The volatility of the crypto space is compared to none in the financial market. The rise and fall of the value of some tokens within a small period of time is actually what makes crypto-trading a very risky business. It's fascinating to see a coin increase to 600% of it's original value and before you could know it, it will come crashing back down the way it came.
Little wonder it was said " No risk, no gain right? "...Yes!.. That's what it is. The future belongs to those who take the risks today.
But one profound fact about this volatility is that it is controlled by the elite, the rich and the hedge fund institutions. They use their financial power to pump a certain coin after buying the dip . Some even go to the extent of hyping a certain token to infuse FOMO only for investors to rush in and buy with panic. The next thing you would see would be a dump by these institutions which would in turn crash the price of the token
This has been a very effective technique of the elite. This was also the case of the recent Wallstreet, GameStop happenings where some hedge fund institutions were involved in some pump and dump strategy. They run the market like it's a puppet show with them the puppeteer.
But there's a recent puppeteer in town although not announced but by the look of things,he seems like one of them. He is no other than Elon Musk (The world's richest man).
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Apart from his Tech business,he has been recently interested in cryptocurrency and I think he's in it for no other reason than the gains.
Given his influence and financial power, he is able to singlehandedly pump any token no matter the price value of that coin. A good example is seen on his influence on the Dogecoin.
The Dogecoin is simply a token which emanated from the hard fork of Litecoin in December 2013. It was created by an American,Billy Markus and an Australian, Jackson Palmer.
It's an open-source crypto which was mainly used as a tipping token to reward content writers on social media platforms like, Twitter, Reddit and Discord.
Before now , it was regarded as a shit coin (at least by me) because it was so valueless. It had no use case and relevance in the crypto space. But it took the crypto puppeteer, Elon Musk nothing but just with a simple tweet from his Twitter page on the 4th of February 2021 to pump this coin to where it is today.
The tweet read thus;
“Dogecoin is the people’s crypto,”
By the next two days ,the token had risen with a whooping 66% increase and over . Investors rushed in for the fear of missing out (FOMO). This is really the second time he had done this on Dogecoin. The last time,he just had to effortlessly write Doge on his Twitter account.
At the moment of writing this,Dogecoin is comfortably sitting at 0.079 dollars with an 18% increase within the last 6 hours. Since that incident, the Dogecoin has been listed on up to 5 top crypto exchanges like Huobi Global,Yobit,BitAsset and the almighty Binance.
But then,Elon Musk is rumoured to have about 30% of Dogecoin 's circulating supply if not the total supply. 50% of this supply also is owned by 20 individuals. This leaves the lower investors with 20% to scramble. Which leaves us with an important question;
What if these top guys decide to dump on the price?
I guess we already know what will happen
But actually,as a matter of fact, Dogecoin is not the only crypto asset Elon Musk had exercised this influence. He did the same on Bitcoin when it was at the verge of crashing down to $18k from $34K. This was after YouTube predictors had signalled an impending crash of the coin.
He had to do this simply by stating in an interview that Bitcoin was a good coin. This simple statement sparked an upsurge of the coin from that $34K up to $38K. This took everyone by surprise as many investors were already leaving the trade in anticipation of a looming bear market.
I guess this is the fascinating thing about fundamental analysis (FA). It takes you unawares and makes you lose money (Confer the case of XRP and the lawsuit)
His recent influence in the crypto market can actually not be neglected. This is only easy because he's the world's richest man and the last time I checked,money moves everything around in the financial market. The ones with the money dictate the flow of the market.
Just few days ago, Elon Musk pumped Bitcoin through his Tech company , Tesla by buying Bitcoin asset that's worth $1.5 Billion dollars. The company also hinted that it will soon start accepting Bitcoin as a mode of payment . These two news shot Bitcoin to a whopping All Time High (ATH) of $46K from $36K. This is only an action befitting of a puppeteer
I bet you that very soon ,crypto companies would be meeting him to mention their coin on his Twitter page so as to stimulate a rise in price value even if it means to pay millions of dollars for that. He now acts as the new crypto signal giver who gives signals on coins and also like a new exchange which lists coin and by so doing cause a rise in price value.
But I ask this important question ;
" How long will this puppet show last?"
Have a nice day!✌️🤗
Michaelo Is Out
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