Elon Musk’s passion for his pet, a Shiba dog, went viral on Twitter after he posted a new photo of the pet. Still, the billionaire inadvertently influenced the rise of 29 suspicious cryptocurrencies in the market.
Christened “Floki”, Musk’s dog had already found resonance in the global crypto community, which created a currency called Floki Inu.
That’s because Elon has already stated that he is a fan of the Dogecoin coin, the most popular memecoin in the industry. After the statement, many memecoins appeared, such as Shiba Inu, Baby Doge and several others.
Twitter’s new CEO is awesome pic.twitter.com/yBqWFUDIQH
— Elon Musk (@elonmusk) February 15, 2023
Photo of Elon Musk influences the rise of 29 suspicious cryptocurrencies, the company warns
While he just wants to show his dog in public, Elon Musk and his passion for cryptocurrencies influenced the creation of 29 new tokens this Wednesday (15).
They all have the brand “FLOKI” and are trying to attract investors to buy the coins. Despite this, the security company Peckshield has issued a warning that of the 29 new cryptocurrencies, at least 6 are “jars of honey”, that is, they intend to attract victims.
Another 5 new coins have already dropped by 98% since their creation, showing that the risk for investors remains in the market.
According to a company note, investors should avoid falling into such schemes at the risk of losing all their money.
“PeckShield has detected 29 tokenized $Floki tokens, 6 of which appear to be honeypots, 5 of which have already dropped above -98%. DO NOT become a victim of this!”
#PeckShieldAlert: PeckShield detected 29 $ floki symbolized tokens, of which there appear to be 6 #honeypots5 of them are already down more than -98%. #Doge #SHIBA #floki *DO NOT* fall prey to it! https://t.co/FdTbJIYeIh pic.twitter.com/t3iWlMxxYc
— PeckShieldAlert (@PeckShieldAlert) February 15, 2023
Elon Musk effect reversed
Since Elon Musk got involved with Dogecoin (DOGE), now the 9th largest cryptocurrency by market capitalization, he has increased the value of the coin several times over.
The situation eventually caught the attention of wary investors, who bought the coin whenever he mentioned his passion, making this an “Elon Musk effect” on DOGE prices.
However, the new traps of scammers can only have a detrimental effect, as investors can lose everything when buying a currency in the hope of appreciation.
The low price of memecoins is attractive to unsuspecting people
Memecoins are meme-inspired cryptocurrencies and often have a low value compared to other more established currencies such as Bitcoin or Ethereum.
For example, memecoins are ultimately driven by speculation and popularity rather than solid fundamentals. This means that its value can be influenced by external factors, such as social media events. For example, the publication of Elon Musk proves the situation.
In addition to the risks already mentioned, memecoins have high volatility, making them quickly gain and lose value. As with any investment, those interested in purchasing such toys should exercise caution.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
