Most cryptocurrency “hodlers” are accustomed to volatility in the market, barely batting an eye at a 15% intraday swing up or down.
Over the last 36 hours, the Elon Musk meme coin has taken a wild ride.
The recently launched Elonomics (ELONOM) meme coin, on the other hand, has seen more volatile market movements in the last 36 hours than any Twitter storm sparked by its inspirational namesake, Elon Musk. It’s worth noting that Musk hasn’t acknowledged any direct involvement with this project. That being said, the timeline of this annotated chart below depicts the highs and lows, highs and lows, highs and lows that occurred over the last day and a half.
Dissection of the Musk-themed mem coin
To recap, as Monday, Nov. 8 approached, ELONOM was holding steady at $3.49 per meme before exploding 20 minutes later to more than $77 – a 21x multiple. Within five hours, it has plummeted and has been stuck in the high $20s for more than a day. The meme gained 28% to just over $38 per token at 12:04am this morning, only to lose 95% of its value in six minutes, to $1.83.
Since then, the price has risen back above $4 per unit and has remained stable. There were no obvious spikes in trading volume, whale sales, or news to explain such wild swings. This price action is made even more perplexing by the fact that ELONOM is an elastic supply token, which is supposed to smooth out volatility.
Tokens with elastic supply are supposed to reduce volatility.
The ELONOM meme is a rebase token with an elastic supply that is programmed to automatically increase or decrease the total amount of circulating supply based on price changes in order to maintain a predetermined price-to-supply ratio. As prices rise or fall, supply in wallets shifts proportionally to maintain the ratio’s status quo. It’s possible that the algorithm is jittery and still in development, resulting in these visceral overcorrections.
ELONOM hodlers may want to consider a more relaxing activity, such as juggling live chainsaws, until the programming for this meme coin is ironed out.