US SEC to investigate Elon Musk… ‘Doji Coin’ allegedly manipulating the market price
It is spreading that the U.S. Securities and Exchange Commission (SEC) launched an investigation into Elon Musk, Tesla’s chief executive officer (CEO), allegedly involved in manipulating the market price of Dogecoin. Elon Musk responded, “I hope so.”
According to foreign media such as YouTube on February 25, 2021 (hereinafter referred to as local time), the SEC is known to be investigating a tweet related to DOGE posted by CEO Elon Musk.
This is because Elon Musk encouraged a rise in the price of Dogecoin, a cryptocurrency. Regarding the news of the SEC investigation, Elon Musk said on his Twitter, “I hope the SEC will investigate! It would be great.”
After the press release, Dogecoin fell to $0.016. As of 1:46 p.m. on February 26, Dogecoin is trading at $0.0507, down 9.07% on the Token Post Market.
Elon Musk tweets cryptocurrency market slump
Elon Musk’s words and actions are shaking the cryptocurrency market. It helped bring about the Dogecoin craze. He has been a supporter of Dogecoin on Twitter several times since April 2019. This year, it also triggered a price surge by mentioning’Doji Coin’ on Twitter.
This year, Dogecoin received attention in the’Game Stop’ incident, which symbolizes the rebellion of ant investors. The GameStop incident was a case in which 4 million individual investors fought against the short-selling force by mobilizing around the US community Reddit’s stock chat room’Wall Street Betz’.
In the stock chat room’Satoshi Streetbets’ named after the founders of Bitcoin’Satoshi’ and’Wall Streetbets’, a movement to “make Dojicoin a great thing comparable to Gamestop” took place, and mass purchases began.
In response, Musk ignited the craze for Dogecoin by publishing’Dogue’, a parody of the fashion magazine’Vogue’. Dogecoin prices soared more than 800% in one day on January 29, right after Elon Musk’s tweet was posted, and once rose to the 7th place in the market cap.
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On February 11th, Musk said on Twitter that he bought DOGE for his son Lil X. On February 15th, he said, “We will fully support Doji Coin in case of a massive sale.”
As Elon Musk joined the Bitcoin ranks, it also had a huge impact on the price of Bitcoin.
Tesla, run by Elon Musk, bought $150,000 worth of Bitcoin on February 8. At the news of the bitcoin purchase, the bitcoin price soared more than 20%, surpassing the first $48,000. Since then, Elon Musk has fueled the market with buzzing tweets about Bitcoin and cryptocurrencies.
With bitcoin price hitting a high of $58,000, Musk suddenly changed his attitude toward bitcoin. On February 20, Musk left a tweet saying, “Bitcoin and Ethereum prices seem to be high”, and the bitcoin price fell 5-8% from the previous day.
Elon Musk manipulates stock prices with tweets?… Fine of 20 million dollars
Earlier, Musk had been investigated by the SEC after posting an explosive tweet on Twitter saying it was considering a plan to delist Tesla.
Musk on August 7th, 2018, on his Twitter account, “We are considering making Tesla a privately held company for $420 per share. Funds are secured.” In his remarks, Tesla’s stock soared 11%.
Investors argued that “Musk’s tweet moved the market a lot,” and that “Musk artificially raised Tesla stock prices, violating US securities laws.”
The SEC launched an investigation, and Musk was fined $20 million (about 22 billion won). About 15 days later, he canceled the delisting statement.
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