Following SpaceX’s Starship test, space-themed tokens saw dramatic price spikes, driven by market hype, followed by sharp declines.
Following the success test of Elon Musk‘s SpaceX Starship rocket, tokens inspired by this aerospace giant have spiked so well. Although these tokens are neither approved nor affiliated with the company, their prices have significantly increased.
On October 13, 2024, SpaceX launched its 400-foot-tall Starship rocket from near the Mexican border, which marked a milestone in the company’s ongoing space exploration efforts. The rocket’s successful test flight made headlines globally and triggered some cryptocurrency market activities.
One such token is the PancakeSwap SpaceX, which has spiked by more than 5824% in the last 24 hours, and the price of the token is currently selling at $0.012192 as of the time of writing.
Similarly, another token, SpaceX, powered by Solana, spiked by over 215% within the same timeframe as the previous. However, it was unable to maintain the bullish momentum, as it has since plummeted by more than 90%, with a market capitalization of just $2,780 as of the time of writing.
That’s not all. An NFT-game token with a similar name to SpaceX’s Starship also increased by 0.7% in the last 24 hours. The price of Starship NFT is currently at $0.02141.
Elon Musk’s Influence on Digital Assets
The surge in these digital assets further shows the influence of SpaceX CEO Elon Musk in the cryptocurrency market. He has sometimes used his platform to promote tokens like Dogecoin, as he even supported a delayed space mission funded by cryptocurrency last year. Musk’s tweets or posts frequently result in double-digit gains for various cryptocurrencies, making him a notable figure in the digital currency space.
Musk provided an update to the Starship, revealing that he had just inspected the mega-rocket, which the StarShip booster has now placed into its launch mount after a flight. He mentioned that a few engines were slightly damaged from the heat but could be easily fixed.
Musk further noted that Starship is designed to be highly reusable. The goal is for the booster to return to the launch site about 5 minutes after liftoff, allowing for refueling and preparation for a new mission within an hour.
The Risks of Riding the Hype: Volatility in SpaceX-Themed Tokens
BNB Chain PancakeSwap, Solana-powered SpaceX token, and Starship NFT could have surged based on market sentiment without little or no use value attached to it. When high-profile events occur, traders often jump on the hype, hoping to capitalize on short-term gains. This explains the 5824% spike in PancakeSwap and similar increases in other SpaceX-themed tokens.
However, riding this hype can be risky, as these tokens can drop just as quickly as they rise, as seen with the Solana-powered SpaceX token, which fell by over 90% after its initial surge. Volatility like this makes it difficult for traders to predict price movements accurately.
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