Elon Musk is no longer the king of the industry?
We all remember how the billionaire entrepreneur Elon Musk, who is extremely interested in the Blockchain, influenced the course of the first coin and the entire market as a whole. The entrepreneur has repeatedly spoken out in support of digital assets, and also, with the help of simple posts on social networks, raised the ratings of Bitcoin. It was enough to mention one coin – its rate reacted instantly and went up. But, unfortunately, it turned out differently today. Elon again wrote about one of the most controversial projects – the DOGE coin. What happened to the price of the asset? Let’s figure it out.
How did Elon Musk influence the price of digital assets?
First, it is worthwhile to figure out why the course of the course of digital assets changed so much from the actions of Elon Musk. The industry has tremendous respect for this billionaire. After all, we all use advanced technologies, and Elon is engaged in their creation. Thus, due to the similarity of interests and real contribution to everyday life, the billionaire evokes the respect and trust of an ordinary user. Positive emotions are so strong that many are ready to invest their own money, just one word from Elon. Something similar happened with DOGE earlier. After a single mention on social media, the asset grew by 20%. This is a phenomenal indicator, thanks to which the experts coined the term – the Elon Musk effect. But it worked differently today.
The entrepreneur posted some funny pictures about digital assets and investments in general. However, users, seeing new mentions of Elon Musk about cryptocurrencies, began to instantly sell Bitcoin. The cost dropped below the level of 37 thousand dollars. The creator of DOGE replied to the publications. The entrepreneurs exchanged several messages, after which the value of DOGE fell by 8%. The situation is so incomprehensible that the founder of Binance even asked people not to panic. The emergence of Musk in the industry is now causing an unhealthy excitement, which they tried to suppress by asking to keep funds and not making hasty decisions.
Why is the billionaire no longer trusted?
As we can see, the community now reacts completely differently to the publications of a well-known entrepreneur. Consequently, the Elon Musk effect works in the opposite direction. Many believe this is due to the recent situation with DOGE. After all, ordinary users began to invest in this asset without understanding its device, without learning about the key advantages. Many began to invest only because Elon Musk spoke about him. The artificial rise in value allowed many to carry out the usual speculation – the value increased, the coins were sold, and the real ideological investors lost their own money.
Moreover, critics and financial analysts believe Musk does not understand his importance to the industry. In their opinion, a figure of such status cannot speak lightly about this or that asset. But Elon Musk, apparently, thinks differently. When will this ill-fated effect pass? It is hard to say. So far, the community is extremely sensitive to everything related to the head of Tesla. People are simply afraid of repeating the DOGE story. Therefore, they prefer to sell everything Musk talks about in advance.
So this is also the wrong approach. Yes, you can listen to Elon’s opinion, his words can be interpreted in different ways, but not a single statement can be taken as the only source of information. This is the wrong approach. We strongly recommend that you use digital analytics responsibly, monitor your investments, and stay calm. The main thing is to stay up to date with the latest news in the digital industry. Be with us. We publish only high-quality, interesting material about everything that happens in the world of Blockchain and digital currencies. Thanks for attention. Good luck!