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“What we’ve seen with Bitcoin is price manipulation by a single very powerful and influential individual,” Magda Wierzycka remarked.
Magda Wierzycka, one of South Africa’s wealthiest women and CEO of financial services firm Sygnia, believes Tesla CEO Elon Musk would have been probed by authorities if his aim had been practically anything other than Bitcoin.
In an interview with Bruce Whitfield this week on the Money Show, Wierzycka stated that Musk’s recent social media behaviour on the price of Bitcoin (BTC) should have prompted an enquiry by the U.S. Securities and Exchange Commission, or SEC, if Bitcoin were more of a traditional firm. The SEC previously charged Tesla CEO with fraud for publishing false and misleading tweets in 2018, and he was said to be under investigation for his pro-Dogecoin (DOGE) tweets earlier this year.
“The [Bitcoin] volatility we have seen is an unexpected function of what I would call market manipulation by Elon Musk,” said Wierzycka. “If that happens to a listed company, he would be investigated and severely sanctioned by [the] SEC.”
According to Sygnia CEO, Musk purposefully inflated the price of Bitcoin (BTC) by tweeting about Tesla’s $1.5 billion BTC acquisition, then “sold a big part of his exposure at the peak.” Musk’s public pronouncements about Bitcoin, as well as his reversal of Tesla’s position on taking the cryptocurrency as payment, amount to price manipulation.
Many have criticised Musk for allegedly manipulating the price of Bitcoin and other cryptocurrencies such as DOGE via his Twitter posts and public appearance on Saturday Night Live — the Tesla CEO played a character called “The Dogefather” and referred to the token as “a hustle.” He also referenced the project CumRocket (CUMMIES) in a series of tweets last week, which likely sent the token’s price up 366 percent, from $0.06 to $0.28.
Though many crypto traders have profited from investing in some of Musk’s initiatives, the claims of price manipulation involving Bitcoin — the cryptocurrency with the greatest market capitalisation of all cryptocurrencies — are particularly troubling for some. The cryptocurrency’s price has dropped more than 43 percent since reaching an all-time high of $64,899 in April, and it is now worth $36,870 at the time of publishing. However, the price of Bitcoin dropped as low as $30,000 last month.
“What we have seen with Bitcoin is price manipulation by a single very powerful and influential individual,” Wierzycka explained.