Musk video causes memecoin Floki to jump 29%

Memecoins are back on the scene, and guess who’s behind it again? Elon Musk, of course. His faithful Shiba Inu, Floki, has just caused a small earthquake in the markets. All it took was one absurd video, broadcast on X, for FLOKI – the token of the same name – to jump by almost 30%. In a crypto industry where fundamentals often give way to hype, the Musk effect continues to act as a catalyst.

Musk, Floki and the butterfly effect of crypto markets

This Monday, Elon Musk published on X an AI-generated video showing his dog Floki, glasses on his muzzle and tied tie, mimicking a CEO in the middle of a meeting. “Numbers, numbers, numbers, numbers? That works ? Yay“. The legend? “Flōki is back in charge as CEO of 𝕏!»

A few minutes later, FLOKI, the eponymous memecoin, takes off by 29%. From $0.00006572 to $0.00008469, according to CoinGecko. As of this writing, it is stagnating around $0.00007998. The maneuver is an echo of February 2023, when Musk had already appointed his dog as CEO, triggering a 146% jump in FLOKI's capitalization.

This phenomenon is nothing new. Musk has been tossing around Dogecoin for years. A joke on SNL? +500 million in 15 minutes. A change of logo on X? Pump. His simple tweet remains a macroeconomic variable for the memecoin sector. And for some traders, like Bonk Guy, it remains a strategy :

How many times did FLOKI's price explode the last time Elon did this?

If I remember correctly, he followed up the posts with tweets and memes about “Floki CEO of It would be ironic if we saw a remake!

Memecoins: between viral marketing and fragile markets

FLOKI's rebound comes as the memecoin market is just emerging from carnage. In October, these assets lost 40% of their value in a few days. The capitalization increased from 72 to 44 billion dollars (source: CoinMarketCap). Then, barely recovered, a second collapse followed, erasing 230 billion in capitalization in a single day from the entire crypto market.

In this chaos, Musk's video acts like a bandage on a still open wound. It makes you smile, it makes you buy. But does this hold up over time? FLOKI is an Ethereum crypto, like so many other narrative-based tokens. When Musk tweets, she flies away. But the euphoria subsides as quickly as it rose.

Behind this volatility lies another question: what are these increases due to? Neither to technology, nor to a use case. Simply good storytelling. And in this game, Elon Musk is still the absolute master.

Floki, lever or mirage? Conflicting signals from the market

Since Elon Musk's tweet, euphoria has spread to part of the market, but the picture is not that simple. Certainly, technical indicators have turned green – AO, CMF, 20 EMA – suggesting bullish momentum for FLOKI. But this is not the first time that memecoin has soared before falling back.

On the crypto forums, the atmosphere is divided. Some are banking on a repeat of the scenario of 2023, when Floki had doubled in value. Others are tempering, recalling that FLOKI has already lost more than 40% over three months, before Musk's rebound.

Added to this is the proliferation of opportunistic tokens like “Flōki CEO of X”, launched a few hours after the tweet, briefly reaching $423,000 market cap. This multiplication can dilute interest in the original token.

What to remember about Floki and Musk's tweet

• Floki jumped 29% in a few hours after a tweet from Elon Musk;
• The CMF indicator turned green again, signaling an influx of capital;
• Derivative tokens have flourished, some reaching over $400,000 in capitalization;
• Despite everything, FLOKI remains behind its February 2023 highs.

FLOKI's outburst does not seem isolated. As for Shiba Inu, another iconic memecoin, a rebound is underway. After hitting its annual low, the asset is attempting a technical recovery which could restore color to the entire sector. Musk's breath sometimes acts like a current of air. But there are signs that other tokens may fire their engines soon.