Tesla, MuskMania and crypto consequences

The crypto world has been taken by the storm, not in search for Satoshi Nakamoto, not because some dark market owner has been arrested, not because something has changed in how blockchains work.

The last month focus was on Elon Musk, the crazy billionaire behind Tesla and SpaceX, who decided to turn to cryptos and created havoc in the markets (be that Dogecoin, pumped through his tweets, or Bitcoin, pumped by investors after Tesla bought $1,5 billions in Bitcoin).

Tesla, the purchase of $1.5 billion in Bitcoin had been anticipated on January 2

The author of the post on Reddit is of German nationality

The story about a post that appeared on January 2, in which a Reddit user had anticipated tesla’s purchase of $1.5 billion in Bitcoin, is causing a stir. On which the New York Post published an article that is causing many questions from cryptography enthusiasts.For obvious reasons, especially in the light of the market manipulations of the last few days. Elon Musk himself has been accused of not exactly veiledly, due to his repeated tweets of support for Bitcoin and Dogecoin. It now appears intent on investigating the US Securities and Exchange Commission(SEC).

The identity of the Redditor protagonist of the resounding anticipation has been revealed

A post appeared on Reddit on January 2, anticipating Tesla’s intention to invest $1.5 billion in Bitcoin. Published by a certain Tslainsider, the post had been quickly removed. However, it impressed many Reddit users, who had an easy game to remember more than a month later. When the investment of the automotive company founded and directed by Elon Musk became a reality.It was the New York Post that took up that strange story, publishing the email sent to the newspaper by a 24-year-old German citizen, a certain “Hendrik”, who has now taken responsibility for the feat. Claiming to be under the influence of hallucinatory substances when he made his prediction, to be understood as the work of a pure and simple troll.

Get 5% discount on Binance fees!

Why Hendrik’s admission?

Many wondered, after the New York Post article, why Hendrik admitted his responsibilities. The response could be linked to the outcry sparked by the affair in international news organizations such as Reuters and Bloomberg. Such as to have aroused in him the fear of possible legal consequences, especially in light of what is happening over the last few hours around the repeated posts of Elon Musk. Accused on many sides of being a real attempt to manipulate the markets.

Public opinion is increasingly sensitive to attempts to manipulate markets

If Elon Musk is currently in the eye of the cyclone, given that even the SEC seems intent on asking him about the pump and dump on Bitcoin and Dogecoin, it should be emphasized that the CEO of Tesla is certainly not the only one to find himself indicted for unclear maneuvers on the financial markets.In fact, the story related to GameStop to the moves of WallStreetBets redditors is continuing to propagate its effects. If at first there was talk of resounding losses by hedge funds that had moved in the open against GME, it now seems that the issue is much more complex. With other speculative funds that would instead collect billions in profits from transactions on the electronic gaming company. So much so that it seems that the whole story is nothing more than a real gang war. In which, however, it becomes difficult to establish the real contours of the facts. And from which, at the same time, the financial markets themselves come out with an even more dented reputation than it already was. A potentially explosive situation.

Tesla, the purchase of BTC and the focus on the conflict of interest

Tesla, the company founded and run by Elon Musk, has invested a billion and a half dollars in Bitcoin. Adding the statement that it intends in the near future to allow payments in BTC for its automotive models.This decision has caused a stir and considerable public debate. Also because mixing with Elon Musk’s tweets he practically started a new BTC rally, that also benefited  the Californian company, which immediately saw its investment remunerated.

The Antonio Gracias case

In the hours after the acquisition, however, the affair began to take on increasingly opaque connotations. Especially for the connection between Antonio Gracias, one of Tesla’s executives who authorized the investment, and two companies operating in the crypto sector.Antonio Gracias, in fact, is listed on Tesla’s website as an independent administrator and member of the audit committee that signed the agreement. Scrolling through his professional biography, however, another fact of no small count immediately comes up. That is, being the founder and CEO of Valor Equity Partners, an investment firm that boasts stakes in Bingo and Erisx. The first provides cryptographic services, while the second is a platform operating in the trading of crypto derivatives.

Antonio Gracias’ interests in cryptography are long-standing

Antonio Gracias is an old acquaintance of Elon Musk. In addition to being a longtime friend, he joined Tesla’s management in 2007, having invested in it two years earlier.With the richest man in the world he also has in common a certain allergy to transparency. As evidenced by the fact that it has been operating in cryptography for a long time, without taking care to put a line between this sector and its other interests. In addition to his commitment to the company he founded, Telegraph, in an article dedicated to the affair, also recalled the investment he made in another encryption company, the Harbour tokenization platform, acquired by Bitgolo last year.

This is a very serious matter

The one who raised awareness of Gracias conduct was Charles Elson, a professor of finance at the University of Delaware, who did not hesitate to say that it would be the executive’s duty to step aside when Tesla purchased BTC. Bill Klepper, a professor of management at Columbia Business School, took up an opinion. He said it would have been much better for Gracias to rely on the advice of a legal counsel to avoid any possible misunderstanding. Not doing so now exposes him to a possible SEC investigation, as Elon Musk does.


Elon Musk now gets up against Dogecoin’s whales

Despite initial complaints about his over-interventionism on cryptocurrencies, Elon Musk doesn’t seem willing to back down in that regard. In fact, as they say, he continues to be always on the piece. So much so that he started a new tweet, in which the founder and CEO of Tesla takes it easy with the excessive concentration of DOGE. In particular, by stating that if those who have too many tokens do not sell a part of them, they will stop supporting the project. A threat not to be taken under the leg, considered the following of the richest man in the world.

Dogecoin: excessive concentration is a real problem

In fact, Elon Musk’s complaint seems entirely well founded. At least in light of the fact that a single market entity currently holds 27% of the entire market capitalization. Given that it amounts to more than $7 billion, this means that it owns the annual GDP of a small state.While more than 50% of doge’s entire circulation is in the hands of the top 20 addresses in terms of size. Some suggest that these may be cryptocurrency exchange accounts that hold Dogecoin as a reserve in their cold wallets, but at least at the moment none of them have made admissions to that effect.

If Dogecoin’s whales persist, Musk could get off the ship

During a discussion on Twitter, one user asked Elon Musk what would happen if Dogecoin’s whales (the big holders) persisted in the token concentration. The answer was not long in coming: Tesla’s number one could then decide to get off the ship and stop supporting the project as it has done so far.It should be stressed, however, that this is not just a question of goat wool. The effects of excessive concentration in a few hands means not only for DOGE, but for any other group, the possibility that prices could be increased artificially and disproportionately to the sole benefit of a few large portfolios. If they suddenly choose to sell, the price of the axis can only collapse. Overwhelming small investors.

MarsCoin flies thanks to Elon Musk’s tweets

Elon Musk continues to be a real factor in the cryptocurrency market. Despite initial criticism from some observers about his social activism, tesla’s CEO doesn’t seem intent on putting a brake on his attendance.As evidenced by what happened after a tweet of his in which he mentioned a potential MarsCoin. Probably to be understood as a cryptocurrency to be used during the budgeted colonization of the red planet. And which, instead, was taken as a real indication towards an existing token, MarsCoin precisely.

MarsCoin: the token already exists

MarsCoin is a project launched during 2014. Since its inception it has had a fairly gram life, with a price usually attested to around 0.20 dollars. After Elon Musk’s tweet, however, it gave rise to a resounding growth. Such as to bring it to as much as $2.50, of course its all-time high.While it has folded to just over a dollar in recent hours, its rally has still been noteworthy. And it is not excluded that he can resume in the next few hours.

MarsCoin’s goal is the same as Elon Musk’s

It should be stressed that the initial ambition of the working group gathered around the project was precisely to make MarsCoin a vehicle for the financing of the first human settlement on the red planet. In practice, interested parties should extract the token to Earth and then transfer a copy of the blockchain to Mars, when the technology has developed properly.A goal that is also common to tesla’s CEO’s vision. The photo of which stands on the MarsCoin website, although there is no real relationship between the parties. If, in fact, Musk founded a company, SpaceX, intended precisely to promote the conquest of Mars, there is no correlation between the two entities.

It’s Muskmania now

What happened in the last few hours around MarsCoin, clearly proposes what can now be considered Muskmania. In fact, a social outreast of the richest man in the world is enough to provoke real earthquakes on the markets.A trend that, however, begins to show more than one problem. So much so that some observers openly accuse him of being a real disturbance on the markets. A disturbance which, moreover, could soon encroach on real hypotheses of much more serious crime.

Elon Musk’s pump and dump starts to make you think

Just think of what happened with Tesla’s officialization of the $1.5 billion investment in Bitcoin. After which the cryptographic icon began to grow intensely again, breaking through 50 thousand dollars. It then made a significant profit from Elon Musk’s company.So much to bewilderment at a time when financial markets are having to deal with pump and dump. That is, the action promoted by more or less substantial groups of redditors, such as those of WallStreetBets, determined to put the infamous hedge funds in check. Repaying equally the so-called Strong Hands of the markets, for decades accustomed to feasting on the remains of small savers affected and sunk by practices such as selling in the open.

What you need to know about affiliate links.
 This page may present investment-related assets, products or services. Some of the links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky!
Btctools is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused by the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and invest only within their financial possibilities. This article does not constitute investment advice.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.