How Elon Musk affects cryptocurrency prices, review by Crypto-Upvotes experts
Elon Musk manipulates cryptocurrency market with his followers they buy after his every hint.
In recent years, it may have become customary for crypto market participants that Dogecoin’s price reacts to publications and comments by Elon Musk. In addition, he became the owner of the social network Twitter at the end of October. The head of Tesla and SpaceX has openly talked about his love for ‘this meme cryptocurrency and repeatedly hinted at its integration into the Twitter interface.
As the head of Twitter, Elon Musk naturally partially joined the cryptocurrency community. Which settled on the platform at the stage of crypto-business birth. Musk participates in Twitter Spaces broadcasts with opinion leaders from the cryptosphere and comments on high-profile news in his own account. When Elon Musk accepted DOGE Community Influencer’s offer under the nickname @dogeofficialceo to join the broadcast with his followers on December 16, the cryptocurrency meme rate jumped 5%.
Not everyone is happy with the billionaire’s policies as the new owner of Twitter. When, by Musk’s decision, moderators of the social network blocked the account. Which tracked his private jet’s flights. In response, Ethereum ecosystem founder Vitalik Buterin openly called it a manifestation of selective censorship. Which “puts Twitter on the road to authoritarianism.”
Musk uses the Twitter polling interface to get followers’ opinions on various social networking policies. Starting with a vote on the need to restore former U.S. President Donald Trump’s account. Elon Musk got as far as a poll on whether he should stay in charge of the service. By a relatively slim margin, most of the votes were positive. Musk joked that he would leave when he “found some crazy person” to replace him, and that he would then move to the development team. When the vote ended not in Musk’s favor, the price of Dogecoin plummeted more than 10%.
Manipulation of price Dogecoin
Dogecoin holders may remember May 2021, when the price of DOGE hit an all-time high of $0.73 when Elon Musk mentioned cryptocurrency. Which he did during an interview on Saturday Night Live. By June 2022, as the crypto market faced the consequences of the Terra ecosystem collapse, DOGE was trading 90% below its ATH.
The announcement of any initiative by Elon Musk on Twitter, in one way or another, related to payments. Leads to the fact that Dogecoin begins to actively buy up on exchanges, thereby inflating the rate of this coin. In the comments to Musk’s tweets, there are periodic discussions about how this or that algorithmic trading software. It can track its publications and automatically places buy orders on cryptocurrency exchanges at any mention of DOGE.
By and large, DOGE is a speculative asset. The real popularity of the coin is due to Elon Musk. For this reason, criticism of DOGE from the head of Twitter is able to create significant pressure on the price by sellers. The integration of Dogecoin into Twitter or another Musk project. On the contrary, is capable of significantly inflating the price of the cryptocurrency.
In any case, if Elon Musk does leave his position as Twitter’s head, it will definitely push the price of Dogecoin down. The token rate has already tripled on expectations, and now they are rapidly collapsing. The market reaction will be subdued if Musk leaves office but stays with the company. That would give investors renewed hope for the addition of the coin to the social network.
On Dec. 22, Twitter added a feature to track cryptocurrency and stock prices in search results using the TradingView infrastructure of the trading platform. Elon Musk openly praised the team’s work and added that this is one of many product improvements that will be added to Twitter Business.
Rumors about the integration of cryptocurrencies into the Twitter interface have been around for quite some time. In June, some of Ilon Musk’s correspondence leaked online. And in the published messages he says that he plans to build a full-fledged financial system in Twitter. In the presentation of the new functionality of the service published on November 27, Musk intentionally concealed the content of the “Payments” slide.
The publication led to an 8% growth of Dogecoin. However, Elon Musk’s favorite coin is not the only candidate for integration into the social network. Crypto speculators are monitoring any Twitter-related news and looking for crypto-assets. Which could also potentially participate in “financial” integrations of the service.
Not accidental leaks of confidential information for manipulation
Shortly before the presentation was published, some of the source code of Twitter’s app for iOS was leaked. Researchers found elements of Signal messenger encryption in that code. About which Musk has repeatedly advised his followers as an alternative to iMessage or WhatsApp. After news of the details of the leak, the price of Signal’s integrated cryptocurrency MobileCoin (MOB) soared by 300%.
It is also known that Binance invested $500 million in the purchase of Twitter by Musk. And its head Changpeng Zhao said that he was always ready to help integrate into the social network technologies segment of Web 3.0. Following Musk’s deal, Binance launched the Binance Bluebird Index, which included the exchange’s native token BNB, Dogecoin and Musk Network (MASK). A cryptocurrency with a relatively low market capitalization raised the hype. And created a wave about its likely integration into the social network. It also led to an almost 400% rise in its price.
The theory about the integration of the MASK token into Twitter was complemented by the fact that the project’s protocol is used to work with social networks. However, on December 21 the developers of Mask Network announced the purchase of Pawoo.net, the second most popular project on the Mastodon platform. The latter is positioning itself as an open-source competitor to Twitter. As of December 18, Twitter banned links to Mastodon and several other social networks. MASK reacted to the news of Pawoo’s purchase with a barely noticeable increase, incomparable to the price hikes during speculation about Twitter’s integration.
In any case, Musk’s attempts to popularize cryptocurrencies have a positive effect on their acceptance in society. Until new laws are passed, Musk will continue to take advantage of his opportunities and will drive up or down the price of cryptocurrencies.