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

TL;DR

Elon Musk’s influence has once again caused wild fluctuations in meme coin prices, with KEKIUS rising 4,000% before collapsing 60%. The rapid price movements and lack of fundamental value in many meme coins highlight the importance of careful research and investing only what you can afford to lose. hard pour

The frog-themed meme coin Kekius Maximus (KEKIUS) has been a hot topic in the crypto space in recent days.

The token (whose logo depicts a frog dressed in ancient Roman armor) experienced a price increase of nearly 4,000% between December 30th and January 1st. The bombshell could be attributed to Elon Musk, who changed his profile picture to X with the meme of the same name.

The impressive spike allowed savvy traders to earn millions due to entering the ecosystem at the right time. Lookonchain recently revealed the case of an industry participant who turned a $66 investment in KEKIUS into over $3 million in just 18 days.

However, the currency’s recovery was short-lived, with its valuation falling 60% in the last 24 hours. At one point, KEKIUS dropped as low as $0.08, while it is currently trading around $0.15 (according to CoinGecko data).

KEKIUS Price, Source: CoinGecko

Its sudden collapse appears to have once again been triggered by Tesla’s CEO, who is now visible in X as himself in the background of the American flag and not as the frog-themed token logo.

Over the past few years, Musk has influenced the prices of many other meme coins through his tweets, public endorsements, and actions. One recent example includes his comments about Peanut the Squirrel (PNUT).

The meme coin is inspired by a pet squirrel named Peanut, who was euthanized for rabies testing after it reportedly bit a DEC worker during a seizure operation. His death in early November last year sparked huge controversy, with many people describing the move as unnecessary as the animal had lived indoors for years and showed no signs of the disease .

Musk was among the critics, calling the effort “government overreach” and teasingly saying “Donald Trump would save the squirrels.” He continued to tweet about the animal in the following days, helping the coin’s price explode to an all-time high of nearly $2.30 on November 14. At the time, PNUT’s market capitalization exceeded $2 billion, placing the asset among the 10 largest. meme coins

In the past month, however, Peanut the Squirrel has lost more than 40% of its valuation, while its capitalization fell below $800 million.

Be careful with memes

The increased volatility of the sector and the lack of fundamental value (in many meme coin projects) should serve as a warning to those considering jumping on the bandwagon.

Traders who still want to enter the ecosystem should follow some key rules to avoid a devastating outcome, such as investing only as much as they are willing to lose and doing proper research beforehand.

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