Elon Musk inspired meme coin increased 21x and decreased 95% in the last 36 hours – what happened?

Most crypto holders are used to extreme volatility in space, so barely keep an eye on fluctuations around 15% per day.

However, the recently launched coin meme Elonomics (ELONOM) has had more reckless market moves in the past 36 hours than any Twitter storm sparked by venerable old man Elon Musk.

It is important to note that Musk has not recognized any direct association with this project. The following chart shows the highs-low-highs that have occurred over the past day and a half.

Source: Coinmarketcap

On Monday (November 8th) ELONOM held steady at $ 3.49 and 20 minutes later it suddenly jumped over $ 77 – 21 times more. It crashed within five hours, hovering as high as $ 20 for over a day. The meme soared 28% to over $ 38 last night at 7:04 p.m., only to finally crash 95% of its value in just six minutes, dropping to $ 1.83.

Today’s price has bounced back above $ 4 per unit and has remained stable. There is no increase in trading volume, no whale sales, or clear news that could explain such dramatic fluctuations. Even more confusing, ELONOM is an elastic supply token designed to smooth out volatility that is programmed to automatically increase or decrease the total circulating supply based on price changes to stay within the exchange rate.

As the price rises or falls, the supply in the wallet changes in the appropriate direction in order to maintain the status quo of the price. Possibly because the algorithm is unstable and still under development, this is causing the turbulence mentioned above.

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Annie

According to U.today

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