It’s been a wild month for Elon Musk and Bitcoin, with the Tesla CEO showcasing the powerful nature of his Twitter account once more.
The ‘Technoking’ of Tesla (NASDAQ: TSLA) is up to his old tricks once more, causing widespread havoc among the crypto markets once more.
This time, he’s implying that Tesla will sell all of its Bitcoin assets, then quickly backtracking…
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Are you familiar with the concept of ‘market manipulation’?
By the book definition: market manipulation is the act of artificially inflating or deflating the price of a security or otherwise influencing the behavior of the market for personal gain.
It’s a bad thing, as I’m sure you’ve guessed, and quite illegal.
Luckily, retail investors have the likes of the Securities and Exchanges Commission to largely prevent such moves. Unluckily for crypto investors, no such safety net exists for them.
In steps Elon Musk, who, with a single misunderstood tweet on Sunday about Tesla potentially selling its Bitcoin position, sent the world’s largest crypto asset tumbling to a three-month low. Then he refuted this, and it’s on the rise again. The same has happened multiple times with Dogecoin, which Musk has repeatedly pumped up on Twitter, before sending it tumbling on ‘Saturday Night Live’ last week.
You see the issue here?
For any Tesla lawyers who may be reading this, I am not accusing Elon Musk of market manipulation, as there is no real legal basis to prevent what he’s doing. In fact, as it stands, nothing short of an outright ban of cryptocurrencies (as we saw in India earlier this year) is the only way to stop this.
I have no authority or intention of dictating whether one should invest in Bitcoin or not. All I’ll say is that potential investors should be aware of what they’re getting into in this largely unregulated market before buying.
For an expert analysis of what’s going on lately, MyWallSt subscribers can read our recent Insight: Bitcoin, Dogecoin, and Inflation.
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.