Elon Musk’s tweets have been the subject of controversy for some time now. Every time the billionaire did a . tweeted about coin, the price of that coin Skyrocket The Tesla CEO has been promoting the coins affectionately referred to as “Shitcoins” on Twitter.
Musk started with Doge in February when he tweeted Doge out. Then there’s the people crypto with Doge. It sent the price immediately coin Rocketing as soon as people start buying coin. Elon will continue to do so with other altcoins.
A hotly debated topic is the legitimacy of these tweets, which appeared to be aimed at manipulating market prices.
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Some have called it a variant of insider trading. But cryptocurrencies still have nothing like insider trading laws as cryptocurrencies are still heavily unregulated. There are no laws governing market manipulation. With high volatility, the potential for manipulation in digital assets is very high.
This is not the first time a prominent figure has used his platform to polish coins. John McAfee was notorious for shilling ICOs without revealing that he was paid to do so. This led to his subsequent arrest in Spain.
John McAfee arrested
During the last bull run that started in 2017, ICOs were a big deal. Dozens of ICOs were being issued daily and the market was saturated.
In order to get their coins in front of more eyes, the people behind the ICO inspired influencers to tweet about them. John McAfee was the obvious choice.
He alleged that he a. collected $105,000 to tweet about coin or ICO. According to the SEC, McAfee earned $23 million for the shillings of the ICO.
Bitcoin price | Source: BTCUSD on TradingView.com
His arrest was not for a straight shilling but it was a part of that. Since there were virtually no laws regarding shillings, the SEC had to take the tax evasion route. Charges were brought against him for failure to disclose proceeds from ICOs and routing his earnings through cryptocurrency to avoid paying taxes.
McAfee was arrested in Spain on October 5, 2020, at the request of the SEC. It is currently being held in Spain. His extradition has not been decided yet. with McAfee claiming that He will die in prison is extradited to the states.
Elon Musk’s Tweets
This isn’t the first time Musk’s tweets have been in trouble. Back in 2018, the SEC requested that Elon Musk be held in contempt of civil because of misleading facts tweeted by the CEO about his company Tesla.
The tweets included things like claiming the automaker would build 500,000 cars a year. Also claiming that he had secured the money when he did not. These tweets are said to have manipulated the company’s share price.
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In response to this, Elon Musk said that his tweets are part of his right to freedom of speech. And that he was free to tweet whatever he wanted.
The result of the ensuing lawsuit was that the CEO would have the freedom to use Twitter, with some limitations. His tweets that are important to shareholders must be reviewed before they are allowed to be posted.
But cryptocurrencies are not included in the list of banned subjects for billionaires. And so, he has resorted to shilling coins on his Twitter account. His latest shilling project is coin roomrocket In which there is no use other than grabbing money. coin More than 70 percent jumped after Musk tweeted about it.
No legal action has been taken against Musk over the tweet. This is because there are no laws that can be said to have been violated at this point.
Featured image from Robb Report, chart from TradingView.com