The crypto Tesla token has dropped 7% in price following Elon Musk’s tweet asking his followers whether he should sell 10% of his shares in the company.
Crypto Tesla Token Drops 7% In Value Ahead Of Elon Musk’s Dump
As pointed out by an analyst on Twitter, the Tesla crypto coin dropped 6.8% after Musk put out a poll asking his followers whether he should dump 10% of his shares or not.
Built on the blockchain, the token in question is based on the company’s stock and can be traded throughout the year, 24 hours a day.
Since the stock market closes on Friday, traders watch out for price movements in the crypto token to get an idea of what the price may look like when the market reopens.
On Sunday, the Tesla token showed a drop of almost 7% following Elon Musk’s tweet. According to Reuters, on Monday, the actual stock indeed saw more than 7% drop in pre-market trading.
The tweet in question was a poll where the electric car company’s CEO asked his followers whether he should sell 10% of his shares in the company.
“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock,” says Elon Musk.
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The poll closed on Sunday itself with 57.9% of his followers replying with a “yes” as to if they support the move or not.
Before the results had come in, the SpaceX CEO said “I will abide by the results of this poll, whichever way it goes.”
The reason behind Musk selling his Tesla stocks seems to be for amassing funds to pay his taxes. He explains “Note, I do not take a cash salary or bonus from anywhere. I only have stock, thus the only way for me to pay taxes personally is to sell stock.”
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On June 30, Musk owned around 170 million Tesla shares, and 10% of that will be worth more than 20 billion at Friday’s close.
The crypto community has been speculating whether the world’s richest man plans to use some of the funds from the sale to buy more Bitcoin.
At the time of writing, Bitcoin’s price floats around $66k, up 6% in the last seven days. Over the past month, the crypto has gained 19% in value.
The below chart shows the trend in the price of the coin over the last five days.
After consolidating for a couple of weeks, Bitcoin has finally shown a solid price move up as the crypto touches $66k again | Source: BTCUSD on TradingView
Featured image from Unsplash.com, chart TradingView.com