventory market,” stated Nurm.
“After he was banned by the SEC from tweeting about Tesla, he has shifted focus to the crypto market, the place he can run free on social media for now,” he added.
The CoinSwap founder sees turmoil within the markets at current, largely due to the ever-changing temperament of Elon Musk, which seems to run cold and hot. Earlier within the 12 months Musk introduced Tesla would settle for Bitcoin as a cost choice for its electrical automobiles, solely to reverse his choice weeks later.
Extra not too long ago, Musk reversed his choice as soon as once more, saying that Tesla would settle for Bitcoin as a cost choice as soon as 50% of its mining was carried out with clear power utilization.
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However Musk’s erratic nature when interacting with the crypto world might finally entice extra folks to it in the long term, even when for the improper causes, says Nurm.
“Regardless that Musk is briefly inflicting turmoil available in the market, his involvement could possibly be helpful for crypto within the long-term as he’s attracting new folks to crypto, albeit for typically the improper causes,” he stated.
Nurm referenced Musk’s latest cryptocurrency plaything: CumRocket (CUMMIES), a token supposedly created to be used within the grownup movie trade which quadrupled in value within the area of 10 minutes when Musk started tweeting about it.
“His efforts to drive up the worth of sure cash, like Dogecoin and extra not too long ago CumRocket, are probably extra harmful as these obvious pump-and-dump schemes might depart many bizarre folks out of pocket.”
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A pinch of sodium chloride is required when decoding Musk’s tweets, says Nurm, who added that the multi-billionaire CEO might have ulterior motives when he provides the thumbs up or thumbs down on a given coin.
“I hope folks take all of Musk’s crypto tweets and different feedback with a pinch of salt — and so they should keep in mind he has ulterior motives,” Nurm ended.