Elon Musk, the tech mogul and owner of X, Tesla and SpaceX, has immense influence in the crypto industry especially the memecoin sub-genre where his dominance remains unmatched.
Fathom this- according to Coingecko, there are over 103 Elon Musk-related memecoins listed with them and the combined memecoin market cap has been put at roughly $95 billion. Musk exerts significant influence on the next US President Donald Trump and the dynamic duo is expected to inspire many future memecoin creators.
This process has already started with coins like Elon Trump (ET), whose mascot is a cartoonish rendition of Elon donning a Superman costume or a suit and Donald’s wig.
The creators of the coin manifest that Elon and Donald have come together in times of uncertainty when freedom and truth are needed the most, using X to make crypto great again. The token is doing relatively well on the market, with its current price 334% higher than the all-time low.
Another well-performing, Musk-related coin is the Department of Government Efficiency or D.O.G.E., named after the commission Elon is willing to join to help the Trump administration make the government more efficient. At the time of writing, it had gained over 20%.
Dogius Maximus and Shrubius Maximus were up 26% resp. 16%. Dogius’ image is a Shiba Inu wearing crusader armour or a royal emperor gown, and Shrubius is a hedgehog who lived in ancient Spina. Both animals are associated with Musk, as he likes the dog breed and has a hedgehog as a pet.
A mention by Musk goes a long way
Musk’s undeniable influence has primarily affected Dogecoin (DOGE), widely recognized as the first memecoin and the first dog coin. It is at #7 among the top 10 coins by market cap, with a total market value of $53 billion. Clients of SpaceX and Tesla can use DOGE to pay for merchandise.
Musk has also accepted DOGE payments for a satellite mission to the moon. He called himself the “Dogefather” in an SNL sketch in 2021, and the coin added 30% to its value after he briefly switched the X logo to a picture of a Shiba Inu in 2023. Additionally, he has publicly defended the coin’s unlimited supply and inflation, points of frequent criticism.
Few memecoins have merited a mention from Musk, which crucially helps differentiate them in this crowded space. In fact, his only other memecoin mention has been of LADYS. It was created in 2023 and has captured organic attention since, with the nod from Musk on X causing a further spike in its price.
LADYS describes itself as “the points for karma, charm, and beauty” and “the accumulation of clout.” Therein lies its unique premise. Accumulating clout is about doing what feels right. There are times when you express your true beliefs, and some people hate you for it, but your candor inspires trust in many others.
Sustainable development beyond hype
The creators of LADYS are aware that a mention from Musk will only get the coin so far. To remain exciting and relevant, they plan to launch various products and offerings in the near future, enhancing engagement for token holders and community members.
Most memecoins are not associated with engaging activities and interesting products. This is the crux of the matter: they must be engaging to succeed. The most successful ones – DOGE, SHIB, PEPE, etc. – came to the fore through popular internet trends or memes but managed to stay relevant.
The timeless appeal of a passionate community and investment potential
Dogecoin and Shiba Inu doubled in value in the spring of 2024, according to intelligence firm Messari. These Musk-related memecoins helped establish the asset class as a force to reckon with. Memecoins exemplify how passionate communities, speculation, and volatility fascinate investors, drawing attention to the unique dynamics within the segment.
There is a pronounced shift in the perception of memecoins, namely from frivolous and risky investments to legitimate assets. This shift has enabled a much greater allocation of personal finances to the class, far exceeding what one might typically spend on a leisure activity, like gambling at a casino.
It has been estimated that the most recent cycle’s surge in memecoin prices has been analogical to Bitcoin’s initial rally from $100 to $1,000. That said, there are winners and losers among memecoins, and Dogecoin and LADYS have demonstrated staying power. They have two of the most devoted communities in the crypto space, pioneered by Musk, whose support has proven pivotal
Conclusion
How did memecoins become a mainstream asset class? They are grounded in a wave of social media popularity surrounding a digital image, a virtual character, an event, or an action.
Another reason for mainstream adoption is the lack of a requirement for a solid technical foundation (unlike Bitcoin, Ethereum, etc.). Memecoin transactions are affordable, and the low entry barrier makes them appealing to newcomers eager to explore crypto investments. Their online communities generate content supporting a trend.
They share this content to help sustain the memecoin’s value. Leveraging community involvement and hype yields returns for early investors when a coin goes viral. Memecoin marketers utilize entertaining campaigns. Listings on leading exchanges raise liquidity and simplify the sale process.
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