As the weeks-long collapse of the cryptocurrency continues, the CEO of Tesla, Elon Musk, tweeted on Sunday and declined claims that he involved in a bitcoin pump-and-dump scheme earlier this year. He also wrote that Tesla would once again invest in the largest cryptocurrency of the world (Bitcoin) once its mining operations start a reasonable amount of clean energy usage.
In response to a Cointelegraph article highlighting remarks in which the Sygnia CEO, Magda Wierzycka, slammed Musk for bitcoin price manipulation, he says it is not true. According to Wierzycka, who made the remarks in a podcast released on Wednesday, the electric car maker company’s CEO announced the Bitcoin investment of Tesla on Twitter, then inflate the bitcoin price by writing about it on social media (Twitter) and then sold at the peak.
When would Tesla resume allowing Bitcoin transactions?
Musk added that Tesla only sold ten percent of its holdings to confirm Bitcoin could settle easily without moving the market. Musk further added by referring to the 1st-quarter Bitcoin sale of Tesla that resulted in profits of $272 million after many tweets touting the cryptocurrency. Furthermore, in another giant Bitcoin pivot, Elon Musk also said his company would restart allowing Bitcoin transactions after the confirmation that miners are using almost fifty percent clean energy with an optimistic future trend.
The Sunday declaration from Musk comes after he and his fellow billionaire Michael Saylor said on Twitter in May that they met with some of the largest Bitcoin miners of the country and would lead an effort to encourage energy usage transparency and speed up sustainability initiatives globally. Moreover, the group’s specific goals yet to announced, and members together control below ten percent of the Bitcoin network’s international computing power, but the effort approximately instantly drew criticism from the industry in an effort to consolidate the cryptocurrency, which purposely designed to decentralize finance.
Wierzycka said that the instability they observed in Bitcoin is an surprising function of what he would call market handling by Elon Musk, and if that happened to a listed company, he would inspect and critically sanctioned by the U.S. Securities and Exchange Commission, possibly referring to the fact that the agency only has regulatory authority over securities – and not currencies.
Tesla Announced to Invest $1.5 Billion in Bitcoin
Moreover, SEC defines market manipulation as the intentional or willful conduct designed to cheat or deceive investors by controlling or artificially affecting the securities’ price. The price of Bitcoin rises in February after Tesla announced to invest $1.5 billion in the largest cryptocurrency of the world, but prices plunged since April when Tesla revealed it sold off part of its stake in a regulatory filing.