Elon Musk made Floki the CEO! The tweet stimulated a big pump in meme coins, but experts warn that the rebound may be hard to sustain.

Elon Musk posted a playful tweet on the social media platform X, announcing that his pet Shiba Inu Floki has “returned to work” as the virtual CEO of X Corp, along with an AI-generated video. This post immediately triggered speculative trading of the related meme coin FLOKI, surging over 33%. However, experts warn that market rebounds influenced by celebrities are hard to sustain.

Musk's AI video triggers a 33% pump in FLOKI in one day

(Source: X)

On October 20, Musk posted on the X platform that Floki “returns to the workplace”, with the dog being appointed as the virtual CEO of X company. The post included an AI-generated video showing the Shiba Inu sitting at a large office desk, dressed in professional attire, striking a pose of a professional manager. This creative content combining pets, AI technology, and corporate culture immediately went viral on social media.

CoinMarketCap data shows that FLOKI price has quickly rebounded. It rose from a low of 0.00006452 USD to a high of 0.00008930 USD, resulting in a significant pump of over 33% for the FLOKI memecoin. However, the asset subsequently saw a slight pullback to 0.00008193 USD. The rapid peak reflects buying pressure, and the rebound occurred at a very fast pace.

This recent surge strongly demonstrates the volatility of meme coins, confirming that influential figures play a significant role in such markets. High-profile endorsements are driving dramatic market fluctuations, and the FLOKI event is a great example to gauge this massive influence. According to CoinMarketCap, the video reenacted a joke from social media in 2023, showcasing Musk's knack for leveraging internet culture and historical memes to generate buzz.

From a technical perspective, a single-day pump of 33% is almost impossible to occur among mainstream coins, but it is relatively common in the meme coin market. This kind of extreme volatility creates short-term profit opportunities but also brings significant speculative risks. Many traders immediately bought in after Musk's post, hoping to ride this wave of increase, but the subsequent rebound shows that such a pump is difficult to sustain.

The Connection Between Musk and FLOKI and Its Market Influence

(Source: CoinMarketCap)

Elon Musk has long been known for his strong influence on the cryptocurrency market. His social media accounts are often followed by millions of traders, and even a brief and obscure post can trigger rapid price fluctuations. He has a massive fan base, and his influence often prompts traders to make immediate trading decisions.

The birth of this token is also closely related to Musk's family life. In 2021, he announced his Shiba Inu's name—Floki, and this news immediately led to the birth of a memecoin. Since then, this token has attracted a large and active following. Musk's pet has become the mascot of dog-themed tokens, and his recent article proves this once again.

Musk's Historical Impact on the Meme Coin Market:

• DOGE: Elon Musk has publicly supported it multiple times, calling it “the people's cryptocurrency”, leading to multiple price pumps.
• Kekius Maximus: After Musk changed the profile picture on the X platform, the related token surged several times in a short period.
• CumRocket: A tweet from Musk unexpectedly triggered price fluctuations for the token.
• FLOKI: Since its naming after a dog in 2021, it has fluctuated multiple times due to mentions by Musk.

This model validates the ongoing influence of his online content. A person's social media activity can have such a huge impact on an entire asset class, which is almost impossible in traditional financial markets. However, in the cryptocurrency market, especially in the meme coin sector, every statement from Musk can trigger hundreds of millions of dollars in capital movement.

Elon Musk frequently appears online for two purposes. His social media activities not only enhance engagement on platform X but also successfully attract public attention to all his projects. This undoubtedly represents a huge exposure for his entire business ecosystem. From Tesla to SpaceX, from Neuralink to the X platform itself, every post made by Musk is providing free promotion for his business empire.

FLOKI Official Response and Increased Recognition

FLOKI's official X account commemorated this moment, referring to it as “the people's cryptocurrency,” and pointed out that its recent launch of ETP in Europe and listing on Robinhood demonstrated its growing recognition. This response shows that the FLOKI team is working hard to transform the project from a pure meme coin into a digital asset with practical applications and institutional recognition.

The launch of the European ETP (Exchange-Traded Product) is an important step for FLOKI towards mainstream adoption. ETPs provide traditional investors with a compliant investment channel without the need to directly hold cryptocurrencies. Such products typically require passing strict regulatory scrutiny, and FLOKI's ability to launch an ETP demonstrates that it has met certain compliance standards.

The listing on Robinhood opens up the U.S. retail market for FLOKI. Robinhood is one of the most popular zero-commission trading platforms in the U.S., with tens of millions of users. The listing on Robinhood means that FLOKI has gained broader liquidity and a larger investor base. These two milestones indeed prove that FLOKI is transitioning from a purely speculative target to a digital asset supported by certain infrastructure.

Experts Warn of Speculative Risks and Regulatory Concerns

However, market observers have been warning retail investors. They have explicitly cautioned that the market rebound influenced by celebrities is difficult to sustain. These posts are mainly intended to trigger short-term volatility and speculative buying, and the current financial risks remain extremely high. Industry experts warn against falling into the speculative rebound triggered by the celebrity effect.

This kind of repeated market manipulation is indeed concerning. The continuous actions of one individual can bring systemic risk to the market, and such concentrated influence can easily have a huge destructive impact on these small coins. Regulatory agencies around the world are still closely monitoring this powerful influence. The U.S. SEC has investigated multiple cases involving celebrity promotion of crypto assets, and although Musk's tweets are often regarded as personal opinions, their actual impact on the market has already attracted the attention of regulators.

Ultimately, Floki's recent post serves as a very powerful and vivid reminder that clearly exposes the speculative nature of the meme coin industry. Traders need to exercise extra caution when entering such markets, and they should not rely solely on social media to make investment decisions. The value of meme coins primarily comes from community consensus and market sentiment, lacking the intrinsic value support of traditional assets, which makes them highly susceptible to sudden events and emotional fluctuations.