New cryptocurrency named after Elon Musk’s dog has risen nearly 2,000% since its inception

The crypto-meme fever seems to have no end. After Elon Musk posted a picture of Floki, your Shiba Inu pet on Twitter, the crypto market reacted by boosting some dog coins to exponential gains. Even a new cryptocurrency was created to try to take advantage of the favorable moment for crypto-memes. And so far it has been successful.

Flokinomics (FLOKIN) is a BEP20 token based on the Binance Smart Chain that bills itself as the “best rebalancing token (token rebase) never seen by men.” This type of token has a flexible stock, whose supply increases or decreases depending on its quotation, explains the project’s website:

“This increase or decrease in supply works with a mechanism called rebalancing. When a rebalancing occurs, the supply of the token is increased or decreased algorithmically, based on the current price of each token. In a sense, a token with elastic supply can be matched to stablecoins”.

These adjustments are periodically made to keep the currency quoted at a certain target price, also according to a text published on the website.

Since trading began on Tuesday, one day after the tweet of Musk, the new crypto-meme already accumulates gains of nearly 2,000%, according to data from CoinMarketCap.

Flokinomics price performance. Source: CoinMatketCap

dog pumps

After FLOKIN, the main beneficiary of the new pump of Musk was the Shiba Inu. The SHIB price reached a 400% appreciation during the week after Tesla’s CEO post, even testing again on October 7, its highest five-month high.

Dogecoin (DOGE) had a more modest valuation, but managed to get out of the US$ 0.20 region it had been in since September 20 and came to close above US$ 0.25 for four days in a row, accumulating a weekly appreciation of approximately 12%.

Floki Inu (FLOKI), who was named after Musk’s puppy shortly after his birth, has grown 14% since the tweet.

These are just some of the coins derived from Dogecoin and the Shiba Inus fever in the crypto market. Although they are having their moment of glory, they pose a huge risk to the investor, as Garrick Hilleman, head of research at Blockchain.com and visiting researcher at the London School of Economics, told the New York Post:

“There’s a real risk that if the celebrity loses interest or if a particular crypto-meme is overtaken by another currency, the investor will find himself in trouble.”

The Flokinomics developers have made several nods to Musk via Twitter to gain his membership in the project, but the entrepreneur has yet to make any reference to the new currency.

FLOKIN is currently trading exclusively on SushiSwap, the DEX (decentralized exchange) of Binance Smart Chain and ranks 2872 in the overall ranking of cryptocurrencies by market capitalization. In the last 24 hours, it had a trading volume of US$2,814,729.91 and a 1455% appreciation. Information is from CoinMarketCap.

As Cointelegraph Brasil recently reported, the Dogecoin Foundation, formed in 2014 by the creators and supporters of DOGE, filed an official lawsuit on the Dogecoin brand at the end of August, bothered by the multiplication of projects inspired by the original crypto-meme.

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