Elon Musk-Inspired Meme Coin Whiplashes From 20x Increase to 95% Decrease in Past 36 Hours

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Tor Con­stan­ti­no

The Musk meme coin is a rebase token, which is sup­posed to supress volatility.

Most cryp­tocur­ren­cy “hodlers” are used to volatil­i­ty with­in the space, bare­ly bat­ting an eye at a 15 per­cent swing up or down intraday.

Elon Musk meme coin has wild ride over the past 36 hours

How­ev­er, the recent­ly launched Elo­nom­ics (ELONOM) meme coin had more mer­cu­r­ial mar­ket move­ments over the past 36 hours, than any Twit­ter storm insti­gat­ed by its inspi­ra­tional name­sake, Elon Musk. It’s impor­tant to note that Musk has not acknowl­edged any direct con­nec­tion with this project. That being said, the time­line of this anno­tat­ed chart below, charts the highs and lows and highs and lows that occurred over the past day-and-a-half.

Chart of wild 36-hour roller coaster price action for ELONOM meme coin

Image via coinmarketcap.com

Breakdown of the Musk-themed mem coin

To recap the chart, as Mon­day, Nov. 8 was wind­ing down ELONOM was hold­ing steady at $3.49 per meme, when it erupt­ed 20 min­utes lat­er to more than $77 —  a 21x mul­ti­ple. With­in five hours it plum­mets and then hov­ers in the high $20s for more than a day. The meme edged up 28% to just over $38 per token at 12:04am this morn­ing — only to crater 95 per­cent of its val­ue in six min­utes, to a price of $1.83. 

The price today has since float­ed back above $4 per unit and has been hold­ing steady. There were no obvi­ous trad­ing vol­ume spikes, whale sales, or news to explain such vicious whip­saw swings. What makes this price action dou­bly puz­zling is that ELONOM is an elas­tic sup­ply token, which is sup­posed to smooth out volatility.

Elastic supply tokens are supposed to reduce volatility

The ELONOM meme is an elas­tic sup­ply or rebase token that’s pro­grammed to auto­mat­i­cal­ly increase or decrease the total amount of cir­cu­lat­ing sup­ply based on price changes to stay with­in a pre­set price-to-sup­ply ratio. As prices go up or down, the sup­ply in wal­lets shifts direc­tions pro­por­tion­ate­ly to main­tain the ratio’s sta­tus quo. It’s pos­si­ble that the algo­rithm is twitchy and still in devel­op­ment, which is caus­ing these vis­cer­al overcorrections. 

Until the pro­gram­ming for this meme coin gets straight­ened out,  ELONOM hodlers might con­sid­er a more relax­ing activ­i­ty — like jug­gling live chainsaws.

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