The popular meme-inspired cryptocurrency – FLOKI – spiked around 41% after Elon Musk uploaded a photo of his dog dressed as the new Chief Executive Officer of Twitter. Other memecoins, including DOGE, SHIB, and BABYDOGE, also headed north albeit in a more modest fashion.
In his latest tweet, Elon Musk displayed his pet signing documents that he is the new boss of Twitter. He later put glasses on his dog, adding it “has style” and is “great with numbers.”
FLOKI Nearly Up by 50%
Keeping in mind that the Shiba Inu breed is named Floki, it is no wonder why the price of the dog-themed digital asset – FLOKI – skyrocketed. Currently, it trades at $0.00002959, representing a 41% increase compared to yesterday’s figures.
In January, Floki’s price rallied almost 100% after the Floki Inu DAO, the group behind the coin, passed a governance resolution to do a $100 million token burn. The logic behind burning tokens is that it decreases supply, which subsequently adds value to each token provided the level of demand remains the same. This is sort of like a stock buy-back in the crypto world.
This Isn’t DOGE First Rodeo
This isn’t the first time DOGE has spiked on a Musk-related tweet. In late January a report from the Financial Times that said Twitter is designing a system to permit crypto payments, sent the memecoin soaring. A December 2022 report from blockchain analytics firm Santiment cautioned that historically, outsized gains in DOGE and other meme coins like Shiba Inu (SHIB) have been the first sign of a market-wide selloff.
During the last three months, markets have begun to recover from the depths of the FTX-induced crypto winter. By mid-January, Bitcoin had erased its entire FTX-related decline. The market recovery has also kicked off an altcoin season with many of these coins posting double or triple-digit gains.