Elon Musk: Is he just making fun of DOGE?

Elon Musk: Is he just making fun of DOGE?

Is Elon Musk just playing the troll in the cryptocurrency community by supporting Dogecoin?

Elon Musk, billionaire founder of Tesla and SpaceX, has praised the revolutionary impact of cryptocurrencies while poking fun at the concept.

In a video by Kevin Svenson, Musk said, „There’s a good Bitcoin Bank chance that crypto is the future currency on Earth.“ Musk also said it would be ironic if Dogecoin (DOGE), invented as a joke, ended up winning.

„What would be the most ironic outcome? That the currency that was invented in jest actually becomes a real currency,“ he said.

DOGE has been at the centre of a massive pump-and-dump fueled by Reddit traders and investors who follow Musk on Twitter and respond quickly to his tweets. And these investors are not few.

A recent report by Blockchain Research Lab titled How Elon Musk’s Twitter activity moves cryptocurrency markets has shown that the billionaire is having a positive impact on the values and trading of digital assets when he tweets about them.

The report states:

„Looking at all events, we can see a significant increase in trading volume attributable to these events.“

The fact that Musk can influence markets via Twitter has raised concerns among some investors given the CEO’s history with the US securities regulator, the SEC.

As CNBC reported, Musk and his tweets were behind the recent 12 per cent rise in the share price of CD Projekt, the developer of the role-playing game Cyberpunk 2077. Musk’s tweet was about fellow drivers in the Tesla Model S Plaid being able to play the game. But his praise for the GameStop controversy could have negative consequences for private retailers who get carried away by the hype.

 It has since fallen back to below 70 US dollars

Musk has run afoul of the SEC in the past because he had tweeted that he wanted to buy Tesla himself at a price of 420 US dollars per share. He and Tesla each had to pay the securities regulator a fine of 20 million US dollars to settle the fraud allegations in connection with the tweet. This settlement had serious implications for the corporate structure of the electric vehicle manufacturer:

„The settlements will lead to sweeping corporate governance and other reforms at Tesla. It also includes the removal of Musk as chairman of Tesla’s board of directors. In addition, Musk and Tesla will have to pay fines.“

„I don’t respect the SEC,“ Musk said after paying the fine.

Despite the regulatory difficulties, Musk said in an interview with 60 Minutes in December 2018 that his tweets would not be censored. He explained:

„The only tweets that would need to be reviewed would be those that are likely to cause a movement in the stock.“