Most cryptocurrency “hodlers” are used to volatility within the space, barely batting an eye at a 15 percent swing up or down intraday.
Elon Musk meme coin has wild ride over the past 36 hours
However, the recently launched Elonomics (ELONOM) meme coin had more mercurial market movements over the past 36 hours, than any Twitter storm instigated by its inspirational namesake, Elon Musk. It’s important to note that Musk has not acknowledged any direct connection with this project. That being said, the timeline of this annotated chart below, charts the highs and lows and highs and lows that occurred over the past day-and-a-half.
Image via coinmarketcap.com
Breakdown of the Musk-themed mem coin
To recap the chart, as Monday, Nov. 8 was winding down ELONOM was holding steady at $3.49 per meme, when it erupted 20 minutes later to more than $77 - a 21x multiple. Within five hours it plummets and then hovers in the high $20s for more than a day. The meme edged up 28% to just over $38 per token at 12:04am this morning - only to crater 95 percent of its value in six minutes, to a price of $1.83.
The price today has since floated back above $4 per unit and has been holding steady. There were no obvious trading volume spikes, whale sales, or news to explain such vicious whipsaw swings. What makes this price action doubly puzzling is that ELONOM is an elastic supply token, which is supposed to smooth out volatility.
Elastic supply tokens are supposed to reduce volatility
The ELONOM meme is an elastic supply or rebase token that’s programmed to automatically increase or decrease the total amount of circulating supply based on price changes to stay within a preset price-to-supply ratio. As prices go up or down, the supply in wallets shifts directions proportionately to maintain the ratio’s status quo. It’s possible that the algorithm is twitchy and still in development, which is causing these visceral overcorrections.
Until the programming for this meme coin gets straightened out, ELONOM hodlers might consider a more relaxing activity - like juggling live chainsaws.