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Elon Musk slammed for crypto manipulation

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Tesla CEO Elon Musk has been criticized for wielding what many understand to be irresponsible affect over the cryptocurrency market. Musk usually took to Twitter to publish memes and scorching takes on varied cryptocurrencies all through most of 2021, not least Bitcoin (BTC) and Dogecoin (DOGE).

Musk quickly added one other coin to that checklist — CumRocket (CUMMIES). CumRocket is described as a “revolutionary deflationary token” aimed for use by these within the grownup movie trade.

On Friday, Musk posted a cryptic tweet with three phrases listed: Canada, USA, Mexico. Observers interpreted this as Musk cheekily writing the phrase “CUM,” and inside hours, the worth of a little-known token known as CumRocket greater than doubled.

Quick ahead 24 hours, and Musk was at it once more. This time he posted a sequence of emojis that would fairly be interpreted as “CumRocket to the moon.”

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— Elon Musk (@elonmusk) June 5, 2021

Inside simply 10 minutes, the worth of CumRocket jumped from $0.06 to $0.28 — a 366% improve. Predictably, the speculative pump didn’t final for lengthy, and by the point of publication, the CUMMIES token worth had fallen again to round $0.07.

One of many first Bitcoin (BTC) alternate operators and co-founder of Zap Protocol, Nick Spanos informed Cointelegraph he believes a lot of Musk’s market-moving exercise is designed to applicable extra property at a less expensive worth than he in any other case would have.

“Musk harmed countless people less fortunate than he in his selfish shilling and moves to get cheaper coin,” mentioned Spanos.

The prime instance of this, if true, would maybe be Musk’s announcement that Tesla had bought $1.5 billion price of Bitcoin and that the automobile firm would settle for BTC for fee. Lower than a number of weeks later, Musk enacted a swift reversal of sentiment on Bitcoin, which he derided for its environmental affect, and summarily eliminated it as a fee possibility on the Tesla web site.

Even when Musk simply received bored of Bitcoin, his tweets to over 50 million followers quantity to recklessness and an abuse of belief, says 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 beforehand mentioned he would welcome any investigation by the US Securities and Trade Fee into the impact his tweets have had on the crypto market. Spanos mentioned Musk’s conceitedness and greed should be paid for, whether or not to the SEC, or nameless hacker teams, comparable to Nameless. (Nameless has since denied accountability 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,” mentioned 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 lady misplaced 9,000 British kilos ($12,700) in a Bitcoin rip-off that was falsely offered as an official giveaway by Elon Musk. Such faux giveaways are nothing new within the cryptocurrency house, however would this one have occurred if Musk wasn’t already inserting himself on the entrance and middle of the cryptosphere?

Regardless of the reply, Spanos believes Musk’s time could be higher spent truly utilizing and implementing blockchain applied sciences and inventing methods for individuals to achieve their very own degree of financial freedom.

“If I were Elon, I would be double checking my penetration tests and spending more time implementing blockchain solutions — and finding ways to help the people rise to their highest level of freedom,” mentioned Spanos.

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