Elon Musk’s ability to move the crypto markets with his tweets poses a danger to the average investor, says CoinSwap founder Erik Nurm, but the furor created around the Tesla CEO’s social media activity could attract more long-term looks at cryptocurrencies.
Nurm noted that Musk’s tendency to tweet about Bitcoin (BTC), Dogecoin (DOGE), and other cryptocurrencies began shortly after the Tesla boss was banned. tweeting about his own company by the Securities and Exchange Commission.
“Elon has been manipulating the market by creating FUDs around Bitcoin. He’s playing the same game he did with the stock market, ”Nurm said.
“After the SEC banned him from tweeting about Tesla, he shifted his focus to the crypto market, where he can run for free on social media for now,” he added.
The CoinSwap founder sees turmoil in the markets today, largely thanks to Elon Musk’s ever-changing temperament, who appears to be hot and cold. Earlier in the year, Musk announced that Tesla would accept Bitcoin as a payment option for its electric cars, only to reverse its decision weeks later.
More recently, Musk reversed his decision once again, announcing that Tesla would accept Bitcoin as a payment option once 50% of its mining was carried out with clean energy use.
Related: Elon Musk Sets When Tesla Will Start Accepting Bitcoin Payments
But Musk’s erratic nature in interacting with the crypto world could ultimately attract more people to him in the long run, even for the wrong reasons, Nurm says.
“Even though Musk is temporarily causing market turmoil, his participation could be beneficial for cryptocurrencies in the long term as he is attracting new people to cryptocurrencies, albeit for the wrong reasons sometimes,” he said.
Nurm referenced Musk’s newest cryptocurrency toy: CumRocket (CUMMIES), a token purportedly created for use in the adult film industry that quadrupled in price in the space of 10 minutes when Musk began tweeting about it.
“Their efforts to increase the price of certain currencies, such as Dogecoin and, more recently, CumRocket, are potentially more dangerous, as these apparent pump-and-dump schemes could leave many ordinary people penniless.”
Related: Overbearing Arrogance and Greed: Elon Musk criticized for crypto manipulation
It takes a pinch of sodium chloride when interpreting Musk’s tweets, says Nurm, adding that the billionaire CEO may have ulterior motives when he thumbs up or down on a given coin.
“I hope people take all of Musk’s crypto tweets and other comments with a pinch of salt, and they should remember that he has ulterior motives,” Nurm concluded.