Elon Musk sends another meme coin soaring 460%: check out details

CumRocket (CUMMIES), a BNB Chain-based adult-themed meme coin, skyrocketed over 460% on Thursday after Elon Musk shared a humorous post on X (formerly Twitter) referencing the cryptocurrency.

CumRocket's price surged 400% to a ten-month high of $0.02401 before dropping to $0.007942, still marking an 85% increase within 24 hours.

The surge pushed CUMMIES' market capitalization to over $15 million. The current market cap is around $10 million

Trading volume for the token has exploded surging 1,527% to reach $6.5 million in the last 24 hours.

Musk pokes fun at the IRS

Musk’s post featured a popular "Pepe the Frog" meme, humorously grappling with tax liabilities related to digital assets.

The post appeared to reference recent IRS announcements delaying new cryptocurrency tax reporting requirements, sparking investor interest in related coins.

The post also received a reply from the meme coin's official X account.

Previously, in June 2021, Elon Musk tweeted about CUMMIES during the token-inspired meme's peak popularity.

His involvement caused CumRocket's price to surge by 400% within just ten minutes.

Musk and meme coins

Elon Musk has a history of influencing cryptocurrency markets, especially meme coins.

Recently, he changed his name on X to Kekius Maximus, sparking a massive rally for a coin with the same name.

On December 31, Musk updated his X profile with the Kekius Maximus name and a PEPE meme coin profile picture, driving the coin’s price up by over 1000%.

The rally lasted two days before Musk changed his profile again, allowing many crypto traders to secure significant returns.

Musk's earlier tweets about Dogecoin also boosted its value significantly, with speculation fueled by his hints about integrating Dogecoin with Tesla and X. He even briefly changed his X profile to a Dogecoin mascot, further driving market enthusiasm.

Broader crypto market news today

The cryptocurrency market showed bullish momentum on Friday, with the global market cap rising 1.4% to $3.4 trillion.

Bitcoin reclaimed the $97,000 mark, trading at $96,630.43, up 1.30% over the last 24 hours.

Its 24-hour range was $95,231 to $97,739, with trading volumes surging 45% to $41.69 billion.

Total crypto market volume in the last 24 hours was $118.5 billion, reflecting a 19.29% increase.

Traders should exercise caution with meme coins

A lot of the time, many people may get influenced by FOMO and make investing decisions seeing such triggers from celebrities that send random tokens soaring.

Investors should approach cryptocurrency markets with caution, as their prices can be highly volatile and influenced by unpredictable factors, including public figures like Elon Musk.

For instance, Musk’s recent actions around the Kekius Maximus coins and CUMMIES, triggered a massive rally in the coins' value, only for the momentum to wane later.

While such instances may offer short-term opportunities, they underscore the speculative nature of crypto investments.

Market dynamics driven by social media or celebrity endorsements can lead to rapid gains but also sharp losses, demanding careful risk assessment.