This Meme Coin Crashes by 60% After Another Elon Musk Interaction on X: Details

TL;DR

• Elon Musk’s affect has as soon as once more prompted wild fluctuations in meme coin costs, with KEKIUS hovering 4,000% earlier than collapsing 60%.
• The fast value actions and lack of basic worth in lots of meme cash spotlight the significance of cautious analysis and investing solely what you possibly can afford to lose.

Dumping Onerous

The frog-themed meme coin Kekius Maximus (KEKIUS) has been a sizzling matter in the crypto house up to now few days.

The token (whose brand represents a frog wearing historical Roman armor) skilled an almost 4,000% value improve between December 30 and January 1. The pump may be attributed to Elon Musk, who changed his profile image on X with the eponymous meme. 

The spectacular spike allowed savvy merchants to make tens of millions because of coming into the ecosystem on the proper time. Lookonchain just lately revealed the case of 1 business participant who turned a $66 funding in KEKIUS into greater than $3 million in simply 18 days. 

Nevertheless, the coin’s rally was short-lived, with its valuation crashing by 60% up to now 24 hours. At one level, KEKIUS dumped to as little as $0.08, whereas at the moment, it trades at round $0.15 (per CoinGecko’s knowledge). 

Its sudden collapse seems to have been triggered as soon as once more by Tesla’s CEO, who’s now seen on X as himself within the background of the American flag and never as the emblem of the frog-themed token.

Over the previous few years, Musk has influenced the costs of many different meme cash by his tweets, public endorsements, and actions. One of many newest examples consists of his feedback relating to Peanut the Squirrel (PNUT). 

The meme coin is impressed by a pet squirrel named Peanut, which was euthanized to check for rabies after it reportedly bit a DEC employee throughout a seizure operation. Its dying in the beginning of November final yr prompted large controversy, with many individuals describing the transfer as pointless for the reason that animal had lived indoors for years and confirmed no indicators of the illness. 

Musk was among the many critics, labeling the hassle as a “authorities overreach” and provocatively saying that “Donald Trump would save the squirrels.” He continued to tweet concerning the animal within the following days, contributing to the coin’s value explosion to an all-time excessive of virtually $2.30 on November 14. At that time, PNUT’s market cap surpassed $2 billion, putting the asset among the many high 10 largest meme cash.

Up to now month, although, Peanut the Squirrel has misplaced over 40% of its valuation whereas its capitalization fell under $800 million.

Be Cautious With Memes

The improved volatility within the sector and the shortage of basic worth (in lots of meme coin initiatives) ought to function warnings to these considering leaping on the bandwagon.

Merchants who nonetheless wish to enter the ecosystem ought to observe some key guidelines to keep away from a devastating final result, reminiscent of investing solely as a lot as they’re able to lose and conducting correct analysis beforehand.