The Musk Effect: Santa Floki Coin Soared 18,800% In 2 Days Following Tesla’s CEO Tweet

The world’s richest man posted a photo on Twitter about his dog wearing a Santa Claus outfit with a message “Santa Floki.” So far, nothing out of the ordinary. Yet, a cryptocurrency token with the same name surged by five-digit percentages in the following hours before it dumped shortly after.

• Aside from being the CEO of some of the most prominent companies nowadays, Elon Musk’s name is synonymous with massive gains for memecoins in the crypto space.
• His influence has grown well outside of Dogecoin, where it stood at the beginning of the year as numerous copycats emerged in attempts to take some of the glory of the original memecoin.
• Even Musk tweets that are not explicitly engaging with digital assets have resulted in incredible gains for tokens containing the same name.
• The latest such example came on Christmas when the billionaire shared a photo of his dog – called Floki – in a Santa Claus outfit, and he named it “Floki Santa.”

Floki Santa pic.twitter.com/y3CTq16bGi

— Elon Musk (@elonmusk) December 25, 2021

• While this sounds somewhat normal during the Holiday season, what followed next is normal only in the cryptocurrency space.
• The creators of a digital asset with the same name but in reverse – Santa Floki (with the ticker HOHOHO) – decided to capitalize on this opportunity and claimed that Musk has tweeted about their project, not just about his dog as he seemingly did.
• The price of the coin skyrocketed in the following hours and days from $0.000000012935 to a new all-time high of $0.00000245 on Monday, according to CoinGecko. This represented a mindblowing 18,840% surge in roughly 48 hours.
• Since then, the memecoin has slumped by more than 60%, and HOHOHO now trades at $0.000001.