Following Twitter's decision to rebrand its iconic blue bird logo to the letter 'X,' the crypto market experienced a frenzy of activity, with numerous 'X' tokens emerging on decentralized exchanges. Elon Musk, now at the helm of Twitter, hinted at this change in a weekend tweet, and Twitter's CEO, Linda Yaccarino, confirmed the shift on Sunday, July 23.
In Yaccarino's words, "X symbolizes the limitless potential of a new era of engagement encompassing audio, video, messaging, and even banking transactions, creating a global platform for the exchange of ideas, goods, services, and opportunities." She emphasized that artificial intelligence (AI) would be the driving force behind 'X,' connecting people in ways yet to be fully understood.
The journey towards 'X Corp' began in April 2023, when Musk incorporated Twitter into the newly formed corporation. Around the same time, he also established X.AI Corp, an AI startup, and xAI, his personal AI firm, with the ambitious goal of "deciphering the cosmos."
As news of the rebranding spread, a multitude of 'X' tokens flooded various blockchain platforms. Some tokens showcased well-thought-out plans for the future, while others seemed to be involved in pump-and-dump schemes.
One particular token saw an astonishing 1,200% surge within 24 hours, despite its associated project being abandoned in May, indicating that small-cap traders were eager to profit from any 'X' token available.
Following Musk's tweets, opportunistic developers launched new tokens, and some witnessed exponential growth. For example, a token named "AI-X," featuring a logo identical to Musk's SpaceX firm, experienced a tenfold increase. Another token called "Deus X," inspired by a Musk tweet, saw an extraordinary 2,600% upsurge.
The craze even extended to the domain market, with the Ethereum Name Service (ENS) domain "xcoin.eth" being listed at a rate of 0.69 ETH (approximately $1,300), even though it was sold earlier in the day for 1.2 ETH, nearly twice the current listing price.
James Wo, founder of DFG, a crypto fund, acknowledged the significance of meme coins in the cryptographic trading scene. He stated that when major cryptocurrencies like Bitcoin and Ether display minimal volatility, traders inevitably seek alternative opportunities. While meme trading comes with inherent risks, successful ventures can yield substantial returns, even in a bear market, albeit for a short duration.