The public being swayed by the words of people such as Musk is worrisome, said Rahgu Mohan of Lumos Labs.
Crypto veterans and industry professionals reacted angrily to Elon Musk’s recent statements on cryptocurrency. Musk, the CEO of Tesla and SpaceX, has been chastised by a number of specialists in recent weeks, and has even been accused of not knowing enough about cryptos before making statements.
Musk was perceived as a cryptocurrency supporter in February when he stated that Tesla will begin taking bitcoin payments shortly and that the business had invested $1.5 billion in bitcoins.
Tesla, meanwhile, reneged on that commitment this week, citing environmental worries over the usage of fossil fuels to generate the power required for cryptocurrency mining. The corporation has stated that it will not sell its own assets until better environmentally friendly methods are developed.
“Most of the things Musk has said have been proved wrong,” said a senior executive of one of India’s top crypto exchanges. “More importantly, the problem is that he randomly pushes Dogecoin, a cryptocurrency that was meant as a joke and is against the core idea of cryptocurrencies and affects the entire industry,” he said.
“Elon, block times and block sizes cannot be scaled like that. And as long as Doge is based on proof of work, it would be an environmental disaster. New protocols are necessary to scale. The biggest scientific breakthrough since the bitcoin white paper is the Avalanche protocol,” wrote Emin Gün Serir, a computer science professor at Cornell University, replying to a tweet by Musk about Dogecoin.
The CEO described above also mentioned that Musk’s tweets allow whales, or those who own big quantities of cryptocurrency, to profit from the market. “Even while I know what Musk is saying is incorrect, I also know that most individuals who don’t understand the market will sell their stocks. As a result, I (the whale) would dump even more before them in order to purchase it back when the price is low,” he added.
The public being swayed by the words of people such as Musk is “worrisome” as it shows that there’s a “herd mentality” and that decisions don’t come from a fundamental understanding of the space, said Raghu Mohan, co-founder and CEO, Lumos Labs, an innovation management firm specializing in blockchain startups.