Numerous crypto experts and analysts called out Tesla CEO Elon Musk on his massive influence over the value of digital currencies after cryptocurrencies dropped in price over the week. They warned investors to ‘drown out’ Musk’s crypto tweets.
On May 12, Musk tweeted that his company is pulling Bitcoin (BTC) out of their payment options due to ‘environmental’ issues. This immediately caused BTC’s value to fall 12%.
While other factors contributed to the price drop, Musk is viewed by many analysts as one of the main reasons why the value of digital assets took a downward turn.
In an interview with CNN Business on May 24, CEO and founder of crypto lending company Celsius Alex Mashinksy said, ‘People who followed Musk blindly have lost a lot of money. They may have gotten burned and never come back. The crypto community needs to be more responsible in how it explains these assets and the risk. Pundits kept saying we’d never see a down market for bitcoin again because of institutional interest, Square and PayPal, etc. When you hear that, you have to worry.’
Musk tweeted on Monday morning, May 24, a poster of the movie ‘Jaws’ where the image depicts a dollar getting eaten by a giant dog. On top of the poster, the DOGE sign was written in red, bold letters and captioned: ‘You’ll never use dollars again’.
This tweet incited anger among investors. The managing director of a crypto firm called Magnetic Megan Kaspar told CNN Business that she doesn’t understand why Musk is fussing over the meme coin.
‘I still don’t understand what Musk’s perspective on Dogecoin is and I don’t think the world does either. Why does he think it’s valuable? Institutional investors are very thoughtful and are not buying Dogecoin just because Musk is pumping it. But retail investors, who are not doing this for a living, may not be.’
On the other hand, angel investor and digital asset consultant Eloisa Maecheson advised long-term investors to drown out Musk’s tweets and focus on investing in established assets such as Bitcoin (BTC), Ether (ETH) and Ripple (XRP).
‘There is nothing to be worried about if you are a HODLer. But if you are a small investor, you are going to get burned unless you stay away from the meme coins.’
Cryptocurrencies including major assets such as Bitcoin (BTC), Dogecoin (DOGE), and Ether (ETH) took a dip of more than 40% in the past few weeks. On Wednesday, the market value of digital assets dropped to a staggering $1 trillion from its $2.5 trillion value.
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