Here’s Why Elon Musk’s Pivot to Cryptocurrency Can Be ‘Net Good’ for the Space
Tesla's CEO can’t stop tweeting about the unregulated crypto space, as he is not allowed to manipulate share prices with his tweets after his settlement with the SEC, and it is seen by Binance and Lolli CEOs as an advertisement for crypto.
Up until some time ago, Elon Musk was vigorously involved in tweeting about Tesla — remember his infamous tweet of taking Tesla private at 4420 per share — which affected the prices of the shares of the company, which of course, irked the investors a lot.
That stopped after Musk settled a deal on the securities fraud charge brought by the SEC against him in late 2018. The settlement that required him to step down as Tesla’s Chairman, a committee to oversee Musk’s communications, and paying a penalty of $20 million was taken “to prevent further market disruption and harm to Tesla’s shareholders.”
Now that Musk can't tweet about stocks anymore, although a US securities watchdog found him violating the settlement last year, he has switched his attention to crypto markets which are unregulated and won’t get him rebuked by the regulator. DegenSpartan commented,
“My personal conspiracy theory is that since he isnt allowed to tweet shit that fks around with share prices anymore. He does it for cripto cos “not regulated.’”
Elon Musk hyperimmunizing the world on the whimsicality of the words of billionaires is a blessing imo
The floodgates are open now and lots more people who shouldn't talk shit will talk shit
— loomdart (@loomdart) June 4, 2021
Binance.US Chief Executive Officer Brian Brooks meanwhile sees Musk’s impact on the industry as a positive as “it’s a country with free speech,” adding “short-term market panics are never a good reason for anybody to buy and sell.”
“Whether he’s pushing markets up or down, that’s probably good in the long term,” said Brooks, who has been a top banking regulator before taking over Binance.US last month, in an interview with Bloomberg. “If Elon Musk is this interested in crypto, crypto must be pretty important.”
Alex Adelman, co-founder, and CEO at Lolli, a Bitcoin rewards startup, is of a similar opinion who also said, Musk driving attention to the crypto is “net good” for space. Adelman said,
“I think it is great what he is doing, he is driving attention and clearly very influential. Any eyeballs coming to bitcoin making them question money, in general, is a net good for the space, for bitcoin and the people following him.”
As we saw this year, Musk has been aggressively tweeting about cryptocurrencies which have gone beyond Bitcoin now.
While the impact of his tweets on the prices of Bitcoin and Dogecoin has started to slow down, it is still there and irritating the crypto community, especially after his criticisms that sent the prices crashing. DOGE -6.10% Dogecoin / USD DOGEUSD $ 0.21
-$0.01-6.10% Volume 1.78 b Change -$0.01 Open $0.21 Circulating 131.42 b Market Cap 27.23 b 1 d Google Searches for Bitcoin Hit Dec 2020 Level, Interest in NFTs Surpass DeFi Significantly and Matched Ethereum Briefly 1 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 2 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End
This week, after lamenting his breakup with Bitcoin, today, he changed his profile picture bearing the Bitcoin symbol. Just last month, Musk removed Bitcoin from his Twitter profile.
Additionally, he is tweeting about low-cap coin CumRocket (CUMMIES), which surged 110% in response.
In a separate tweet, Musk said he “pretty much agree with Vitalik” in response to Ethereum co-founder Vitalik Buterin’s interview with Lex Fridman, where he talked about Musk's crypto strategy and support for Dogecoin. But Musk didn’t share exactly which part he is in agreement with as Buterin talked about a lot of things, including Musk and many cryptos. ETH -7.05% Ethereum / USD ETHUSD $ 2,879.76
-$203.02-7.05% Volume 25.41 b Change -$203.02 Open $2,879.76 Circulating 117.66 m Market Cap 338.82 b 2 h Cryptocurrency Market Tanks on the Same Old China Ban News, But Investors Who Sell Here Will End Up “Bummed” 3 h JPMorgan says Institutional Investors Have Shown A 'Strong Preference' for Ethereum Over Bitcoin Since August 21 h 1Inch Moves to Arbitrum For Faster Throughput And Lower Gas Fees
“You would make a mistake if you were to ascribe too much sophisticated malevolence or any deep intentionality to the whole process. He's just a human being, and he likes dogs just like I like dogs.”
Buterin also said that Ethereum is not opposed to dog coins; in fact, “I kind of want the fans to feel like Ethereum is – at least a little bit – in spirit itself a dog coin,” he said, adding that if doge wants to bridge to Ethereum, “that would be amazing.”
As for whether Tesla and SpaceX will consider Ether in the future, “I'm sure that if they stay in the cryptocurrency system at all, then they have to at some point.”