Elon Musk’s potential to maneuver cryptocurrency markets together with his tweets represents a hazard to the common 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 own company by the Securities and Change Fee.
“Elon has been manipulating the market by creating FUD round Bitcoin. He’s taking part in the identical recreation 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 because of the ever-changing temperament of Elon Musk, which seems to run cold and warm. Earlier within the 12 months Musk introduced Tesla would accept Bitcoin as a fee choice for its electrical automobiles, solely to reverse his decision weeks later.
Extra just lately, Musk reversed his resolution as soon as once more, saying that Tesla would settle for Bitcoin as a fee choice as soon as 50% of its mining was carried out with clear vitality utilization.
However Musk’s erratic nature when interacting with the crypto world might finally entice extra individuals to it in the long term, even when for the incorrect causes, says Nurm.
“Though Musk is briefly inflicting turmoil available in the market, his involvement could possibly be useful for crypto within the long-term as he’s attracting new individuals to crypto, albeit for typically the incorrect causes,” he stated.
Nurm referenced Musk’s latest cryptocurrency plaything: CumRocket (CUMMIES), a token supposedly created to be used within the grownup movie business which quadrupled in value within the house of 10 minutes when Musk started tweeting about it.
“His efforts to drive up the worth of sure cash, like Dogecoin and extra just lately CumRocket, are doubtlessly extra harmful as these obvious pump-and-dump schemes might depart many extraordinary individuals out of pocket.”
A pinch of sodium chloride is required when decoding Musk’s tweets, says Nurm, who added that the multi-billionaire CEO could have ulterior motives when he offers the thumbs up or thumbs down on a given coin.
“I hope individuals 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.