Elon’s ‘DOGE-1 To The Moon’ As An Escape From Regulatory Penalties.
SpaceX CEO could face charges of market manipulation upon successful regulation of crypto.
Less than 24 hours after Elon Musk hosted the Saturday Night Live on NBC, SpaceX confirmed a deal with the Geometric Energy Corporation (GEC) that was fully funded with an undisclosed amount in Dogecoin.
The deal was for Elon’s SpaceX to help launch a 40-kg cube satellite on the moon by the first quarter of 2022, according to CNBC.
Although this mission could be named in one of a trillion ways, the “Imperator of Mars” — as Elon calls himself on his Twitter bio — dubbed it DOGE-1 for some uncanny reasons.
One of the reasons he chose the name was to shield himself from possible regulatory penalties in the future.
“Regulatory penalties for what?” You may ask.
What did Elon do wrong?
On April 15th, Elon published a tweet that most of his 53.6 million followers construed as financial advice.
This tweet significantly influenced the price of Dogecoin. So much so that the meme-coin reached a record high of $0.45 the next day. There have been several subtle inputs to further his influence on the Doge Community, most of which were effective.
Barely two weeks before the 18th episode of this year’s SNL, he called himself “The Dogefather”.
And only two days before the show, he took the edge off his advocacy for Dogecoin, saying that people should not “take too much risk on crypto.”
It’s hard to tell whether Elon is offering financial advice, advocating the joke-turn-real irony of Dogecoin, or manipulating the market.
After his ‘risk-taking’ advice and obviously ignoring the idea of promoting his beloved meme-coin on live TV, crypto markets witnessed a freefall in Doge price.
Millions had entered the market with optimism. Unfortunately, after the terror, many exited at a loss.
Again, whether he’s manipulating the market or simply living his life, no one can concretely say.
However, with his influence, financial regulators may find it a worthy fight to accuse him of market manipulation. Of course, that’s if the pursuit for crypto regulation turns out successful.
So, how’s the DOGE-1 mission an escape strategy?
For years, XRP has been considered a cryptocurrency. But after the SEC sued Ripple Labs Inc. for illegally issuing securities, the payment solutions company insisted that the XRP is a commodity.
As the struggles to regulate virtual currencies intensify, most acclaimed cryptocurrencies could be classified as commodities.
Of course, this begs the question of whether Dogecoin, being decentralized, is a security or commodity. Its eventual classification rests on the shoulders of time.
Doge, being a publicly-traded asset, however, is bounded by standard market regulations of which manipulation is regarded as malpractice.
And, to be pretty logical, Elon Musk did not promote ‘Dogecoin’.
In his genius, right underneath our tweeting thumbs, Elon did only mention ‘Doge’, a hypothetical name for his company’s next big mission.
Also, his “Doge to the moon” tweet can be excused as a forward-looking statement of his space exploration ambitions. A statement that has now come to fruition.
Would an ambitious man be penalized for making a forward-looking statement? Of course not.
He had a dream that someday Doge would fly to the moon. DOGE-1, in this regard.
Should an Asperger’s suffering celebrity be prosecuted for dreaming out loud? I bet not.
If Elon saves his head from the SEC’s axe, what happens to other celebrities promoting the Dogecoin?
How about Snoop Dogg publicly calling himself “Snoop Doge” on Twitter?
It’s hard to claim that anyone really used their public influence to promote the meme-coin. Not even Mark Cuban who simply announced his company’s acceptance of Dogecoin for payments.
So, what now?
We’ll all walk home, happy or dented? Dented for sure, with no one responsible but ourselves.
Therefore, you’re advised by Lex Fridman to: