Famous businessman Elon Musk had a significant impact on the crypto market in 2021, without any doubt. First, he backed up to Dogecoin, and people who invested in Dogecoin made really good profits thanks to Elon Musk, but some people criticised Elon for boosting up meme coins, on the other hand, some of them appreciated this situation.
Elon Musk had implemented Bitcoin purchases for Tesla cars, but afterwards, he removed it because of the Bitcoin miners energy usage, which was unhealthy for the world. Dogecoin became a huge meme, and people backed up the idea of “Dogecoin to the moon.” with Elon. Yesterday 26th of December, Elon again promoted a meme coin called Floki Inu or Floki Santa, according to how he calls it. Floki Inu coin made a huge profit and this made people happy too.
Why is Elon Musk so influential?
One of the significant features of Elon Musk is that he loves having discussions with the community instead of looking down on them. He actually listens to people, lets people criticize him, and even bothers to answer those critiques. He is also creative, which makes people follow Elon more than usual. These features increase his influence over the crypto market, but as a reminder, this is also considered as manipulative too.
Crypto market manipulation
People with enormous influence, such as Elon Musk, can easily manipulate the market. He can promote any coin, and that coin, without a doubt, will increase no matter how bad the coin is. This is not a healthy situation for the market because this could cause liquidation in some cases. Of course, some people will profit from that coin, but it will not be the same for everyone. So a standard warning again is that always be careful what you invest in as a cryptocurrency.