And You Kids Do This: How E. Musko’s Twitter Followers Can Increase Property Value Multiple Times | Deal

No need to look for opportunities to talk about E. Muska – almost every week, a billionaire presents something new. If nothing special happens, the founder of Tesla and SpaceX only has to write a message on Twitter: millions of his followers make sure that a short message from the businessman is heard.

The same thing happened this week: all week broadcasting messages about dogecoin cryptocurrency, its value increased by more than 50%. Market watchers and fans of E. Musko soon noticed that the man’s messages were moving the stock market for the first time, and an entry could increase in value even several times. Foreign media have already dubbed this entrepreneurial ability the Elon effect.

From bitcoin to “sarcastic bitcoin”

The capitalization of the cryptocurrency dogecoin loved by E. Muskas reached 7.8 billion on Sunday night. USD, and its daily growth was 27 percent. During the week, its value increased by as much as 109 percent.

The circumstances of the emergence of this less-heard cryptocurrency are quite unusual. It was created in 2013 to poke fun at crypto investors – they wanted to show that they would buy anything with the word “crypt” in the title. The symbol for the currency was the Shiba Inu dog, which became an internet memo the same year, and its name consists of a deliberately distorted English word “dog,” which means dog.

This prank was more successful than the developers could have imagined: enthusiasts started buying in droves dogecoin. Over the years, he has had a number of jumps in value and his buyers in 2014. He even helped raise funds for the Jamaican bobsleigh team so they could go to the Winter Olympics in Sochi.

Although the latter dogecoin The resurgence of the coin’s value began with the widespread boom in the cryptocurrency market, and this year it was further intensified by users of the social network Reddit.

On his profile Saturday, the billionaire even shared a nifty poll asking his followers to vote whether dogecoin it will become the new world currency.

A week earlier, similarly, E.Muskas sparked the growth of the major cryptocurrency bitcoin. On his Twitter account, he changed his resume to #bitcoin, the billionaire increased the value of this cryptocurrency by a fifth in a couple of hours. A few days later, he withdrew the note.

The word becomes flesh: investors no longer care if a company is mentioned

Investors who followed E. Muska’s every word were also curious. When he spoke about the next-gen social platform Clubhouse in one of his Twitter posts in late January, it caused an unintended effect. Clubhouse Media Group’s shares immediately jumped 100 percent on Monday, February 1, and then fell to a modest 83 percent before the stock market closed.

Although Clubhouse is a rapidly growing audio chat platform, there were no other prerequisites for such a powerful augmentation, not even purely technical ones. The Clubhouse, which operates the platform, is not a publicly traded company but a private company, valued at just $ 100 million in May last year. AMERICAN DOLLAR.

Meanwhile, Clubhouse Media Group is a former publicly-owned Chinese-owned healthcare company with a very specific business, operating and renting houses that can accommodate a variety of internet influencers. So the investors didn’t put their money into that company.

By the end of the week, its shares had more than doubled from the peak, but its value was still significantly higher than in mid-January. It is noteworthy that the billionaire did not offer to buy shares or invest in his track record, it was enough to mention the name of the product.

A very similar curiosity took place in early January, when the billionaire advised his followers to use Signal, a message encryption device. They flocked to invest in the small company Signal Advance Inc., whose shares rose as much as 11.708 percent in the three days after the message. As in the first case, it was an unrelated company dealing in medical technology.

However, perhaps the most unusual case was the message from another billionaire published this week, which simply said that “Sandstorm is a work of art.”

E. Muskas was probably referring to the work of the well-known Finnish techno artist Darude “Sandstorm”, which was popular in 2000.

However, investor orders went to Canadian gold mining company Sandstorm Gold, whose shares rose as much as 55 percent before the stock market opened. Although this effect was short-lived, it illustrates quite well the combined chaotic power of E. Musko and Twitter.

E. Musko’s word on the stock market is important even when investing mistakes are difficult to make. Here’s January 26. After the Tesla founder wrote a record that he “loves Etsy, America’s arts and crafts sales platform, in a sense his stock was up almost 10 percent.”

The same thing happened with Polish gaming company CD Projekt RED: After E. Musk announced his new game Cyberpunk 2077, which passengers will be able to play while driving new Tesla cars, the company’s shares jumped about 12 percent.

Not just strangers, the billionaire has downgraded Tesla due to his track record

These unusual episodes can probably only make a businessman smile, especially since he does not suffer from it himself. However, E.Muskas himself has experienced that openness on Twitter can turn the other side around.

In early May of last year, with Tesla shares skyrocketing, the billionaire posted a message on his account saying he thought Tesla prices were too high. Investors soon reacted to this. The share price fell 12 percent on the same day. It is true that this effect did not last long: today the price per share is more than five times higher than in May.

The billionaire faced much bigger problems in 2018. In August, he declared on Twitter that he wanted to trade Tesla shares sold on the stock exchange for $ 420 a piece.

By the end of the same month, the stock had fallen more than 20 percent and the United States Securities and Exchange Commission (SEC) had allocated $ 20 million to the businessman. A fine of USD. He also had to resign as chairman of the Tesla board of directors.