Just last week, the news broke it Tesla had bought $ 1.5 billion dollars in Bitcoin to ‘maximize cash returns’ and somewhat surprisingly raise eyebrows. As reported by Market InsiderEconomist Nouriel Roubini accuses Elon Musk of market manipulation and states that the SEC (US Securities and Exchange Commission) should investigate.
The basis for Roubini’s accusations comes from Elon Musk’s tweets. Roubini accuses Elon of using his Twitter platform to pump up the price.
“For someone like Elon Musk who knows he has the market power to manipulate, first take an individual position in Bitcoin, pump up the price and then say that Tesla has invested.” Roubini said in an interview with CoinDesk.
“And Tesla is not making any money yet, it is also irresponsible and it is market manipulation. The SEC should look at people who have a market influence and who manipulate the price of assets. It is also criminal behavior” – Roubini in an interview with CoinDesk .
As a comment to @ Tesla’s $ 1.5 billion. Bitcoin purchase on #CDTV First Mover this morning, @Nouriel said it is “criminal behavior” for Elon Musk to take an individual stance on bitcoin to pump up the price before announcing Tesla’s investment. “Talk about a criminal business.” Pic.twitter.com/aSHPX5ayHMFebruary 10, 2021
Of course, it is important to note that not all details are available at this time. By the time the report landed, Bitcoin had not yet risen to full-time height – before Elon Musk began voting positively for Bitcoin and other Cryptocoins on Twitter.
Frodo was the underdog. Everyone thought he would fail, even most of all. pic.twitter.com/zGxJFDzzrMFebruary 11, 2021
Paired with rumors that Tesla is already selling to the new record highs, many individuals speculate that this was a step to roll in a lot of cash and help Tesla get off to a good start in 2021. There are also rumors that Elon Musk has deleted his Bitcoin tweets, but we can not confirm these.
Either way, it’s unclear what’s really going on – that’s why economists are demanding that the SEC investigate the transaction.
Another crypto bubble?
Whatever really happened around this transaction, it looks like we’ve found ourselves in another Crypto high. Mining, especially Ethereum is at the highest level due to lavish profitability, which in the meantime is increase the price of graphics cards.
At the end of the day, it is players and individuals who buy crypto at these heights who lose.