Elon Musk has a powerful influence on the cryptocurrency market, and his actions and statements regarding Dogecoin (DOGE) can be seen as a form of market manipulation. This statement is based on an analysis of events that took place in 2020-2023, when Musk actively used his influence to shape market sentiment around DOGE.
Evidence of Musk's manipulation of DOGE
1. Using Twitter as a tool of influence:
Musk has repeatedly published tweets about Dogecoin, which had a strong impact on the price of the asset. For example:
• In 2021, his tweets such as “Dogecoin is the people’s crypto” caused the token’s price to rise significantly. After each such statement, the price of DOGE rose by tens of percent.
• The “To the Moon” tweet and the publication of memes mentioning DOGE created a stir among investors.
2. Public Statements and Saturday Night Live (SNL):
• In May 2021, Musk appeared on SNL, where he jokingly called Dogecoin “hype”. After that, the price of DOGE dropped by more than 30% in just a few hours.
• Investors believed that Musk actively played on the contrast: first he increased the price of the asset with his statements, and then created the conditions for its fall.
3. Financial interest:
• According to information from some analysts, Musk owned significant amounts of DOGE through his personal investments. Although there is no official confirmation, this fact may explain his active interest in cryptocurrency.
• Musk also announced that Tesla and SpaceX will accept DOGE as payment for some services, which again caused a speculative increase in the price.
4. Sudden sales and price drops:
• Large swings in the price of DOGE, including sharp drops, may indicate that "whales" (big players) may have been taking profits. Given Musk's influence on the market, it is suggested that he may have been involved in such actions.
Why is this considered manipulation?
• Targeted use of public influence: Musk used his popularity and platform to create artificial hype around DOGE.
• Lack of regulatory control: Since cryptocurrencies are not subject to strict regulation, Musk's actions could not be officially recognized as illegal.
• Emotional influence on investors: Musk created an emotional connection between himself and DOGE, forcing people to invest by relying on his promises.
Expert's conclusion:
Elon Musk may well have manipulated the Dogecoin market through his statements that contributed to the token's price swings. His actions undermined market stability and led less experienced investors to make emotional decisions.
Although the courts did not find his actions criminal, the lack of direct regulation of the cryptocurrency market allowed him to escape responsibility. As a result, such actions indicate the need to increase the transparency of the cryptocurrency sphere and strengthen regulations regarding the influence of public figures on the market.