After the notorious breakup meme tweet by Elon Musk, Bitcoin had fallen dramatically.
Considering the harm a given case brought to the crypto community, should Elon Musk be prosecuted and plead guilty?
In the new episode of Stobox Insights, learn about:
🔸 What is considered to be market manipulation;
🔸 Can Musk’s actions classified to be so;
🔸 The most apparent deciding factor delimiting an intentional market manipulation and any other content.
As with all tradable securities, the price of a digital token depends on many different factors. One of the specific features of most digital currencies is extreme volatility. Some investors become liquidated and suffer huge losses as a result of margin calls.
Bitcoin is not issued by a single entity like a central bank. Instead, it is maintained by a network of so-called “miners. Tesla CEO Elon Musk tweeted that the electric vehicle maker would suspend car purchases using Bitcoin, citing environmental concerns. As much as $365.85 billion was wiped off the entire cryptocurrency market, it did pare some losses. Bitcoin, Ethereum (ETH), and XRP were all sharply lower.
Issuance behavior can be explained as maintaining a decentralized system of exchange rate pegs and acting as a safe haven in the digital asset economy. Some of the major cryptocurrency exchanges such as Binance use Tether, saying it helps provide liquidity and can be used to facilitate transactions between different digital coins and tokens. Major investment banks like Goldman Sachs and Morgan Stanley have also sought ways to allow their wealthy clients to get bitcoin exposure.
Cryptocurrency Spoofing is the process of influencing the price of a digital currency by creating fake orders to manipulate the market.
Traders do this by placing large buy or sell orders without the intention of ever filling them. Tether is always backed by traditional currency and cash equivalents, the rally in Bitcoin is being driven by more institutional investors buying into the market.
Elon Musk’s news includes more and more provocative statements issued by him. The level of bitcoin transactions has fallen due to the breakup of Musk tweet. The Tech industry and crypto market, as well as the US economy, are strongly tied to the Dogecoin founder. Currently, Tesla stocks are also falling. This situation attacks the personal finance of everyone who had earlier invested in these companies.
00:00 — Intro
00:01 — Crypto Market and influence on it
01:43 – Disclaimer
02:02 — What is considered market manipulation?: Misinformation
03:42 — Information asymmetry
05:40 — Can the actions of Elon Musk be classified as market manipulation?
05:51 — Was there a price impact?
06:11 — Were the tweets misleading?
07:50 — Was there a personal gain?
08:37 — Last Words
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