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Elon Musk is a crypto evangelist.
The billionaire is one of the most influential voices in the cryptocurrency market.
An announcement or comment from him about a digital currency can fundamentally change the evolution of this asset. For those who follow the cryptocurrency market closely, they know that the billionaire is the main supporter of the Dogecoin (DOGE) meme coin. If he withdraws his support for the cryptocurrency, DOGE will collapse as quickly as its price is rising.
DOGE, which features the Shiba Inu dog as its logo and bears its name, is the eighth digital currency by market capitalization, far ahead of cryptocurrencies associated with Decentralized Finance (DeFi) projects that are the future of financial services.
Last July, Musk said he would personally continue to buy Dogecoins despite the suffering of the crypto market, which has lost more than $2 trillion since an all-time high of $3 trillion a year ago. At the time, Tesla sold 75% of its bitcoin, but the billionaire said he had no intention of selling DOGE.
Bitcoin, Ether and DOGE
While the cryptocurrency industry has been rocked by the FTX scandal, Musk has just picked the three cryptocurrencies he believes have a future.
Crypto exchange FTX was worth $32 billion in February but had to file for Chapter 11 bankruptcy on November 11 because it ran out of cash. It turns out that FTX and its ex-CEO Sam Bankman-Fried, who bailed out several crypto companies in the summer by bailing them out, used their clients’ money. They also hid that they are in poor financial condition.
It is uncertain whether FTX investors and clients will ever get their money back.
The other problem is that FTX et Bankman-Fried is associated with more than two dozen crypto projects and companies. Therefore, defeating them poses a huge risk to the entire cryptocurrency industry. Some experts compare FTX to Lehman Brothers, whose collapse triggered the 2008 financial crisis.
In this context, Musk was asked about the future of cryptocurrency during a Twitter space on November 13.
New Twitter (TWTR) – Get a free report Owner and CEO of Tesla (TSLA) – Get a free report He told listeners that the FTX debacle was a signal that their cryptocurrency should be kept in cold wallets and not on exchanges.
“I would emphasize that if you have cryptocurrencies, you should put them in a cold wallet that can be directly accessed. Not on an exchange,” said the serial entrepreneur. “It would be wise.”
While he was highly critical of Bankman-Fried and FTX, Musk remains confident in the cryptocurrency industry.
“I think there is likely to be a future for bitcoin, ethereum, and DOGE. I can’t really talk to others. But if you have one of these three in the cold wallet, and out of the exchange, I think I think,” Musk said.
“Bullsh-t”
He also chased after billionaire Bankman-Fried, whom he called “Bullsh-t”.
“Honestly, I’ve never heard of it before,” Musk told listeners. “But then a lot of people told me he got, you know, huge sums of money he wanted to invest in his Twitter deal. And I talked to him for about half an hour. And I know my bullshit scale was red. It was like, this guy is bullshit. – That was my impression.”
And then I was like man, everybody including the big investments – everybody was talking about him like he’s walking on water and he’s got a zillion dollars. And that [was] Not my impression … that the guy is just – something is wrong, he has no capital, he will not come. That was my expectation.”
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