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 regarding a digital currency can radically change the evolution of this asset. For those who follow the crypto market closely, they know that the billionaire is the top backer of the Dogecoin (DOGE) meme coin. If it withdraws its support for the cryptocurrency, DOGE would crash just as fast as its price has soared.
DOGE, which features the image of the dog Shiba Inu as its logo and namesake, is the eighth-largest digital currency by market value, well ahead of cryptocurrencies linked to decentralized finance (DeFi) projects seen as the future of financial services.
Last July, Musk said he would personally continue to buy dogecoins despite the struggles of the crypto market which has lost more than $2 trillion since its all-time high of $3 trillion set a year ago. . At the time, Tesla had sold 75% of its bitcoins but the billionaire had declared that he had no intention of selling DOGE.
Bitcoin, Ether and DOGE
With the cryptocurrency industry reeling from the FTX scandal, Musk just picked out the three digital currencies he thinks have a future.
FTX, the cryptocurrency exchange, was valued at $32 billion in February, but had to file for Chapter 11 bankruptcy on November 11 because it ran out of money. It turns out that FTX and its former CEO Sam Bankman-Fried, who had saved many crypto companies this summer by bailing them out, used their clients’ money. They also hid that they were in poor financial health.
It is uncertain whether FTX investors and clients will ever get their money back.
The other problem is that FTX and Bankman-Fried are linked to more than twenty crypto projects and companies. Therefore, their debacle poses a huge danger to the entire crypto industry. Some experts compare FTX to the bank Lehman Brothers whose bankruptcy caused the financial crisis of 2008.
It was in this context that Musk was asked about the future of cryptocurrencies during a Twitter space on November 1. 13.
The New Twitter (TWTR) – Get a free report owner and CEO of Tesla (TSLA) – Get a free report told listeners that the FTX debacle was a signal that they should keep their digital currencies in cold wallets and not on exchanges.
“I would reiterate that if you have crypto, you should have it in a directly accessible cold wallet. Not on an exchange,” the serial entrepreneur said. “That would be wise.”
Although he has been highly critical of Bankman-Fried and FTX, Musk remains confident in the crypto industry.
“I think there’s probably a future for Bitcoin, Ethereum, and DOGE. I can’t really speak to the others. But if you have any of those three in a cold, off-exchange wallet, I think my guess does it work well,” Musk said.
The billionaire also took on Bankman-Fried, calling it “bullshit.”
“To be honest, I had never heard of him,” Musk told listeners. “But then I had a ton of people telling me that he had, you know, huge amounts of money that he wanted to put into the Twitter deal. And I talked to him for about half an hour. And I know my bullshit meter was redlined. It was like, this guy is bullshit – that was my impression.”
He continued: “Then I was like, man, everyone, including major investments – everyone was talking about him like he walked on water and had a million dollars. And that [was] not my impression … this guy is right – there is something wrong, and he has no capital, and he will not get out of it. That was my prediction.”