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    ApeCoin price rises, then falls on Elon Musk’s latest Twitter antics

    ApeCoin price rises, then falls on Elon Musk’s latest Twitter antics

    ApeCoin price rises, then falls on Elon Musk’s latest Twitter antics
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    By CNBCTV18.com  IST (Published)

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    Tesla CEO Elon Musk on Wednesday changed his Twitter profile picture to a Bored Ape collage. Bored Apes are signature non-fungible tokens (NFTs) of the Bored Ape Yacht Club, which is created by Yuga Labs. The BAYC ecosystem's native token is the ApeCoin.

    Tesla CEO and crypto proponent Elon Musk’s latest Twitter feat sent the prices of ApeCoin through the roof on May 4, 2022. Musk changed his Twitter profile picture to a Bored Ape collage, which triggered an upsurge of 20 percent, catapulting the token’s price from $14.58 to $17.49 within an hour of the update.
    Bored Apes are signature NFTs of the Bored Ape Yacht Club (BAYC), created by Yuga Labs. The native token of this BAYC ecosystem is the ApeCoin. However, the token has since pared gains and is trading around $15.9 levels, at the time of writing.
    Musk’s profile picture on Wednesday was a collage of 101 Bored Ape screenshots with Ape 5809 featured in the centre. It is worth noting that the NFT of Ape 5809 currently has a bid worth $327,299.04 on the NFT marketplace OpenSea.
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    The collage used by Musk belongs to auction house Sotheby’s and was made for its “Ape In!” NFT auction event last year. Soon after Musk’s update, Michael Bouhanna, VP for Digital Art at Sotheby’s, confirmed this information over a tweet.
    Sotheby’s sold these 101 individual Bored Ape NFTs for a whopping $24.4 million in September 2021, beating its own estimates of $12 million-$18 million. Bored Apes have taken the NFT world by storm, with some of them fetching millions of dollars. Interestingly, NFTs are backed by blockchains and are unique for every digital asset they represent. The sheer fact that they can simply be screenshot and used elsewhere defeats the entire purpose of being ‘non-fungible.’ Following Bouhanna’s tweet claiming credit, Musk humorously responded with “I dunno … seems kinda fungible.”
    This is not the first time Musk’s Twitter antics caused wild fluctuations in cryptocurrency prices.
    On March 14, 2022, Musk tweeted that he would not be selling any of his Bitcoin, Ethereum and Dogecoin holdings. Following the tweet, the prices of all three cryptocurrencies surged up to 4 percent the same day. Bitcoin rose 3.6 percent, from $37,849.66 to $39,206.27; Ethereum jumped 3.2 percent from $2,513.66 to $2,594.35; and Dogecoin prices rose 4.3 percent from $0.111 to $0.1157.
    On June 14, 2021, Musk had tweeted, “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.” Bitcoin prices surged 4.3 percent in the aftermath of the post after already surging 10 percent the previous day.
    In fact, the impact was so profound that even stock prices of crypto and blockchain firms climbed higher that day. Bitcoin’s correlation with NASDAQ has been increasing over time, and both tend to mirror market sentiments.
    In yet another stunt in June 2021, Musk tweeted an image portraying a breakup with #Bitcoin and a broken heart emoji. It immediately kicked off a panic sell, leading to a 7 percent nosedive in Bitcoin prices.
    “When Elon Musk tweets any crypto-related content, the market expects a reaction,” said ZAP Protocol Co-Founder Nick Spanos to Reuters following the sharp fall.
    Musk’s Twitter salvo has attracted mixed reactions as investors are often left stupefied regarding the unpredictable repercussions on the markets. However, Musk himself is a free speech protagonist who claims to be purging Twitter.
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