Elon Musk's Recent Crypto Ignorance Results in Diminished Reputation

Elon Musk’s reputation sinks downwards after attacking Bitcoin.

By
John Tunney
on
June 3, 2021
Category:
Blockchain News

Musk Angers the Community

On June 2nd, news broke that Elon Musk’s recent attacks on cryptocurrency in May, specifically Bitcoin, resulted in a substantial rise of negative feedback aimed at the Tesla founder. In a private study conducted by Awario, the positive to negative narrative of tweets about Musk reached an all time low following the crash of the crypto market. 

In January, the ratio of positive to negative tweets about Musk were generally 50-50. During the month of May, the positive to negative tweet ratio fell 25%. This displays more people tweeting negatively about Musk since October 2020, when Awario began tracking the data. Tweets directed toward Musk that were neutral in sentiment remained the largest at 66%, followed by negative tweets at 19.2% and positive tweets at just 14.9%.

Source

The Implications for Musk

The recent spike in negatively aimed at Musk via twitter should not just be written off as the angry twitter mob making their weekly rounds or angry crypto investors who lost big thanks to Musk tanking the crypto market. No, this could cause problems for the Tesla billionaire. 

Ross Gerber, CEO of Gerber Kawasaki said “Elon is wading into an area that's maybe not the best of statements to make because the fact of the matter is bitcoin is the future of digital currencies, it's the root of it” and that “I think it's a very dangerous area for Elon to get in when he's causing people losses like he did the other day and it turns people against him and ultimately Tesla."

Although Musk may not feel the heat right now, he still is an avid believer in Memecoins, as Musk recently posted this tweet showing his appreciation for Dogecoin:


The Confusion

What’s confusing about all of this is Musk’s seemingly erratic behavior. One night he’s on SNL calling Dogecoin a “hussle” then 2 weeks later he’s the coin's biggest fan, trying to build it out. Vitalik Buterin, the Ethereum co-founder, subtly dismantled Musk’s erroneous and “wishful thinking” plan to build out Dogecoin, which can be read about more here

It’s unclear what the plan is for Musk. He believes in the value of crypto, as stated in the infamous Bitcoin tweet, which suspended the crypto payment due to his environmental concerns. Yet in terms of a consistent narrative for Musk on crypto, it appears there is none that can be found. Musk seems to have one foot out the door, one foot in the door, and the community is not pleased about it. 


Concluding Thoughts 

The power of DeFi is tremendous. Elon Musk at some level recognizes the intrinsic benefits crypto currency can bring, and he’s not alone. Many billionaires, hedge funds, and Wall Street executives are starting to tiptoe their way into the crypto space. Musk might mean well, but it would appear that his carelessness and wishful thinking has angered the crypto community. The repercussions against Musk could be massive. As noted by Gerber, some may choose to avoid investing or buying Tesla products due to the chaos that Musk has brought to the crypto market. Hopefully, Musk can bring a more consistent narrative into view and end the instability that has recently followed him.

Tags:
No items found.
John Tunney

John Tunney is an accomplished analyst and crypto enthusiast. The UCLA alum has been actively reporting and blogging for 3 years, and has a passion for all things finance.

Text Link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.