“Mission to moon” – another marketing gimmick for Dogecoin?

Karthik Subramanian

SpaceX has announced a lunar mission in which all the transactional payments would be handled using Elon’s favorite cryptocurrency, Dogecoin.

Over the last few months, Elon Musk has been trying to push hard on Dogecoin by publicly projecting that he loves cryptocurrency and that he fully backs it. Why he would choose Dogecoin, a relatively unknown coin at that time and a crypto that still has not found any mainstream usage, is anybody’s guess.

His strong backing of Doge led to its price becoming 10X over the last couple of months and while it has helped certain gold diggers in becoming rich, it has also led to agony for a lot of traders with his high volatility during the same period.

The low cost of the coin makes it similar to a penny stock and this has made it easy for the price to be manipulated. And when one of the richest persons in the world sets his eye, it becomes an open playground for all but which is skewed to those who have a lot of money. In other words, it isn’t a level playing field anymore.

For all those regulators out there who keep pitching for setting up safe trading practices and platforms, it should come as a big blow that such kind of price manipulation happens but they still aren’t able to reign in such practices.

Over the last week itself, we have seen Dogecoin rising in price by close to 100% while it has fallen by 40% over the last couple of days. The price had risen in the hope of some positive support from Elon during his TV speech but the lack of it has led many to abandon the crypto and rush to the exits which have led to huge price volatility over the last few days. And to shore up the price again, the announcement of this lunar mission comes along.

The unabashed marketing of the crypto and its price volatility continues to pull in more and more traders who trade it in the hope of making a quick buck. This is why the regulators do want to regulate crypto in the long run so that such practices can be stopped and some sense of control can be returned to the industry.

If the crypto regulations are delayed, then it could lead to more and more inexperienced investors and traders being pulled into these crypto schemes and are likely to lose a lot of their hard-earned money and when that happens, it doesn’t help the investors/traders nor does it help the crypto industry as well as it desperately tries to seek acceptance and mainstream adoption.

It is important for the regulators and for the crypto community, as a whole, to step in and regulate the industry and create a level playing field for all and this would improve investor participation in the crypto industry as well.

Recently, we have seen the SEC Chief Gensler pitching for regulation of crypto exchanges and considering all these in the light of the dispute surrounding Ripple, it increasingly becomes clear that more regulation is the need of the hour for the industry and this would help to build more confidence into larger investors to start considering crypto as an alternate means of investment.

Read this next

Retail FX

Texas Slaps Forex Scam with Cease and Desist Order

The Texas State Securities Board (TSSB) is following through on its promise to crack down on online trading fraud.

Industry News

JPMorgan Chase to open its UK neobank next week

JPMorgan Chase, the biggest US bank by total assets, will next week launch its City’s digital-only bank, which offers a range of savings and loan products under its ‘Chase’ brand in the UK.

Retail FX

TIOMarkets UK reports $78,461 in 2020 revenues

TIOmarkets’ FCA-regulated entity reported its financial results for the year ending December 31, 2020. The company posted a revenue figure that was nine times the amount it reported in the fiscal year of 2019.

Technology

Equiduct deploys big xyt’s data analytics for equity market structure

“Banks, asset managers, exchanges and market participants across the globe consistently rely on big xyt as an independent reference for equity market structure”.

Retail FX

BDSwiss partners with PayRetailers to address payment landscape in LATAM

PayRetailers’ suite of payment options via single seamless API integration will be available for BDS Markets Ltd. only.

Digital Assets

Coinbase applies for NFA license while awaiting SEC lawsuit

A license from the National Futures Association (NFA) would open the door to cryptocurrency derivatives trading.

Industry News

Euroclear acquires MFEX to enhance offering for fund distributors and fund managers

This transaction brings together two highly complementary businesses.

Industry News

Madoff Victim Fund sends $568 million to 31,000 victims of Ponzi scheme

Bernard L. Madoff used his position as chairman of BLMIS to steal billions from his clients.

Digital Assets

Revolut uses Bitcoin to Pay for its office space

Revolut, the company that is looking to build a financial super app, has used bitcoin to pay for its largest office space in Dallas, Texas to the flexible workspace provider WeWork.

<