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Elon Musk: the first criticisms arise for his behavior

Is it about market manipulation?

I repeated tweet from Elon Musk they seem to have finally attracted general attention, due to the delicate problems they are posing. Reported in particular by a study of Blockchain Research Lab, who had an easy game in pointing out the wild market movements that followed each of Tesla's CEO's social outbursts.

Elon Musk - Elon Musk: the first criticisms of his behavior arise

Is it about market manipulation?

The question that runs in these hours is very precise: Do Elon Musk's tweets represent market manipulation? A necessary question, in light of what is happening on the stock and financial markets, with particular reference to the matter GameStop. For which a exchange, Robinhood, he practically got into trouble for having carried out a behavior deemed absolutely incorrect by a large number of observers. Essentially preventing its users from trafficking in the stocks that have been attacked by some hedge funds. In particular from Melvin Capital, a hedge fund that had operated short against GameStop. Which was suffering colossal losses due to the pump and dump conceived and implemented by the redditor of WallStreetBets.

Is it time for Elon Musk to move to more appropriate behavior?

If Robinhood ended up in the eye of the storm, even having to shelve the IPO that should have financed its future growth, due to its behavior, why Elon Musk should get away with his behavior which are now equated to the WSB pump and dump?
The question is racing in these hours precisely because of the latest feats of Tesla's CEO. That is the repeated tweets in support of Bitcoin e Dogecoin. Which caused a very strong growth of the two tokens, in particular of the cryptographic icon attributed to Satoshi Nakamoto. BTC, prior to its message of support, was retreating quite decisively.
A tweet which, however, came at a very special moment. That is the one following the$ 1,5 billion investment in BTC by the auto company he founded.

Legal margins are starting to taper

However, Tesla's operation on Bitcoin this time prompted many observers to openly accuse Elon Musk of playing dirty. How did he do Preston Byrne, a partner of Anderson Kill. Who said he would be more cautious now that Tesla has invested heavily in Bitcoin. Precisely because the CEOs of companies which boast substantial holdings in BTC could see their statements interpreted as a real attempt to manipulate the markets.
While Eric Goldman, a professor of law at Santa Clara University, also explained that the tweets, although questionable, for now they leave some room for maneuver. According to him, in fact, the courts assume that users of social media, such as Twitter, do not take the various discussions too seriously. An argument that has been adopted by Donald's lawyers Trump to avoid legal actions to the detriment of their client.
However, it remains to be seen whether this orientation is destined to persist in the immediate future. Especially in the light of the strong attention of the political world and of the supervisory authorities, starting from the SEC, towards schemes such as the pump and dump. Which should advise Musk to be more cautious.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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