Elon Musk has once again sent the crypto world into a frenzy — this time by simply changing his X handle to ‘Kekius Maximus’ on New Year’s Eve. Within hours, the obscure meme coin of the same name skyrocketed in value by an eye-watering 4,800%, pushing its market cap to a staggering $380 million.
Meme coins — cryptocurrencies inspired by internet jokes, cultural trends, and viral moments — have become a massive part of the digital finance space. From Dogecoin to Shiba Inu, these coins often see dramatic spikes before inevitably crashing. But despite their volatility, some investors are making ridiculous amounts of money.
Elon Musk at the Crypto.com Arena in LA (Getty Images)
The meme coin market exploded in 2024, jumping from $20 billion in January to over $120 billion by the end of the year. Big-money players aren’t ignoring the trend either. Investment funds like Stratos, backed by Andreessen Horowitz, have dived in headfirst.
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Talking to New York Post, Stratos partner, Laurent Parmentier, said: “I think we are only going to see more and more sophisticated investors… crypto is the best performing asset class in the world and meme coins have been the best performing subsection”.
Even compared to high-flying stocks like Nvidia, meme coins can generate far bigger returns — if you pick the right one.
“Nvidia returns pale in comparison to returns if you’re early in some meme coins… we made 300x our money,” Parmentier added.
An example of the meme coin madness is how one lucky investor, reported by Cointelegraph, turned a mere $66 into nearly $3 million thanks to Kekius Maximus. They cashed out $201,000 and held onto the rest, hoping for even bigger gains.
But for every winner, there are plenty of losers. The infamous “$HAWK Token,” based on viral sensation Hailey Welch who you might know better as 'Hawk Tuah Girl', surged to $490 million on launch day before plummeting to just $39,760. The project is now under SEC investigation, and investors are furious.
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Besides her above statement she posted on X soon after, which seems very heavy in legalese, Welch has been silent across social media since late December 2024.
Crypto analyst Toe Bautista warns that most meme coin bets are pure speculation. However, he acknowledges their role in engaging new investors.
Bautista said: “When Bitcoin goes up, meme coins further down [the chain, with more risk] go up,”.
“Investors are curating what they think the future looks like… the capital is chasing it.”, he added.
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Despite skepticism, meme coins are becoming more entrenched in mainstream culture. The largest recent testament to that fact is Elon Musk and Vivek Ramaswamy’s launching of the Department of Government Efficiency (DOGE), a cheeky nod to Dogecoin, cementing its place in political and financial discussions.
As digital culture evolves, some experts believe AI-powered meme coins could take things to the next level. The AI-generated coin GOAT, for example, hit a market cap of $800 million just weeks after launch.
Courtland Leer, Founder of Plastic Labs, commented on the rise of meme coins. He said: “Capital follows attention,” before adding, “Something sticks and it becomes the seed for the next cycle.”
Whether meme coins are the future of finance or just another bubble waiting to burst, one thing is certain — when Elon Musk gets involved, expect chaos in the crypto world.