By Hugo Fonzi
Staff Writer
Elon Musk, the CEO of SpaceX, has a Twitter with over 46 million followers. Recently, Mr. Musk has been tweeting about companies and Dogecoin, causing stocks and the price of Dogecoin to rise.
Elon Musk tweeted, “use Signal”, and many people bought shares afterward in a components producer called Signal Advance, causing the stocks to rise 1,100%. His tweets about stocks aren’t only recent. In 2018 he tweeted, “Tesla stock price is too high imo”, and made shares go down 10% immediately.
Mr. Musk’s tweets also seem to affect cryptocurrencies. For example, recently he tweeted about Doge, and the cryptocurrency DogeCoin rose from about four cents to about six cents, which is the highest it has ever been.
“I kinda love Etsy,” Mr. Musk tweeted. Etsy stocks then went up 9%, according to CNBC.
He also tweeted just nine hours before this “Gamestonk!!”, and linked a Reddit board, which may have helped move GME (Gamestop stocks) value to above $10 billion. Robinhood stopped users from buying GME and AMC, and some other stocks.
The day Robinhood did this, the GME stock lowered from about $347 to about $193. Mr. Musk then interviewed Vladimir Tenev, Co-CEO of Robinhood with Baiju Bhatt about this.
From this interview, Mr. Musk found out that no one made Robinhood limit the stocks. And that the GME stock rise caused a deposit requirement of $3 billion from the National Securities Clearing Corporation. “There was a rumor that Citadel or other market makers kind of pressured us into doing this,” Mr. Tenev said.
Some people find Mr. Musk’s tweets are odd, “but Elon Musk acting as an ultimate influencer and driving demand in a regulated securities market seems odd,” as CNBC reported Hussein Kanji, the venture capital investo
Mr. Musk can also be called an influencer of the public market, similar to beauty influencers, as Steven Bartlett, a tech investor who founded The Social Chain, was reported saying by CNBC. They continue, “Musk has become the Zoella of public markets and there’s no way around it for the SEC [Securities and Exchange Commission].”
Elon Musk tweets are affecting stocks, one stock even went up 1,100%. Mr. Musk’s tweet can also raise a cryptocurrency to the highest it’s ever been. He could be called an influencer of the public market.
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