Elon Musk’s Cryptic Crypto Journey

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Tech billionaire Elon Musk has once again captured the attention of the crypto community with his enigmatic tweets. This isn’t the first time Musk has shared cryptic messages, leaving the crypto world abuzz.

Musk’s recent tweet simply consisted of a preposition and two letters – “In X S.” The XRP community immediately drew a connection to their beloved XRP logo. Notably, this time, the Shiba Inu army also joined the excitement, likening the “S” to SHIB. One SHIB team member pointed out that “In X Shi” might signify the stablecoin ‘Shi,’ currently under development by the Shiba Inu team. This stablecoin will play a vital role in the SHIB ecosystem, alongside other tokens like SHIB, BONE, LEASH, and TREAT.

Elon Musk’s tweet featuring a meme from “The Lord of The Rings” movie instantly resonated with the crypto community, thanks to one powerful word – “hold.” In the meme, characters Frodo and Sam discuss what they are holding onto. “There is some good in this world, Mr. Frodo. And it’s worth fighting for,” Sam says. Crypto enthusiasts were quick to spot the significance of the term “hold,” a beloved concept within the crypto community, known as “hodl.”

Prominent XRP enthusiasts expressed that “XRP is worth fighting for and holding,” followed by a “face with tears of joy” emoji. Nexo crypto platform chimed in with “HODL all that is good.” Even Dogecoin co-founder Billy Markus (also known as Shibetoshi Nakamoto on Twitter) found wisdom in “The Lord of the Rings,” sharing another meme from the movie with a quote by Aragorn, “Deeds will not be less valiant because they are unpraised.”

FTX, Bots and Twitter

A recent study by the Network Contagion Research Institute has shed light on the immense influence of bot accounts and Elon Musk’s tweets on the prices of FTX-listed cryptocurrencies. The study analyzed over 3 million tweets related to 18 cryptocurrencies, spanning from January 2019 to January 2023, encompassing the period before, during, and after Musk’s $44 billion acquisition of Twitter, now rebranded as X.

Using Botometer to identify bot activity, researchers discovered that out of 182,105 unique accounts discussing FTX-listed coins, a staggering 172,451 received “bot” scores. These bots played a pivotal role in pumping the prices of crypto coins traded by insiders of the defunct Alameda Research. Alameda Research, a sister firm of Sam Bankman-Fried’s FTX platform, went bankrupt in November. Following promotional tweets by FTX, bot-like comments began to dominate discussions about these 18 cryptocurrencies, accounting for nearly half of the chatter.

In June, Musk boldly claimed to have eliminated 90% of scams on Twitter (now X) since his takeover. However, no concrete data has been provided to substantiate this assertion. While X is now implementing charges for new users to deter bot activity, these efforts may not entirely eradicate the bot problem. Previously, charging users failed to prevent phishing scams by verified accounts, which are commonly exploited by crypto-focused bot armies and scammers.

Instances of Musk’s Influence: Crypto Price Movements

Elon Musk’s tweets have long been a subject of fascination, and they continue to impact the crypto market. In particular, his mentions of altcoins like PEPE and PSYOP triggered significant price spikes. A May 13 tweet featuring a Pepe the Frog meme led to a more than 50% increase in the price of PEPE within 24 hours, fueled by a combination of genuine and bot-driven activity.

On May 12th, Bitcoin was experiencing a steady decline, having dropped from its all-time high just a month earlier. At 5:00 p.m., Bitcoin was trading around $55,000, but at 6:06 p.m., Musk tweeted that Tesla would no longer accept Bitcoin as payment due to environmental concerns. This single tweet caused Bitcoin’s price to plummet more than 5%, resulting in a loss of around $150 billion by the end of the day.

Read: What Elon Musk ‘s Twitter Takeover Means for Dogecoin 6 Months From Now?

elon musk snl poster where he talked about crypto

Musk’s tweets also significantly affect Dogecoin, a cryptocurrency initially created as a joke. His tweets have caused dramatic price surges, but they’ve also contributed to wild fluctuations. For example, ahead of his appearance on “Saturday Night Live,” Dogecoin was trading at around 73 cents. Still, during a skit on the show, Musk’s jokes about Dogecoin led to a 30% price drop by the end of the episode.

In 2021, he tweeted the simple phrase, “Dogecoin is the people’s crypto.” This seemingly innocuous statement resulted in an astounding 50 percent spike in Dogecoin’s value within a day. Over the course of a year, Musk’s tweets in support of Dogecoin contributed to an incredible 15,000% surge in its value.

Read: Twitter Changes logo to Shibu, DOGE Price Surges

Younger investors are drawn to Musk’s vision of the future and perceive him as a rebellious figure. Musk’s enormous Twitter following, which exceeds 56 million, plays a pivotal role in his influence.

Elon Musk’s Quest to Decentralize Twitter

The goal of decentralizing Twitter is closely tied to addressing some of the significant challenges and criticisms associated with Web 2. Web 2 refers to the current landscape of the internet, dominated by centralized tech giants. These companies operate as data silos, collecting and leveraging user data for targeted advertising, often raising concerns about privacy and surveillance.

In the transition to Web 3, reimagining the advertising model becomes crucial. Platforms need to find alternative ways to engage users without resorting to data collection and surveillance. It’s a challenging task that requires a paradigm shift.

Read: Stocks and Crypto Trading Now on Twitter

Twitter has taken steps to integrate cryptocurrencies and digital assets into its operations, signifying its recognition of the crypto space’s importance. Musk’s vision for Twitter as a haven for free speech and open dialogue could reshape the platform.

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