Tesla CEO and world’s richest person Elon Musk popular meme-focused cryptocurrency to Dogecoin (DOGE) warned against.
Responding to the tweets posted by Mishaboar on Twitter, Musk emphasized that this was a good post and stated that he actually confirmed the same warnings.
Leverage Alert for DOGE
The posts published by Mishaboar were for those who made leveraged transactions on Dogecoin.
Mishaboar emphasized that DOGE investors are trading heavily leveraged and as a result there is liquidity.
For this reason, the investor, who actually called to warn people about how risky leveraged transactions are, compared it exactly to approaching the fire with gasoline.
Mishaboar emphasized that leveraged transactions are even confused with gambling and underlined that the situation is much more than that.
The prominent member of the Dogecoin community emphasized that only successful and skilled traders should make leveraged transactions.
Still, the largely unregulated state of the cryptocurrency industry makes it easy to manipulate.
This forms the basis of the call to stay away from leverage, no matter how experienced the investor is.
Recently, Binance and FTX cryptocurrency exchanges had to make a serious correction in the leverage rates they offered to users and reduced the amount of leverage.
The sharp decline in the DOGE price after seeing the peak also indicates how dangerous leveraged transactions can be.
Musk also revealed that he approved them with his comment.