Elon Musk’s Meme Coin Endorsement Sparks Significant Gains for PEPE and KEKIUS

On the last day of 2024, tech mogul Elon Musk surprised his 210 million X followers by changing his display name to ‘Kekius Maximus’ and updating his avatar to an image of the popular meme character Pepe the Frog dressed in golden gladiator armor and holding a video game controller.

This sudden rebranding has had a notable impact on the cryptocurrency market, particularly on meme coins PEPE and KEKIUS. Ethereum-based KEKIUS has rallied over 2,600%, hitting an all-time high of $0.301, while its market cap rose from $12.8 million to over $265 million. Meanwhile, PEPE embarked on a parabolic rally, rising roughly 20% to minimize some of the past week’s losses.

What Triggered the Price Surge?

Before making the changes to his X profile, Musk dropped an enigmatic hint in a Tuesday X post, stating, “Kekius Maximus will soon reach level 80 in hardcore PoE.” This tweet references the online game Path of Exile, where reaching level 80 marks a significant milestone in the game’s progression system.

Musk’s affinity for Pepe-themed imagery is well-documented, with previous instances of him sharing Pepe memes on X sparking similar market reactions. His recent rebranding has also spurred the creation of several similar meme coins on token deployers like Solana-based Pump.fun and Tron’s SunPump, bearing tickers such as KM, KEKIUS, and MAXIMUS.

A Word of Caution for Meme Coin Traders

While the recent price surge may be exciting, meme coin traders should tread carefully. Rallies driven by celebrity hype are often short-lived, a pattern repeatedly seen in the crypto space.

For instance, Elon Musk’s tweets about Dogecoin in late 2020 sparked a massive rally, pushing DOGE to an all-time high of $0.7376 by May 2021, with its market cap exceeding $47 billion. However, the excitement eventually faded, and Dogecoin’s price plummeted, closing the year at just $0.1708.

Similarly, the Solana-based meme coin Water shot up 400% after soccer star Lionel Messi promoted it on Instagram, only to erase almost all of the gains shortly after.

Key Takeaways for Meme Coin Investors

  • Be cautious of celebrity-endorsed rallies, as they can be short-lived.
  • Conduct thorough research before investing in meme coins.
  • Diversify your portfolio to minimize risks.
  • Keep an eye on market trends and adjust your investment strategy accordingly.

As of press time, PEPE was down 9% from its intra-day high of $0.000021 as PEPE holders booked profits. Meanwhile, KEKIUS has pulled back 6% from its all-time high of $0.301 and was exchanging hands at $0.286.

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