When the cryptocurrency was in the midst of a fiery bull market in March 2021, Tesla CEO Elon Musk added a tinder when he announced: “I’m getting a Shiba Inu.” By June 25, when he posted another tweet, this time saying, “My Shiba Inu will be named Floki,” the cryptocurrency market had shed hundreds of billions of dollars. But the recent turmoil was no problem when on September 12, he posted “Floki has arrived” along with an image of a cute pooch sleeping on the rug. By September 15, Floki Inu (FLOKI) had appreciated 1000 percent. The crypto world saw the unbelievable drama unfolding in front of their eyes and their wallets swelling 10-folds within a matter of 72 hours. Elon Musk had done it again.
Shiba Inu is a breed of Dogecoin, a memecoin at its basic, and Floki Inu is the new star of this breed.
When Musk posted his tweet announcing the arrival of Floki on September 12, the meme coin was trading at $0.00001831. Eagled-eyed crypto enthusiasts rushed to the laptops, tablets, and smartphones. In about 75 minutes, Floki was trading at $0.00004037, up nearly 120 percent. It meant every dollar invested before Musk’s tweet had become $2.20. It came from a coin that was not even among the top 2000 coins. In the next 20 minutes, the coin saw a correction of about 35 percent, punishing the latecomers. Not just Floki Inu, but other Floki themed coins such as Shiba Inu, FlokiPup Inu, Baby Floki Inu, and Floki Shiba Inu also saw significant appreciation post-Musk tweet.
A bit about Floki Inu
Floki Inu is a new digital coin that came into being in June 2021 and has a definite link with Elon Musk. The Floki Inu website says, “Floki Inu is Elon Musk’s very own Shiba Inu, and he’s hungry for outer-space treats!”. At present, the coin has about 100,000 holders and expects the market cap to be $5 billion by November 2021.
How Elon Musk used a different way to move markets this time
For a long time, Musk carried the moniker of Dogefather in the crypto world. Now, with the launch of Floki Inu, he has officially fathered a digital coin. It’s his coin built on his tech-intensive promises of spacewalks, space travels and space living. With Floki Inu, Musk has once again displayed his ability to shake up the crypto market.
Earlier this year, he made the coins berserk on the exchanges with his strategic purchase of bitcoins worth $1.5 billion and some cryptic tweets. Bitcoin made impressive gains in subsequent months, leading to an all-time high of $65,000.
Then, Dogecoin saw a ludicrous rise of over 15,000 percent in a year, primarily thanks to Musk’s interest in the coin through tweets in the first few months of 2021. Then, he made bitcoin look more legitimate and attractive by accepting it as a medium of payment for his Tesla cars. It was the beginning of a bullish run on the exchange where most coins appreciated.
But Musk ditched both Dogecoin and Bitcoin weeks afterwards, making the market melt and lose roughly $300 billion. At a time when meme coin doge had risen to become the 4th largest coin, Musk dropped a tweet saying, “I’m getting a Shiba Inu.” Soon, he also announced that Tesla would not accept bitcoin as payment because the coin is not eco-friendly.
Shiba Inu is a dog belonging to a breed of Japanese hunter dogs. Dogecoin is also a coin with a dog as the theme. And there are quite a few other digital coins with Shiba Inu as the theme, with Dogecoin leading the pack in popularity and valuation. All these coins are meme coins meaning they don’t offer any of the values and applications that the Ethereum network, for example, offers. Now, Ethereum is not alone as a host of other networks such as Cardano, Polkadot, and Solana offer more value and functionality on their networks.
So, what is it that fuels the rise of meme coins with Shiba Inu as the theme? It’s the enigma of Elon Musk as the champion of futuristic technologies that makes his choices of digital coins go through the roof. For example, when he accepted bitcoin for payments for Tesla cars, he was seen as lending his weight behind a currency that could become the future of global finance. It shot up the value of bitcoin and all other coins. But when he dropped bitcoin as a payment partner on the grounds that the network consumes a lot of energy, he again sounded logical as he makes his billions by selling electric cars and running a space technology centre that promises commercial flights to space within a few years. However, his companies’ financial reports suggest that he profit $100 million in 2020-21.
(Edited by : Pradeep Suresh V)
First Published: IST