Cryptocurrency investors are showing outrage at Elon Musk's statements about this market. After announcing that he would suspend the use of bitcoin in his company, causing a widespread drop in the value of dogecoin, BINANCE coin and several others, some supporters have moved to draft a response to the Tesla CEO's influence on values.
StopElon is a new cryptocurrency emerging as a protest against the way in which the billionaire manipulates the market through his impact on context, stipulating a clear goal - to acquire enough capital to buy majority shares of Tesla, taking control of the world's most valuable automaker.
StopElon appeared on the Binance Smart Chain with the same "meme" characteristics as dogecoin worth only $0.0000019, jumping to $0.00003679 in 24 hours, reaching a market capitalization of over $17 million in just two days.
Currently, the total offering offers 50% of the coins already in circulation and available for purchase and 40% in "coin burn" for a reduction in supply. One of the project managers, identified as Daniel, explained that the number of coins will be limited and will prevent a large amount of the money from being held back with fees and transaction caps.
Elon Musk is infamous for recklessly manipulating the cryptocurrency market with his Twitter account. He recently did it again, causing a huge fallout across the board when he posted that Tesla will no longer accept bitcoin as payment.
A few weeks ago, Elon Musk was admired for playing a key role in advancing the popularity of cryptocurrencies, but after his appearance on Saturday Night Live, an American television program, coupled with statements on Twitter, investors suffered losses with a drop in values of up to 22%.
Daniel admits that several other factors move cryptocurrency prices, but emphasizes that the billionaire's attitudes affect a huge number of traders with little knowledge about this modality without worrying about the consequences.
"Elon is an intelligent man, he knows what he's doing and he knows the influence he has in the cryptocurrency sphere, but he's using it to manipulate the market," said the investor and creator of StopElon, who also claims to have other plans of the same nature underway, but gave no further details.
Bitcoin and Dogecoin! New statements from Elon Musk bring down cryptocurrency prices
Elon Musk, CEO of Tesla, is a big fan of the cryptocurrency market, offering cryptocurrency as a payment option for his company's cars. However, at the same time, the executive shows constant concern for the environment.
For this reason, the owner of the world's most valuable automaker has declared that he will suspend the use of bitcoin as a form of payment in his company, since cryptomining has been representing a rapid growth in the use of fossil fuels, which are harmful to the environment.
The exacerbated increase in this non-renewable energy source is given due to the use of high-powered supercomputers for cryptomining, which consist of solving complex calculations of higher energy demand.
The statements of the executive, given on his official Twitter account, were enough for the value of bitcoin to face a sharp drop of 14% on its own value, trading just below $49,000. For comparison, the digital currency usually holds steady above $56,500.
The price of dogecoin has also been affected - a sharp drop of 13% can be seen in the values since the executive's speech last Wednesday (12). The cryptocurrency was created from a meme and was worth only $0.05 at the beginning of the year. Last week it reached $0.74 and dropped back to $0.39 after the tweet.
"Cryptocurrency is a good idea on different levels and we believe it has a promising future, but we can't let it come at the expense of the environment," Musk said. "We are looking for other cryptocurrencies that use less than 1 percent of the energy expended by bitcoin."
Binance, the world's largest brokerage, reacted to Musk's statements and began offering dogecoin in light of bitcoin's devaluation in more massive announcements. Their native cryptocurrency, Binance Coin, was also affected by the Tesla and SpaceX CEO's remarks, leading to a 12% drop in its value.
Research proves that the use of electric power, if not converted to means of access in renewable sources, can make the concept of a virtual currency more sustainable and promising. For now, Elon Musk has not specified whether he will abandon bitcoin as a form of payment permanently.
