The CEO of SpaceX and Tesla made the claim in a Twitter thread about dogecoin. Mr Musk tweeted: “If major dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue.
“I will literally pay actual $ if they just void their accounts.”
Then one follower of Mr Musk tweeted an idea: “Develop a new ElonCoin.
“Offer them to the existing non-major dogecoin holders to void their wallet.
“You wouldn’t need to pay dollars to make those majors dogecoin holders richer than they already are and allocate your time and support to make the ElonCoin the currency of the Earth.”
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It is worth much less and has long traded for less than one cent.
It was created in 2013 and based on a then-popular internet meme of a Shiba Inu dog.
Mr Musk needs to be careful about issuing statements that could manipulate market prices.
As CEO of a traded company TESLA, his views about the company are regulated in how they provide forward-looking statements.
This is to ensure investors have equal access to news that can move share prices significantly.
But, his comments about cryptocurrencies may well fall outside the current rules against market manipulation.
Cryptocurrencies are not regulated in the same way as normal company shares.
So, Mr Musk’s tweets about dogecoin are unlikely to be a violation of any law or regulation, regardless of whether he owns the cryptocurrency or not.