Elon Musk behind Quick Surge in Meme Coin Economy
The global meme coin economy saw a quick boost when Elon Musk posted a tweet comprising a snapshot of his pet dog.
Musk’s tweet, carrying Floki’s picture, showcased his dog dressed in ‘a black t-shirt’ with the logo which said ‘CEO’. Musk tagged the photograph as ‘The new CEO of Twitter is amazing’.
The tweet post turned out impressively influential, particularly with regard to sending up the global meme coin economy.
Although the meme coin economy is made up of several cryptocurrencies, meme coins such as DOGE, SHIB, Floki, etc. are the leaders.
These tokens have been performing too well ever since their inception and the token that started it all was none other than Dogecoin.
Even Shiba Inu was once the meme coin market leader until its demise came and its value plummeted. It ended up losing its spot to Dogecoin, which regained its place as the largest meme coin.
Now, the FLOKI token is in the market and its adoption level is constantly rising, giving hope to the meme coin market.
According to data provided by CoinGecko, Floki’s underlying value surged by at least 41% in less than 24 hours post-Musk’s tweet.
It may be noted that Floki is the name that is actually been derived from Musk’s dog’s breed.
Floki is currently one of those meme coins, whose progression has been on point since the beginning of 2023.
From 1st to 31st January 2023, the underlying value of Floki has increased by over 100%.
Elon Musk Phenomena
It is quite often when Musk posts a tweet mentioning meme coins, a huge impact is seen in their economies afterward.
On other hand, Musk had claimed several times in the past that he has a strong connection with meme coins, particularly DOGE and SHIB.
The rumor is that Twitter, under the auspices of Musk, would soon be introducing a system for processing payment in meme coins.
Post-Musk’s Tweet Influence
Soon after Musk’s tweet, investors flocked into pumping money into meme coins, in particular DOGE and SHIB.
According to Coindesk, at least 5.4% gains had been acquired by DOGE alone in less than 24 hours and after Musk’s tweet.
Musk, who is also the CEO of Tesla, acquired Twitter on 27th October 2022. After the acquisition of Twitter, the first action Musk initiated was the removal of the globally popular CEO of Twitter namely Parag Agarwal.
Prior to the acquisition of the world’s biggest social media platform, Twitter, by Musk, Agarwal, and Musk, both enjoyed a cordial relationship.
The relationship however started to deteriorate when Musk became the majority shareholder of Twitter.
Consequently, at the end of 2022, Musk decided to remove Agarwal from the post of CEO.
Thereafter, Musk even unfollowed Agarwal from his Twitter handle, although Agarwal continues to follow Musk to date.
Musk Taking over the Charge of Twitter’s CEO
When Agarwal was sent home, his charge was then subsequently taken over by Musk himself as a ‘temporary arrangement’. However, Musk was actively criticized for his action of removing Agarwal and becoming Twitter’s CEO.
This then led Musk to announce in December 2022 that he was looking for a new CEO of Twitter.
He even posted a tweet suggesting that he would soon be resigning from the post of CEO as soon as he finds a suitable replacement.
So far Twitter remains to be run by Musk as its temporary CEO while the network is still looking for a suitable candidate.
Meanwhile, Musk’s phenomenon continues to hold the field i.e. sending meme coin economies up by every minute.
Once again, investors are drawing their attention toward meme coins such as DOGE and SHIB.
Usually, this phenomenon takes a few days for reverting back to normalcy. It is expected that the ‘Musk effect’ will soon come to an end, perhaps in the next 24 hours.