After Elon Musk, the owner of Twitter, announced the social media platform’s redesign, a starling development saw a sudden influx of tokens marked with an “X” symbol on decentralized exchanges (DEX). Musk’s tweets and Yaccarino’s confirmation caused “X” tokens to surge up to 1,200% in a day. However, when shady developers introduced additional tokens, worries surfaced regarding their authenticity and the potential for pump-and-dump operations.
The Interim X logo goes live later today.
— Elon Musk (@elonmusk) July 23, 2023
In the renaming announcement, Twitter’s CEO emphasized “X” as the future of limitless interaction. It will include audio, video, messaging, payments, banking, and create a global marketplace for various offerings. The AI-powered “X” program aims to connect individuals worldwide in previously unthinkable ways.
When Musk combined Twitter into X Corp. in April 2023, he also set up the artificial intelligence business X.AI Corp. Musk started his own AI business, xAI, to understand the cosmos.
Several “X” tokens appeared on various blockchain networks after the social media announcement. Some of these coins asserted to have clear development roadmaps, while others appeared to be nothing more than pump-and-dump operations. Despite the connected project’s closure in May, one token saw an astonishing 1,200% increase in value. This suggests that low-cap traders immediately purchased anything with the “X” logo in the hopes of capitalizing on the trend.
Musk Inspired “X” Tokens: Excitement, Caution, and Regulatory Scrutiny
Notably, newer tokens inspired by Musk’s business projects, such as “AI-X” and “Deus Z”, showed huge rises. “AI-X”, which has the same logo as SpaceX, increased tenfold in value, while “Deus X” which was named after a tweet by Musk, saw an astonishing 2,600% rise in value.
Professional traders attributed surging excitement around meme coins like “X” tokens to low volatility in popular cryptocurrencies (Bitcoin, Ethereum). In search of bigger returns, some traders gambled on meme coins and low-cap tokens during the less volatile market conditions. They saw short-term opportunities in these investments. James Wo, the creator of DFG, recognized the importance of meme coins in cryptocurrency trading. Speculative assets like meme coins attract traders for their potential for substantial gains, even in negative markets. Although considered risky, the allure of significant upside persists.
However, the increase in “X” tokens also prompts worries about maniacal speculation and perhaps criminal activity. For unskilled investors who follow the trend without doing adequate research, the rapid introduction of these tokens and the resulting price volatility may result in substantial losses.
Industry experts advise caution and stress the value of due diligence as the crypto community navigates this surge of “X” tokens. Investing in speculative assets entails risks, and traders should be aware that there is a chance for both big returns and losses. To safeguard investors and maintain market integrity, regulatory organizations may closely watch the situation’s developments as it pays out.