Tesla CEO Elon Musk has been criticized for wielding what many understand to be irresponsible affect over the cryptocurrency market. Musk usually took to Twitter to publish memes and scorching takes on varied cryptocurrencies all through most of 2021, not least Bitcoin (BTC) and Dogecoin (DOGE).
Musk quickly added one other coin to that checklist — CumRocket (CUMMIES). CumRocket is described as a “revolutionary deflationary token” aimed in the direction of use by these within the grownup movie trade.
On June 4 Musk posted a cryptic tweet with three phrases listed: Canada, USA, Mexico. Observers interpreted this as Musk cheekily writing the phrase “CUM”, and inside hours the worth of a little bit identified token referred to as CumRocket greater than doubled.
Quick ahead 24 hours and Musk was at it once more. This time he posted a sequence of emojis which may fairly be interpreted as “CumRocket to the moon”.
— Elon Musk (@elonmusk) June 5, 2021
Inside simply ten minutes, the worth of CumRocket jumped from $0.06 to $0.28 — a 366% improve. Predictably, the speculative pump didn’t final for lengthy, and by the point of publication, the CUMMIES token worth had fallen again to round $0.07.
One of many first Bitcoin trade operators, and co-founder of Zap Protocol, Nick Spanos, advised Cointelegraph he believes a lot of Musk’s market-moving exercise is designed to acceptable extra property at a less expensive worth than he in any other case would have.
“Musk harmed numerous folks much less lucky than he in his egocentric shilling and strikes to get cheaper coin,” stated Spanos.
The prime instance of this, if true, would maybe be Musk’s announcement that Tesla had bought $1.5 billion price of Bitcoin, and that the automobile firm would settle for BTC for cost. Lower than a couple of weeks later, Musk enacted a swift reversal of sentiment on Bitcoin, which he derided for its environmental impression, and summarily eliminated it as a cost possibility on the Tesla web site.
Even when Musk simply obtained bored of Bitcoin, his tweets to over 50 million followers quantity to recklessness, and an abuse of belief, says Spanos.
“Individuals consider in Bitcoin as a result of it’s a path to financial independence from central banks, and he’s attacking their belief with reckless tweets and abuse of affect. As a substitute of being a job mannequin, he’s revealing much less favorable primal traits.”
Musk has beforehand stated he would welcome any investigation by the Securities and Change Fee into the impact his tweets have had on the crypto market. Spanos stated Musk’s vanity and greed must be paid for, whether or not to the SEC, or nameless hacker teams similar to Nameless. (Nameless has since denied duty for the video addressed to Elon Musk).
“Conceitedness and greed can’t protect him from penalties. If the SEC isn’t going to sanction him for manipulating markets like they did earlier than, maybe the activists will,” stated Spanos.
“It’s not onerous to think about a state of affairs the place individuals who belief their lives together with his know-how, may see incidents the place that belief possibly even catastrophically ends,” he added.
As reported by the BBC, one girl misplaced £9,000 ($12,700) in a Bitcoin rip-off which was falsely introduced as an official giveaway by Elon Musk. Such faux giveaways are nothing new within the cryptocurrency house, however would this one have occurred if Elon Musk wasn’t already inserting himself on the entrance and heart of the cryptosphere?
Regardless of the reply, Spanos believes Musk’s time can be higher spent truly utilizing and implementing blockchain applied sciences, and inventing methods for folks to succeed in his personal degree of financial freedom.
“If I had been Elon, I might be double checking my penetration checks, and spending extra time implementing blockchain options — and discovering methods to assist the folks rise to their highest degree of freedom,” stated Spanos.