In the past 24 hours, there have been whispers that the SEC will investigate whether Elon Musk has been involved in the uptrend in Doge’s price, which led one Twitter user with the username (@RationalEtienne) to joke that it would be “peak 2021.”
The electric car billionaire seemed unfazed by the rumors despite his previous clash with the SEC. Musk’s self-acclaimed penchant for love of dogs and memes has seen him tweet witty comical pictures about Dogecoin. His most recent one was putting the Doge mascot on the moon. This reference symbolizes a trade-speak for volatile price movement, and it can be interpreted to mean an endorsement.
Musk’s Tweet Affects Price Actions on Cryptocurrencies
Also, his announcement of buying Dogecoin for his son caused a huge market movement. It even raised concerns about the focus of the coin and its ownership structure. It is on record that Musk’s tweet has caused the price of Dogecoin to surge by more than 800% this year alone.
However, Musk is known to have publicly stated that he doesn’t consider Bitcoin (BTC) as a form of investment personally or corporately and that he only loves tweeting memes about cryptocurrency. Yet, he continues to tweet about Dogecoin and cause massive price action on the cryptocurrency. An example was his Dogecoin Christmas tweet.
Musk’s enormous following on social media means that his social media activity can have enormous consequences on both cryptocurrencies’ price actions. Thus, it is almost impossible for him to distance meme fun from affecting cryptocurrencies.
Legal experts raised concerns that the SEC would likely investigate the Tesla co-founder when his social media actions cause price volatility on bitcoin earlier in the year. But the world’s richest man doesn’t consider his meme-love and fun activities could cause an SEC investigation into his activities or affect the transformation of Doge into an actual currency.
Musk Doesn’t Seem Bothered.
When Musk had a legal battle with the SEC in 2018, he was mandated to pay some hefty fines and was removed as the electric car company’s chairman. He was investigated for tweeting about production forecasts and taking sole ownership of the company.
It is important to note that publicly-traded companies like Tesla aren’t allowed by law to release projections anyhow. It would seem unfair to investors who must be privy equally to any news that can affect its share price.
However, it doesn’t seem like Musk is yet to stop his twitter activities based on this rumor. Though the SEC supervises stocks and similar securities, it doesn’t oversee cryptocurrency yet. However, his Twitter musings could still put him under intense scrutiny since he has previously had some clash with the agency.
When @RationalEtienne tweeted about it, he responded with the words, “I hope they do; it would be awesome.”
The uproar about a possible SEC probe has caused Dogecoin to trade at the 5.1 cents range, an almost 10% drop in its trading price. As of this writing, the SEC is yet to comment whether the rumors are true.