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The Tesla CEO was chastised for his cavalier attitude to affecting bitcoin prices.
Elon Musk, CEO of Tesla, has been chastised for exercising what many see as reckless influence on the cryptocurrency market. Throughout the most of 2021, Musk took to Twitter on a daily basis to publish jokes and hot takes on several cryptocurrencies, including Bitcoin (BTC) and Dogecoin (DOGE).
Musk quickly added a new cryptocurrency to that list: CumRocket (CUMMIES). CumRocket is billed as a “revolutionary deflationary token” geared for the pornographic film business.
On Friday, Musk posted a cryptic tweet with three words listed: Canada, USA, Mexico. Observers interpreted this as Musk cheekily writing the word “CUM,” and within hours, the price of a little-known token called CumRocket more than doubled.
Fast forward 24 hours, and Musk was at it again. This time he posted a sequence of emojis that could reasonably be interpreted as “CumRocket to the moon.”
💦🚀 –> 🌙
— Elon Musk (@elonmusk) June 5, 2021
CumRocket’s price rose from $0.06 to $0.28 in just 10 minutes, a 366 percent gain. The speculative pump did not continue long, and by the time this article was published, the CUMMIES token price had dropped down to roughly $0.07.
Nick Spanos, co-founder of Zap Protocol and one of the earliest Bitcoin (BTC) exchange operators, told Cointelegraph that he believes most of Musk’s market-moving activities is intended to acquire more assets at a lower price than he would have otherwise.
“Musk harmed countless people less fortunate than he in his selfish shilling and moves to get cheaper coin,” said Spanos.
If accurate, Musk’s revelation that Tesla had acquired $1.5 billion in Bitcoin and that the automobile manufacturer would accept Bitcoin as payment would be a great example. Less than a month later, Musk reversed his stance on Bitcoin, which he chastised for its environmental effect, and abruptly withdrew it as a payment option from the Tesla website.
Even if Musk just became disinterested in Bitcoin, his tweets to nearly 50 million followers amount to irresponsibility and an abuse of trust, according to Spanos.
“People believe in Bitcoin because it’s a path to monetary independence from central banks, and he’s attacking their trust with reckless tweets and abuse of influence. Instead of being a role model, he is revealing less favorable primal characteristics.”
Musk has previously said he would welcome any investigation by the United States Securities and Exchange Commission into the effect his tweets have had on the crypto market. Spanos said Musk’s arrogance and greed will have to be paid for, whether to the SEC, or anonymous hacker groups, such as Anonymous. (Anonymous has since denied responsibility for the video addressed to Elon Musk.)
“Arrogance and greed cannot shield him from consequences. If the SEC isn’t going to sanction him for manipulating markets like they did before, perhaps the activists will,” said Spanos.
“It’s not hard to imagine a scenario where people who trust their lives with his technology could see incidents where that trust maybe even catastrophically ends,” he added.
As reported by the BBC, one woman lost 9,000 British pounds ($12,700) in a Bitcoin scam that was falsely presented as an official giveaway by Elon Musk. Such fake giveaways are nothing new in the cryptocurrency space, but would this one have occurred if Musk wasn’t already placing himself at the front and center of the cryptosphere?
Whatever the answer, Spanos feels Musk’s time would be better spent using and implementing blockchain technology, as well as devising means for others to achieve their own degree of economic independence.
“If I were Elon, I would double-check my penetration tests and spend more time implementing blockchain solutions — and finding ways to help people achieve their highest level of freedom,” Spanos added.