March 4, 2024

Elon Musk's tweets lead to multi-million dollar loss of followers

Elon Musk is the godfather of cryptocurrency, or an evil genius who pursues personal interests and leads the public to theShortdoge-wire? Former SEC analyst Mark Powers believes regulators should check Musk's crypto tweets.
Elon Musk's tweets lead to multi-million dollar loss of followers

In September 2018, Elon Musk was already accusedUS Securities and Exchange Commission (SEC) fraudulently for posting false and misleading tweets. Tesla and Musk agreed to pay $ 20 million from each side for an out-of-court settlement. These funds went to the treasury, but the company's shareholders never received compensation for the alleged financial damage. Ilona was also obliged to coordinate tweets about the company with the regulator.

In 2019, the US Federal Trade Commission(FTC) has issued regulatory requirements for influencers and celebrities to report publicly when they benefit from recommending a product. So, Floyd Mayweather and DJ Khaled have already been called to responsibility for PR of cryptocurrencies, but Elon Musk somehow escaped the attention of regulators.
Elon Musk's tweets lead to multi-million dollar loss of followers

Image source:cryptocurrency exchange StormGain

In recent years, Elon Musk has been actively promotingDogecoin and even offers to make it the currency of Mars. As a result of the PR campaign, the meme coin became the top 7 in terms of capitalization (at its peak - No. 4), and about 29% of Americans now know about Dogecoin, while only 21% of Americans know about Ethereum, according to a survey from the Harris Poll and CouponCabin.

Elon Musk's tweets lead to multi-million dollar loss of followers

Image source: twitter.com/elonmusk

Elon Musk believes that it is enough to increaseDogecoin block volume is 10 times larger to make the cryptocurrency #1. Vitalik Buterin reacted to this, explaining the impossibility of such a breakthrough without leading to its extreme centralization, and this, in turn, destroys the main value of the blockchain network. To which Elon simply laughed it off:
Elon Musk's tweets lead to multi-million dollar loss of followers

Image source: twitter.com/elonmusk

Former SEC analyst Mark Powers believes thatregulators should carefully study the posts of Elon Musk, as his actions can lead to multi-million dollar losses of subscribers. Plus, Musk’s words may hide a personal interest.

When Bitcoin hit $ 60K in Marchand once again became one of the most popular searches, Tesla announced the sale of cars for cryptocurrency. But Elon Musk, in pursuit of hype, did not take into account that the top officials of China, the largest automotive market, are negatively disposed towards cryptocurrencies.

Tesla instantly became an objectionable company, andModel 3 sales in China plummeted by nearly 30% in April (officially attributed to a general downturn in the electric car market). Musk had to recognize Bitcoin as an environmentally friendly currency and refuse to accept it, bringing down the crypto market and turning crypto enthusiasts against himself. But back in early 2018, the New York Times wrote twice about the problem of Bicoin's energy consumption, so this is not news.

We will not touch on big savings rumorsIlona at Dogecoin, however, is forced to agree with Mark Powers: Musk has a large fan audience that can act to their detriment under his influence. Elon failed to improve Tesla sales in the wake of the popularity of Bitcoin, and he easily abandoned the idea. And those who bought on highs using leverage ended up at a broken trough.

Analytical group StormGain