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Elon Musk Suddenly Offers Backing of Crypto Again — Markets Unmoved

Published September 1, 2023 2:55 PM
Omar Elorfaly
Published September 1, 2023 2:55 PM

Key Takeaways

  • Could recent moves indicate Elon Musk is all for crypto, again?
  • The tech billionaire is famous for having a fickle stance on crypto.
  • X crypto trading  Could be a reality. Will it live up to its hype?

In a classic Elon Musk way, the tech billionaire and head of X (formerly Twitter) responded  to a user on his social media platform who criticized the crypto industry calling it “so f*cking lame”. 

Musk’s “Troll post of the day” response may come off as a gag to most, but it highlights his ever-changing interest in crypto.

Musk’s interest in crypto trading has been marked by fluctuations that have caught the attention of many.

From his large Bitcoin purchase and subsequent sale, citing climate concerns, to his endorsement of Dogecoin, even enabling its use as a payment method for Tesla products.

In the most recent news, Musk’s X acquired a crypto transmission license, becoming legally capable of offering crypto trading services to users.

Has Musk Always Been Interested in Crypto?

Before completing his acquisition of Twitter (now X), a series of messages  by the tech billionaire showed his intention for the social platform.

Among the most interesting texts, one says: “I think a new social media company is needed that is based on a blockchain and includes payments.”

The idea could potentially bolster the argument for Musk’s genuine interest in launching a blockchain-based cryptocurrency trading and payment company. However, doubts arise when one considers Elon’s previous decisions that had a substantial impact on the Bitcoin and cryptocurrency market.

In 2021, Elon Musk/Tesla invested $1.5 billion in Bitcoin and used his fame to promote Bitcoin as “the next big thing”. He also permitted Bitcoin payments for products on Tesla website.

In 2022, Musk/Tesla sold 75% of their Bitcoin holdings (making $128 million in profit), claiming the token is driving further damage to the environment.

In 2023, Musk started promoting a different token, Dogecoin. He also temporarily replaced Twitter’s blue bird logo with the Dogecoin one, boosting interest for the token.

However, only when Elon Musk decided to include Dogecoin in his announcement for rebranding Twitter to X the token price notably increased.

X For Crypto

Recent crypto trading licenses acquisition by X perhaps solidifies the belief that Musk has a strong interest in crypto. That would also explain why the tech billionaire is strongly defending it.

Market reaction to the announcement also reflects the market view on Musk’s interest in crypto.

Investors and stakeholders may be excited about X becoming a new platform for crypto trading. However, following Musk’s guidance on crypto has been consistently uncertain.

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