The ApeCoin token increases after the change of Elon Musk’s Twitter profile

The Bored Ape NFT collection has garnered a cult following since its inception in April 2021.

Jakub Porzycki | Nurphoto | Getty Images

Elon Musk Wednesday changed her profile picture Twitter to an image with various avatars from the Bored Ape non-fungible token collection, skyrocketing the price of the project’s digital token.

ApeCoin, the token launched by the creators of Bored Ape Yuga Labs, was up 19% in an hour around 8 a.m. ET to a daily high of $ 17.64 following Musk’s profile picture change. according to Coinbase data. It has since cut back on its earnings and was last trading at around $ 15.50.

It’s unclear whether Musk actually bought a Bored Ape NFT. The billionaire liked a tweet from Michael Bouhanna, an executive at Sotheby’s auction house, who said the image was “created for the sale of our Sotheby’s”.

“Happy to send you the original coined file with buyer’s approval,” Bouhanna wrote in the tweet.

It suggests that Musk may simply have it right clicked and saved the image to make her profile picture. Twitter has a dedicated feature that allows users to set their NFT as a hex display image, but Musk’s avatar is just a standard profile picture.

NFTs are meant to authenticate ownership of anything from digital art to sports memorabilia on the blockchain. But they have drawn ridicule from skeptics, as it’s easy to continue replicating and distributing associated content online without purchasing a token.

Musk, who recently agreed to a $ 44 billion Twitter purchase deal, appeared to be making fun of NFTs in a follow-up tweet.

“I don’t know … it looks a bit fungible,” the Tesla and SpaceX boss posted.

NFTs are designed not to be fungible, in other words, they cannot be exchanged interchangeably.

This isn’t the first time Musk’s activity on Twitter has led to wild movements in asset prices. Numerous tweets from the Tesla and SpaceX bosses have caused the price of bitcoin and dogecoin – Musk’s favorite “meme” cryptocurrency – to increase or decrease dramatically.

The Bored Ape NFT collection has garnered a cult-like following since its inception a year ago, with everyone from diehard cryptocurrency investors to celebrities like Jimmy Fallon buying monkey icons.

This weekend, Yuga Labs coined a collection of virtual earth acts in an upcoming “metaverse” game called Otherside. The demand for NFT, known as Otherdeeds, was high enough to clog the Ethereum blockchain, which is the foundation of the second largest cryptocurrency in the world.

This has skyrocketed Ethereum’s “gas fees”, the costs involved in approving transactions. Some users have reported having to pay commissions over $ 4,000. Yuga Labs later apologized for the debacle and said it would refund gas tariffs to users for any failed transactions.

“We’re sorry for turning off the lights on Ethereum for a while,” the company tweeted Saturday. “It seems completely clear that ApeCoin will have to migrate to its chain to scale properly.”

In a further tweet on Sunday, Yuga Labs said it was “still working on reimbursing gas to all other coiners with failed transactions.”

Despite the brief rise on Wednesday, the ApeCoin token has dropped around 17% in the past week. With a market value of $ 4.4 billion, it ranks among the top 40 digital currencies on CoinGecko.