Elon Musk’s ‘Pump And Dump’ Comment Is Dangerous For The Crypto Market – Jordan Belfort Avers

Jordan Belfort also known as the Wolf of Wall Street has in the newest spat of events decried against creating dangerous FAD and FUD calling out Elon Musk over comments he made during the B-word Conference.

Speaking to Fox News, the acclaimed writer of The Wolf of Wall Street, now turned into film expressed his apprehension and dissatisfaction over Musk’s statement during the conference where he particularly stated “I might pump, but I don’t pump” visualizing it as irresponsible and dangerous to investors who look up to him when investing in the asset.

“The problem is, he might not be pumping and dumping. People use his endorsement and they pump and dump around  that hype that Elon creates, so he might not be doing it but others use his name” he said

He was skeptical about the hype created around Dogecoin in the second quarter rally where investors, in what they called the doge army, dumped the asset whereas Elon might not have dumped it.

Calculated Risk

The author, who acknowledged having invested in various cryptocurrencies including Bitcoin, Ethereum, and Polygon stated that he was in for the long term and invested on a calculated risk basis, not putting in what he could not afford to lose and more so, not acting upon what others thought.

“I think that people who are trading bitcoin in the short-term…it’s very dangerous, it’s very volatile. Anyone who knows where it’s going next is lying. No one knows where it’s going next. It’s susceptible to things like statements from Elon Musk and things that happen in china” he cautioned.

More Caution

Jordan joins an array of pundits who believe that Elon’s use of his position to influence the movement of cryptocurrencies is irresponsible and dangerous.

In June, Binance CEO, CZ blasted Elon for what he termed as irresponsible tweeting, as the Tesla boss sent out negative comments about Bitcoin that influenced largely investor decisions, causing them a lot of agony after incurring losses. CZ’s response came shortly after Musk’s viral bitcoin meme surfaced causing a market frenzy.

“Greater power with great responsibility, great. Great power with random “humour”, not great, and not funny” he stated.

Other notable figures such a congressman Warren Davidson, Microstrategy’s Michael Saylor, Morgan Creek’s Anthony Pompliano, and Bitcoin’s stock-to-flow creator Plan B have previously slammed Musk over inconsiderate comments which have served to only influence prices to work to his benefit. Elon Musk has previously come under SEC’s radar over deceitful market manipulation charges and was subsequently fined.

Its Upon Investors To Ignore Elon

According to Jossie Welland a senior associate solicitor at the chambers Uk guide, Elon Musk’s tweets, quips, and announcements can be perceived as market manipulation and are offenses carrying a maximum punishment of 7 years and/or an unlimited fine. She is however skeptical whether SEC’s involvement would affect Musk’s behavior, leaving market forces to deal with him, naturally.

“His apparent influence over the crypto space, and the markets in general, hasn’t been fettered since his last fine from the SEC. And it’s unlikely that any subsequent enforcement action if it was to follow, would have any effect on this,” she says.