Following Elon Musk’s tweet asking his followers if he should sell 10% of his Tesla shares, the crypto Tesla token has plunged 7% in value.
Crypto Tesla token has dropped by 7% ahead of Elon Musk’s planned dump.
Tesla’s crypto coin fell 6.8% after Musk polled his fans on whether he should sell 10% of his stock, according to an analyst on Twitter.
The token in question is built on the blockchain and is based on the company’s stock. It can be traded all year long, 24 hours a day.
Since the stock market closes on Friday, traders keep an eye on crypto token price movements to get a sense of what the price might be when the market reopens.
Following Elon Musk’s post on Sunday, the Tesla cryptocurrency lost over 7% of its value. According to Reuters, the stock did actually plummet more than 7% in pre-market trade on Monday.
The poll in question was a poll in which the CEO of an electric car company asked his followers if he should sell 10% of his company’s stock. The poll ended on Sunday, with 57.9% of his followers saying yes to the move.
Elon Musk says, “I propose selling 10% of my Tesla stock because much has been made recently about unrealized gains being a means of tax avoidance.”
“I will abide by the results of this poll, whichever way it goes,” SpaceX CEO Elon Musk said before the results were in. 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.”
Musk appears to be selling Tesla stock in order to save money for his taxes. Musk had about 170 million Tesla shares on June 30th, and 10% of that was worth more than $20 billion at Friday’s close.
The crypto community has speculated whether the world’s wealthiest man intends to buy more Bitcoin with some of the proceeds from the transaction.
