On the last day of 2024, the world's richest man, Elon Musk, once again ignited the cryptocurrency market with his tweets.
This time, he did not release any grand rocket plan, nor did he share Tesla's latest achievements. Instead, he uploaded a seemingly simple Pepe the frog emoticon.
In just a few hours, the price of a small cryptocurrency, Pepecoin ($PEPE), surged by more than $20.
%. Some people exclaimed, "The frog took off!" Some people sighed, "This is another carnival in the cryptocurrency circle, and it is also the best embodiment of Musk's humor."
Musk and the cryptocurrency world: promoter or disruptor?
This is not the first time Musk has "made trouble."
As early as 2021, his tweet "Dogecoin to the moon" caused Dogecoin (DOGE) to surge 500% overnight.
In the following years, he occasionally tweeted his views on cryptocurrencies, and the market fluctuated accordingly.
There are even statistics that Musk's tweets can drive cryptocurrency trading volume up by more than 50% in just 15 minutes.
However, this time the Pepe coin surge seems even more bizarre. Pepe coin is a meme cryptocurrency that was born in 2023. At first, it was just a spoof product between a few "coin circle players".
Compared with mainstream currencies such as Bitcoin and Ethereum, the market value of Pepe Coin can be said to be a drop in the bucket, and even many investors do not really understand its use. However, once Musk gets involved, the situation is completely different.
Historical data: The craze and risks of meme-based cryptocurrencies
The market performance of memetic cryptocurrencies has always been known for its “high volatility and high risk”.
From Dogecoin in 2021 to Shiba Inu in 2023, and then to Pepecoin today, the prices of these small currencies often fluctuate dramatically in a short period of time, making people feel excited and vigilant.
Taking Pepecoin as an example, since its launch in April 2023, it has experienced several "boom-bust" cycles:
• Early April 2023: The price rose 1,200% within two weeks of going online, attracting a large number of “gambler-type” investors.
• June 2023: As market sentiment cools, prices plummet 80% and many begin to question the value of memecoin.
• December 31, 2024: Musk posted a picture, and Pepe coin soared from US$0.00001823 to US$0.00002137, completing a 20% increase in just 3 hours.
Although these data look exciting, the vast majority of participants in the memecoin market are not long-term investors, but speculators seeking short-term profits. Once the heat fades, the possibility of price correction or even collapse is very high.
The intersection of memes and technology: Why Pepe the Frog resonates
Pepe the frog is an iconic character in Internet culture, symbolizing humor, rebellion and freedom for countless young generations.
This symbolism coincides with the decentralized concept of cryptocurrency.
Perhaps because of this, Pepe Coin was able to quickly trigger "cultural recognition" and market enthusiasm. Musk's tweet was just a catalyst for this carnival.
It is worth mentioning that Musk himself seems to regard these "meme economics" as an experiment.
He has publicly mentioned his interest in meme culture many times, and said in an interview: "Memes are one of the most powerful ways to spread information."
Sober reflections after the market frenzy
However, there are risks behind all this. History shows that the surge in memetic cryptocurrencies is often followed by an inevitable plunge.
When market enthusiasm cools, those investors who “chase highs” may face huge financial losses. The uncertainty in the cryptocurrency field makes it easy for ordinary investors to fall into blind pursuit.
A picture from Musk may trigger a short-term carnival, but for investors, it is more important to stay calm and avoid being carried away by emotions.
As the old saying in the cryptocurrency world goes: "Making money depends on luck, losing money depends on strength."
Message to 2025: The Frog's Leap and the Game of Human Nature
In a sense, the surge in Pepe coin is a microcosm of human nature and desire.
It reminds us that in the pursuit of wealth, the intersection of humor, culture and technology can also be a driving force of the market.
However, as an investor, you must remember that it takes time to accumulate wealth, and the real winners are always those who are rational and patient.
As for which currency Musk will "ignite" next time, no one knows. But what is certain is that this technology madman can always bring us new surprises - or new crazes. $PEPE
