Skip to main content

FEATURED POST

When Cryptoverse Meets Metaverse

The term 'metaverse' has been creating a buzz in the world in the last few months, Google search analysis shows that the term 'Metaverse' had a search score of less than 1 in 2020 which grew to 99 in 2022.  At the end of 2021 we also witnessed Facebook change its name to Meta , but its not only Facebook that is focused on the metaverse and its infrastructure, a bunch of tech companies are in the race for the metaverse (Nvidia, Unity, Roblox, Snap etc.) A recent report published by Technavio called, 'Metaverse Market in Finance by Component & Geography Forecast and Analysis 2022-2026' stated that the metaverse market will increase by $50.37bn during 2022-2026.  Another research company, Grand View Research , headquartered in San Francisco expects the global metaverse market size to grow by a compound annual growth rate (CAGR) of 39.4 from 2022 to 2030 But what exactly is the metaverse? Wikipedia describes metaverse as follows: 'Metaverse is a hypothetica

Bitcoin, Dogecoin & the Elon Musk Fiasco


Bitcoin, Dogecoin & the Elon Musk Fiasco


Bitcoin (BTC) and Dogecoin (DOGE) have both been on a roller coaster ride for the past few months and Elon Musk seems to be the one operating the roller coaster. 

It all started on 29th January 2021 when Elon Musk added #bitcoin to his twitter bio. This led to bitcoin jumping by $5,000 in a matter of an hour. The next big jump for bitcoin came in February of this year when Tesla announced that it had bought $1.5 Billion worth of Bitcoin. According to the company's filing with the 'Securities & Exchange Commission', Tesla said that it bought the Bitcoin for "more flexibility to further diversify and maximize returns on our cash"

Bitcoin was not the only cryptocurrency that caught the attention of the billionaire. Elon Musk on February 4th of this year, posted a couple of tweets mentioning Dogecoin, calling Dogecoin 'people's crypto' in one of them

Bitcoin, Dogecoin & the Elon Musk Fiasco

With more tweets on Dogecoin and interest shown by Elon Musk, Dogecoin rose to an all time high of 73 cents in May 2021, an increase of 2335% since his first tweet in February. 

The hype created by Elon Musk might have worked out in the favor of a few individuals, Glauber Contessoto being one of them. Following the tweets from the Elon Musk, Glauber withdrew all his savings, diverted his holdings of Tesla and Uber and invested $180,000 in Dogecoin at a rate of 4.5 cents per coin, two months later, his investment was worth $1 Million. According to CNBC his holdings in Dogecoin has risen to $2 Million in May.

The chart below shows the exponential rise in buying pressure for Dogecoin in April of this year in turn pushing the prices higher

Bitcoin, Dogecoin & the Elon Musk Fiasco

However, Dogecoin came crashing down in May and fell by $0.30 when on 8th May, Elon Musk called Dogecoin a 'hustle' on 'Saturday Night Live'. Dogecoin dropped to $0.40 before the recovery kicked in, the recovery was not caused by investors buying the dip, it was caused by a positive tweet from Elon Musk on 11th May, asking his followers to vote on whether tesla should accept Dogecoin as a mode of payment.

Similar to Dogecoin, Bitcoin also faced a sell off influenced by Elon Musk. On 12th May, Elon Musk pasted the following picture on his twitter account.


Elon Musk announced that Tesla was suspending its vehicle purchase using Bitcoin die to environmental concerns. The question raised here is, didn't Elon Musk know about the energy usage of mining Bitcoin before supporting the cryptocurrency? or was he just manipulating the market to make 
a profit? 

The bitcoin tweet from the billionaire led investors to believe that Tesla had sold or will sell all of its bitcoin holdings, causing a further panic in the market. However Elon Musk took to twitter to clarify that Tesla has not sold any of the bitcoins that it holds.

Elon Musk has gotten into trouble in the past for his market moving tweets. In 2018, the SEC charged Elon Musk with fraud for his tweets regarding taking this company private at $420 per share. 

However, the cryptocurrency market is not regulated the way the stock market is due to which the billionaire can get away with manipulating the cryptocurrency market scot-free. Due to his recent market manipulation of the cryptocurrencies, Elon Musk has been seeing a lot of hate from crypto investors particularly on his twitter handle and social platforms like Reddit.

Unfortunately, tweets and comments from billionaires like Elon Musk and Mark Cuban do sway the markets for the sole reason that adoption of the cryptocurrency by billionaires and influential individuals could lead the asset into the mainstream markets.

Will the manipulation of the cryptocurrency market continue for the rest of 2021? This depends on how investors react to the future tweets from the billionaire. Would it be taken like a grain of salt or as an investment indicator? Only time will tell.

Note: Trading decisions should not be based on the opinion in this article, investors should conduct their own due diligence before buying the cryptocurrency. This article is purely based on my own research and understanding of the cryptocurrency in the article.



Comments

  1. The information in the post you posted here is useful because it contains some of the best information available. Thanks for sharing about bitcoin wallets. Keep up the good work.

    ReplyDelete
  2. This article provided me with a wealth of information about careers security bank. The article is incredibly helpful and offers some of the most useful information. Thank you for sharing it with us.

    ReplyDelete
  3. I'd like to express my gratitude for writing such a helpful article. This article provided me with some useful knowledge. Thank you for sharing about ZuluTrade UK review. Keep up the good work.

    ReplyDelete
  4. During this post, you have shared fantastic content. This article provided me with some useful knowledge. Thank you for sharing about ic markets copy trading. Keep up the good work.

    ReplyDelete
  5. Very well written article about online Social trading platform for investment. It was an awesome article to read. Complete rich content and fully informative. I totally Loved it.

    ReplyDelete
  6. It is a proficient article that you have shared here about Cryptocurrency Exchange Latest News I got some unique and valuable information from your article. Thankful to you for sharing this article here.

    ReplyDelete

Post a Comment