Elon Musk, the tech billionaire who needs no introduction, is proving himself as the world’s most influential person who not only has control of his own companies but also has the power to alter and influence the performance of other companies on Wall Street. All he needs to do is, tweet.
A cryptocurrency created as a joke back in 2013 saw its value jump in leaps and bounds quite recently when Elon Musk decided to tweet about it!
Last week, Musk decided to post a series of tweets about dogecoin. Within a day the world turned upside down for Dogecoin as the world’s richest billionaire, who holds the power to shift global markets, wrote eight words putting his weight behind the cryptocurrency which was not standing anywhere compared with the market leaders Bitcoin or Ether.
The after effects of the Elon’ Tweet will blow your mind away!
Soon after, the cryptocurrency which has mostly been trading at just fractions of a cent surged by 50% value overnight amid the buying frenzy that surrounding the GameStop saga!
The Tesla and SpaceX founder and recently dubbed the richest person in the world tweeted the word ‘doge’ followed by a meme wherein he doctored his face on Rafiki from Lion King holding up the cryptocurrency’s mascot – the image of a Shiba Inu dog above his head in triumph. The third tweet saying it is ‘the people’s crypto’ was quite direct with a message carrying for his followers.
However, later he surprised everyone by claiming that his tweets on dogecoin were meant to be taken as a joke on the invite-only social network Clubhouse.
But, by then, the effects of his tweets were quite visible on the stock market. According to CoinMarketCap, Musks tweet led to dogecoin trade price spike to 0.05 cents from just $0.3 a day earlier. On Friday, Dogecoin trade price peaked to $0.057 taking the Doegcoint’s market capitalisation to $7.39 billion – A dream increase of over $3 billion within a day. The On Saturday, however, it settled at the 15th place in the cryptocurrency league table with the market capitalisation of $6.3 billion, still much higher than the figure before Musk’s magical tweets were out.
Musk’s Tweeting Prowess: A Force To Reckon With
Now, as you must know it already, Musk’s recent display of ironic humour about cryptocurrencies is definitely not a one-off event, but something that he has been doing for quite a long time.
Prior to the dogecoin incident, he also tweeted about wallstreetbets forum, an online community of amateur investors on Reddit. Last week these investors joined forces against big hedge funds who were betting against video game store GameStop. These investors, followed by tweet coming from Elon Musk, caused the sudden rise in the stock price of GameStop by a whopping 400% and left Hedge Funds and Short Sellers losing billions of dollars within 2 weeks only.
These incidents were enough to prove the unparalleled influence and impact of Elon Musk on the market.
“Musk’s tweets have the ability to shoot anything higher because he has a solid following on social media and as a businessman,” says Neil Wilson, an analyst for Markets.com.
While his tweets have the ability to shake Wall Street, but not always produced a fruitful result. His blunt and vocal style of social media handling has caused damages as there were incidents when Elon shot himself in foot with his tweets. A single tweet he had put out in October 2018, cost Elon Musk his chair position at Tesla along with a whopping $40 million fine from SEC.
All in all, this recent incident was once again a clear reminder of Musk’s unnerving influence on people at mass, investors, influencers and, of course, the Wall Street.
With a humongous follower base of 45.6 million, Elon Musk has certainly emerged, and going strong, as one of the most defining voices of Twitter as of 2021. Be it favouring or opposing, Elon’s tweets are presenting an admirable show of stock market which reacts and respond in an unprecedented style.
It now remains to be seen what new storm does the Elon Musk’s tweets rake up next. We will keep you updated on all future developments. Until then, stay tuned.