On Tuesday, February 16, 2021, Elon Musk was discussing the idea of launching a crypto coin for the Mars economy. However, unbeknownst to him, there was already an altcoin called Marscoin. Within hours of sending out the tweet, the price of that crypto coin went soaring through the roof.
How It Went Down
Musk was responding to a tweet by CZ, the Binance CEO. CZ had asked Musk about the possibility of launching a crypto coin for the Mars economy. In response, Musk said that there would be a MarsCoin. Musk first began discussing the idea of a Marscoin in December 2020. His idea is to launch a crypto coin that will power the economy of the human settlement he plans to establish on Mars.
Marscoin Price Rises Then Tanks
Musk probably never knew that there was already a coin called Marscoin when he made the tweet. As soon as he issued the tweet, the price of Marscoin (MARS) rose by 1800%. At its peak, the crypto coin was trading at around $2.5. Before Musk made the tweet, the coin had been trading at around $0.09.
Following the massive surge, Marscoin tanked ~ 70% over the last 24 hours. During the last 7 days, the altcoin traded at a low of $0.07 and an all-time high of $3.33. Unlike Dogecoin, it seems like the Marscoin hype offered much less substance.
Musk’s Influence In The Crypto Market
Elon Musk has proven to be quite an influential figure in the crypto market. In the past few months, his tweets about Dogecoin (DOGE) have sent the price of the coin through the roof. It can also be argued that his tweets regarding Bitcoin have played a major role in helping pump up the price of the leading coin by market cap. Currently, the price of BTC is north of $51,000, a price that it has never achieved before.
Elon Musk Signal
In general, Musk’s actions and words have been quite influential due to the power of social media. For instance, he recently tweeted about the signal app as an alternative to WhatsApp. A penny stock going by the name of Signal Advance ( SGL ), saw its price skyrocket. The problem here is that SGL has no affiliation with the signal app at all. SGL is a different entity that specializes in carbon and graphite materials…
Elon Musk & Etsy / Gamestop
Musk’s tweet on January 27 also appears to have played a role in fueling the Gamestop stock rally. In another instance, after he tweeted about Etsy, its stock price rose by around 9 percent.
While some experts have warned that the oversized influence Musk has could raise regulatory concerns, regulators have refrained from commenting on the practice. However, what is clear is that Musk’s tweets sway the crypto market. Anyone that plans to trade in the crypto markets should pay attention to what leading influencers are saying. Besides this, it is always important to do your own research before investing.
Since Musk is a well-known figure in the world of finance, his tweets also have to raise awareness of the crypto market. There is no doubt that several people have bought their first coins in direct correlation to Musk’s tweets about the future of digital assets. In general, Musk’s entry into the crypto market has had a positive impact on mass adoption and increased awareness.
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