Michael Saylor, MicroStrategy’s CEO, has become one of Bitcoin’s biggest supporters and one of the most celebrated figures by investors betting on the world’s largest cryptocurrency. However, to Mr. Whale, A well-known member of the cryptomarket, a billionaire’s goals can be much more obscure than his fans realize.
In an article published on his Medium, Mr. Whale stated that while Saylor is celebrated by many Bitcoin maximalists as a visionary, his agenda “become clear” by looking at the past “corrupt and fraudulent” from the CEO of MicroStrategy.
“While many Bitcoin maximalists see Saylor as a visionary and see the MicroStrategy purchase as an example of ‘massive institutional demand’, a much more sinister agenda becomes very clear as we delve into Michael Saylor’s corrupt, fraudulent and drug-ridden past. .”
Michael Saylor “Cheater”
The article highlights different points from Saylor’s past that, according to the author, show that Bitcoin investors cannot trust Michael Saylor as much.
One of the highlighted facts is that Saylor was the “Biggest Loser” of the .Com Bubble. Mr. Whale said that after seeing Saylor get involved with Bitcoin, he decided to research more about the Microstrategy CEO’s past and discovered his shortcomings as an investor.
Whale reports that he found an article in which, using data from Thompson Financial and Bloomberg, Fortune Magazine made a list of who was hit hardest by the tech bubble.
At the top of the rank was none other than Michael Saylor, who lost $13.5 billion, which had been the biggest financial loss in history (at that time).
“His investment failures came from years of lax accounting practices, fraud and terrible leadership. It’s obvious that the valuation of their companies is purely based on their ability to attract hype by engaging with popular trends, what it was like to be at the center of the .Com Bubble and now what it is like with the Bitcoin bubble.”
“Michael Saylor was accused of fraud by the SEC”
Mr. Whale also said he found information about allegations of fraud against Michael Saylor’s companies.
According to the article, the internet bubble helped lift Saylor’s shares from $30 to more than $3,000 in just a few years, but that all reversed into a drop of more than 99.9%. Whale also claims that the company was forced to restore its accounting data, which had all profit information erased.
“On December 14, 2000, the SEC opened an investigation against Michael Saylor, accusing him of being a fraud.”
The article also claims that the investigation was settled with an $8.3 million settlement split between the shareholders of Saylor’s shares and a $350,000 fine given by the SEC.
“The SEC also revealed that instead of making a profit (as he claimed) he was actually losing money. MicroStrategy was basically being supported by new investors that they got through hype (…) It seems to me a lot like a Ponzi scheme.”
The Medium article also claims that Michael Saylor is not a Bitcoin supporter and that he actually dislikes cryptocurrency, claiming in the past that digital currencies have no intrinsic value and are just gambling assets.
“His latest tweets show that he has always criticized Bitcoin and even claimed that the currency would suffer the same fate as online betting.”
Whale accuses Saylor of using Bitcoin Hype to attract new investors to Bitcoin and the shares of its companies, which he allows insiders to sell at overpriced prices.
At one point he claims that Saylor is smart and will give an exit scam in the future. Whale then claims that “If Saylor sold, he would be questioned by the SEC and would suffer a lot of criticism (Remember what happened when Musk sold his Bitcoins?)”
The commentator goes on to say that Saylor is trying to deceive investors so that he and his company can sell high and win while hurting the market.
“This is a typical move that institutions love to make. They encourage small retailers to buy high while they sell. They need exit liquidity to be able to complete their orders. You should always be careful with that.”
Market manipulation by billionaires
For some, Michael Saylor is a big supporter of Bitcoin, for others, however, he is a billionaire who is accumulating the digital currency and can manipulate the entire market through his influence.
The subject was already discussed by Satoshi Nakamoto in 2009, when the first digital currency enthusiasts considered the possibility of manipulating and attacking Bitcoin in this way.
“[bilionários] can buy [bitcoin] while they are cheap, artificially increase their value, causing people to invest, and then crash the market, causing many people to lose money.”
“I think the biggest problem, as others have mentioned, is buying/selling dark interests to create speculative bubbles and then dips. They can orchestrate these events at critical times (during the release of a release or media event) to discourage new users.”
Satoshi Nakamoto responded that the event could actually happen, as seen in posts by billionaires like Elon Musk, who manipulate the market whenever they can, but their power to influence is limited.
“What the OP described is called ‘trapping the market’. When someone tries to buy the entire world’s supply of a scarce asset, the more he buys, the higher the price rises. At some point, it becomes too expensive for them to buy more.“ – Satoshi Nakamoto said.
Beautiful day to remember, Satoshi.
Which side are you on? 🧐. pic.twitter.com/tjIEwhQHdH
— Lorena Almada (@lorenaalmadag) September 13, 2021
“Michael Saylor is a former crack addict
At one point in his article Mr. Whale claims that Michael Saylor is a former crack cocaine addict. He even reports the lawsuit in which Saylor was indicted for drug possession.
He put prints of the process to substantiate his argument.
However, readers pointed out that both the process link and the print have no connection to a case linked to the real Michael Saylor, but rather to someone with the same name.
“The lawsuit you linked to Michael Saylor is about someone who is currently in prison and is appealing for a sentence reduction. This is not the right Michael Saylor (…) Both the screenshot and the link you provided indicate that you are talking about the wrong person, both from Indiana, Saylor does not live and has never lived in Indiana…”
Doing the research is very important before you invest in any cryptocurrency or decide to follow any influencers having to do with the financial industry.
But it also means that you should research well in relation to critics and what is said to be negative in relation to different aspects.