The Rise and Fall of Stocks and Social Statements
Kaihan Krippendorff provides insight into the rising valuations of tech stocks and attributed the rise of cryptocurrencies, and NFTs (non-fungible tokens).
It’s been a while since Saturday Night Live was a staple of Monday morning conversation, but this week as our team gathered around the Zoom screen to join our check-in call, the sketch comedy show was top of mind. I can’t imagine many missed it, or at least the news surrounding it, but last weekend’s episode featured special guest Elon Musk.
In his opening monologue, Musk commendably revealed for the first time his Asperger’s diagnosis, while poking fun at his unbelievable track record of innovation: “I reinvented electric cars and I’m sending people to Mars on a rocket ship. Did you think I was also going to be a chill, normal dude?” Musk joked about Dogecoin, a cryptocurrency which, along with NFTs (non-fungible tokens) and other blockchain-based value exchange systems, has taken over headlines recently.
Musk’s statements during the show around Dogecoin’s validity sent it into a downward spiral, while his follow-up statements that SpaceX would accept it as legitimate payment for a mission to the moon sent the cryptocurrency skyrocketing. At the same, his decision to halt acceptance of bitcoin for Tesla payments based on environmental factors caused the digital tokens to plummet.
These volatile reactions to Musk’s statements, brought about primarily by posts on Twitter and reactions in social networks, echo GameStop’s stock surge earlier this year. They demonstrate the power of communities, virtual and in-person, to self-organize around a common cause, whether it’s a well-loved retail videogame chain or a parody cryptocurrency that began as a meme.
All jokes aside, those who have been following the news this year around the valuation of cryptocurrencies and NFTs combined with blockchain technologies will recognize broader implications for how we conduct business and exchange goods in the future of our society.
Key points include:
- Volatile reactions to stock trading
- Power from coordination of resources or services
- The convergence of two strategic trends
Read the full article, Elon Musk, Dogecoin, And NFTs: Coordinating Without An Official Coordinator, on Kaihan.net.