X-inspired coins pump and dump as Elon Musk revamps Twitter
- Since Twitter's rebranding to X, several projects have come up, pumping and dumping as they pedal the ticker X.
- Among them, AI-X, X-Coin, and X token have recorded massive pumps and dumps, causing concern.
- The incident underscores the need for thorough research and due diligence before investing in a cryptocurrency.
X is the current euphoria in the crypto landscape after Twitter CEO Elon Musk's recent move to rebrand the giant social media platform to X. Following the announcement, multiple coins have emerged, pedaling the X ticker with hopes of rallying on the hype.
Also Read: Shiba Inu price rises on speculation of Elon Musk's Twitter moves.
X coins pump and dump amid Twitter rebrand hype
X coins have dominated the market after Twitter CEO Elon Musk decided to rebrand the social media platform to X. As investors chase the Fear Of Missing Out (FOMO), some of these tokens have recorded massive gains.
— Elon Musk (@elonmusk) July 24, 2023
Musk said, "X could become half of the global financial system." His optimism fueled massive rallies for tokens with the "X" ticker symbols as they speculated about the platform's potential impact on the financial world.
Elon Musk says if done right, X could become 'half of the global financial system'.pic.twitter.com/dO6XNlLzvO
— The Spectator Index (@spectatorindex) July 24, 2023
With the tokens' rise in value, skeptics and optimists must remain vigilant to avoid falling victim to swindles, pumps, and dumps.
Speaking to Coindesk, some experts have attributed the emergence of these bogus coins to the dormancy in Bitcoin (BTC) and Ethereum (ETH) prices, which were stuck within range for some time. The low volatility left traders and investors susceptible to promising alternatives offering more volatility.
Citing crypto fund DFG founder James Wo:
While the biggest currencies like bitcoin and ether have very low volatility, it's only natural that traders will look for opportunities elsewhere.
It is also worth mentioning that low market cap projects were doing well during Bitcoin's muted moment, also leaving investors vulnerable to enticement.
With this, it is imperative to note that the crypto arena is full of bad actors willing to take advantage of unsuspecting investors. For this reason, one must never trade based on hype and blindly look at potential gains. Thorough research is key while maintaining cognizance of the highly volatile nature that is characteristic of crypto.
(This story was corrected at 03:40 GMT to remove part of its content about some specific X-related tokens listed on DEXTools. The content was removed as FXStreet could not independently verify the legitimacy of these tokens.)
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Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
