SpaceX and Tesla CEO Elon Musk is making everyone wonder as his recent social media posts on Dogecoin led to a huge surge in its price.
In a recent tweet, Musk addressed DOGE as a probable “future currency” of the world. He also stated that it would be ironic if DOGE, which was created to mock other cryptocurrency, becomes the ultimate winner.
Meme coin DOGE has been hugely influenced by several Reddit retail traders especially after the Elon Musk pump.
The Elon Musk Pump Shows Control Over Crypto Market
A recent report by Blockchain Research Lab on the effect of Elon Musk’s social media posts on cryptocurrency depicted that the Tesla CEO has a remarkable positive effect on the crypto market. His social media activities on cryptocurrencies determine the increasing value and popularity. Musk’s tweet on bitcoin also showed interesting effects as well. The reports stated that it had identified a significant increase in trading volume in regard to Musk’s Twitter posts.
Meanwhile, some investors have expressed concerns about the Elon Musk effect. Musk’s huge influence in the crypto market has been reported to the U.S Securities and Exchange Commission.
Though the tweets by him have positive effects in most of the cases, it is assumed that his shilling of GME (GameStop) squeeze may lead to a negative effect. After GameStop crossed the $500 level in January, the price has now gone back to the $70 level.
The scuffle between Musk and the U.S SEC had generated after he tweeted that he wanted to obtain Tesla privately at $420 per share. Due to the charges of fraudulency related to his tweets, both Musk and Tesla had to make a $20 million payment to SEC.
In an interview Musk stated that he does not have respect for the SEC. In 2018, Musk said that his tweets are not liable to censorship.
As the Musk effect on the crypto market prevails, traders express mixed reactions about it.