Elon Musk, the enigmatic billionaire known for his unpredictable online antics, has once again proven his influence on the cryptocurrency market. This time, the Tesla CEO’s brief interaction with a Pepe-inspired meme coin, Kekius Maximus (KEKIUS), caused a meteoric rise and a dramatic drop, leaving traders stunned.
A spike on New Year's Eve
The drama began when Musk changed his Twitter name to “Kekius Maximus,” a nod to the AI-generated meme depicting the internet’s favorite Pepe the Frog as a majestic emperor. The meme, created using Twitter’s AI tool Grok, had been shared by Musk earlier, generating considerable buzz among his large following.
KEKIUS, which quietly launched on the Ethereum blockchain with a modest $1.7 million market cap on December 27, saw its fortunes change overnight. Musk's reference to the meme, along with the announcement that his "Path of Exile" character would have the same name, sparked a 1,300% surge to $20 million.
When Musk updated his Twitter profile picture and name to “Kekius Maximus” on New Year’s Eve, the meme coin’s value skyrocketed. Investors piled in, sending KEKIUS to a staggering $400 million market cap, a 3,000% increase in just 30 hours.
Fall begins
But that excitement didn’t last long. On January 1, news broke of a tragic explosion involving a Tesla Cybertruck outside the Trump Hotel in Las Vegas. The explosion, which law enforcement is now investigating as a possible act of terrorism, claimed the life of the driver.
Musk quickly restored his Twitter page to normal, focusing on the incident. “The entire senior Tesla team is currently investigating this,” Musk tweeted, later clarifying that the explosion was caused by large fireworks or a bomb in the back of the truck and had nothing to do with the vehicle itself.
This sudden shift in Musk’s focus sent KEKIUS investors into a panic. Within hours, the coin’s value plummeted 67%, from its peak of $400 million to $95 million. Over the next 10 hours, it would lose another 83%, leaving many who had bought in at the top with significant losses.
A controversial shift in focus
Since the explosion, Musk has not mentioned Kekius Maximus. Instead, he has turned his attention to British politics, advocating for the release of far-right activist Tommy Robinson, who is being held for contempt of court. Musk has also voiced his support for Reform UK, a British political party with controversial policies.
The Elon Musk Effect
The story highlights Musk’s dual influence on digital assets. While his endorsements can put obscure coins in the spotlight, they also expose investors to extreme volatility. KEKIUS’s sudden collapse is a stark reminder of the risks involved in chasing meme coin hype fueled by celebrity endorsements.
As Musk turns his attention to addressing real-world crises and political causes, the KEKIUS craze sinks into another chapter of the unpredictable “Elon Musk effect” in the cryptocurrency market.