Elon Musk’s “pump and dump” comment is dangerous for the crypto market

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Jordan Belfort, also known as the Wolf of Wall Street, has spoken out against creating dangerous FAD and FUD in recent events and challenged Elon Musk for his comments during the B-word conference.

Speaking to Fox News, the acclaimed writer of The Wolf of Wall Street, now being filmed, expressed concern and dissatisfaction with Musk’s testimony during the conference in which he specifically said, “I could pump but I won’t drop out” and visualized it as irresponsible and dangerous for investors who look up to it when investing in the asset.

“The problem is, it may not pump and tip over. People are using his support and they are pumping and pumping around the hype that Elon creates, so maybe he doesn’t, but others are using his name, ”he said

He was skeptical of the hype that arose in the second quarter Dogecoin rally as investors dumped the assets in the so-called Doge Army while Elon may not have dumped them.

Calculated risk

The author, who admitted having invested in various cryptocurrencies like Bitcoin, Ethereum, and Polygon, stated that he was in it for the long term and invested on a calculated risk basis, not investing what he couldn’t afford to lose, and most importantly did not act on what others thought.

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“I think that people who trade bitcoin in the short term are very dangerous, it is very volatile. Anyone who knows where to go next is lying. Nobody knows where to go next. It is prone to things like statements from Elon Musk and things that happen in China, ”he warned.

More caution

Jordan joins a number of experts who believe that Elon’s use of his position to influence the movement of cryptocurrencies is irresponsible and dangerous.

In June, Binance CEO CZ beat Elon for his irresponsible tweet when the Tesla boss sent out negative comments about Bitcoin that largely influenced investor decisions and caused them a lot of agony after losing. CZ’s reaction came shortly after the emergence of Musk’s viral bitcoin meme, which caused a market frenzy.

“Greater power with greater responsibility, great. Great force with random “humor”, not great and not funny, ”he said.

Other notable figures like Congressman Warren Davidson, Michael Saylor of Microstrategy, Anthony Pompliano of Morgan Creek, and Bitcoin’s Stock-to-Flow inventor Plan B have previously criticized Musk for inconsiderate comments that were only used to keep prices in his favor to influence. Elon Musk had previously come under the SEC’s radar for fraudulent market manipulation allegations and was subsequently fined.

It’s up to investors to ignore Elon

According to Jossie Welland, a senior attorney with the UK Chamber, Elon Musk’s tweets, jokes and announcements can be perceived as market manipulation and are criminal offenses with a maximum penalty of 7 years and / or an unlimited fine. However, she is skeptical of whether the SEC’s involvement would affect Musk’s behavior and of course leaves it to market forces to deal with him.

“His apparent impact on the crypto space and markets in general has not been curtailed since his last SEC fine. And it’s unlikely that subsequent enforcement action would have any impact on that, ”she says.

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