In a recent tweet, Canadian programmer Vitalik Buterin, who is known for co-founding Ethereum, shared his take on the importance of governance rights for cryptocurrency investors.
Buterin believes that the notion that governance rights make a certain cryptocurrency valuable is "pathological." Paying $500 to get a 0.0001% chance to influence the vote is not a good trade, according to the Ethereum co-founder.
While he agrees that "community governance" is good, he does not want it to be the defining narrative for a certain token.
Obscure token jumps 200%
Meanwhile, an obscure cryptocurrency succinctly named X jumped roughly 200% after the Ethereum co-founder made an off-hand comment about an almost hypothetical token with an arbitrary ticker in his thread about crypto governance. The token is still up 103% over the past 24 hours after paring some gains.
Such bizarre events are not exactly rare in crypto. Speculators sometimes create separate tokens based on the tweets of prominent personalities or pump existing tokens that correspond to certain keywords. Illiquid meme tokens are typically traded on a limited number of decentralized exchanges. Due to extremely low liquidity, it is extremely easy to push their prices significantly higher.
Back in April, a token named "Elon Buys Twitter" spiked by more than 2,400% within just 24 hours after the controversial billionaire reached an acquisition agreement with the prominent social media platform. The token also experienced a wild rally after Musk initially disclosed his 9% stake in Twitter.
Last November, Musk changed his Twitter profile name to "Lord Edge" and instantly inspired the appearance of a meme coin with the same name.
BNB Chain makes it extremely easy to churn out new cryptocurrencies based on literally anything.
Moments after the death of Queen Elizabeth II, cryptocurrency enthusiasts started flooding the market with a bunch of meme coins named after the longest-serving British monarch.
Arman Shirinyan
