- The Elon Musk Effect has hit the NFT scene.
- The price of Milady NFTs quadrupled on the back of a Tweet, but not for long.
- Prices for the NFTs are back where they were, and even worse.
The Elon Musk effect has been seen numerous times in crypto, especially whenever the Tesla CEO Tweets about Doge. However, an obscure NFT got the treatment recently.
Following a Tweet by Musk, which contained the Milady Maker avatar, the price of the Milady NFT collection spiked and has since quickly retracted.
The NFTs were trading around 3.4 ETH each before Musk’s influence saw them surge as much as 400%, with the Milady NFTs fetching as much as $13,700 worth of ETH at the height.
NFT Pump and Dump
The Tweet in question, which sent the price of Milay NFTs skyrocketing, came on May 10. It featured a Milady image with a meme-text overlay. The NFT project has been around since August 2021 but quadrupled in floor price since March 30, 2023, with Musk’s seemingly unintended help.
Additionally, and typical of Musk’s mysterious influence, unrelated LADYS token also got the pump treatment and spiked over 1,100 percent, reaching a market capitalization of over $120 million.
What Goes Up…
As expected, the hype and excitement around Milady’s NFTs have fallen sharply. The NFTs are now back at prices before Musk’s influence, with OpenSea showing a drop as low as 3.2 ETH – lower than before the Tweet.
Likely, holders of the NFTs pre-Musk’s Tweet have quickly sold off their artwork for a handsome sum and taken the profits, which would drive the price back down.
On the Flipside
- Musk has been a big backer of Dogecoin and helped get the meme coin to record highs. However, he has also said people should not ‘bet the farm on Doge,’ indicating that going fully into the coin would be dangerous.
Why This Matters
The Musk effect is well known as people look to his Tweets to point them toward a coin, or NFT, pump. However, these are never long-lived and do not make for wise or long-term, investments.
Read more about Musk’s views on Doge:
Elon Musk Warns Dogecoin Fans: “Don’t Bet the Farm on DOGE”
Read more about the ongoing battle between the SEC and Coinbase:
Coinbase Condemns SEC and Gensler for ‘Not Conducting Rulemaking’ for Crypto