American entrepreneur Elon Musk sparked a brief rally in the memecoin market after sharing a whimsical post on his social media platform, X.
On Monday, Musk tweeted a message stating that Floki, his pet Shiba Inu, was “back on the job” as CEO of X. The tweet featured an AI-generated video of his dog at a desk, wearing a tie and glasses, exclaiming, “Numbers, numbers, numbers, numbers? Is this working? Yay.”
According to CoinGecko, the price of Floki (FLOKI) memecoin surged from a low of $0.00006572 to a high of $0.00008469 after Musk’s tweet on Monday, marking a 28.8% increase. As of this writing, the asset had adjusted to $0.00007998.
This increase illustrates Musk’s ongoing influence over speculative crypto assets, particularly memecoins, which are largely driven by hype.
Musk’s History in the Memecoin Sector
This isn’t the first time Musk’s name has been associated with price surges in the memecoin arena, with Dogecoin (DOGE) being the most notable example.
Over the years, Musk’s tweets, logo changes, and lighthearted comments have resulted in DOGE price spikes.
A class-action lawsuit filed in 2022 accused Musk of manipulating DOGE prices via media appearances and social media posts.
The plaintiffs dropped the lawsuit on November 14, 2024.
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Memecoin Sector Weathers Recent Market Crashes
Memecoins are among the crypto sectors affected by recent widespread market crashes on October 10 and Friday.
Data from CoinMarketCap indicated that on October 11, the memecoin market’s valuation plummeted nearly 40%, dropping from $72 billion to $44 billion during a crypto market crash.
This decline returned the memecoin sector to levels last seen in July, wiping out gains from the past three months.
While memecoins exhibited signs of recovery post-crash, another drop occurred on Friday, with memecoin assets falling between 9% and 11% throughout the day.
This decline coincided with a prevailing “fear” sentiment in the markets, resulting in approximately $230 billion in value lost in a single day.
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