The meme coin BOB experienced a significant drop of 45% in its price following allegations made by Elon Musk, CEO of Tesla and SpaceX, against a Twitter bot account associated with the coin. Musk labeled the account, called “Explain This Bob,” a “scam crypto” and it was subsequently suspended. The account, powered by artificial intelligence (AI), provided explanations and responses on a variety of topics, including cryptocurrencies. Musk’s accusations created negative sentiment and led to a sharp decline in the value of BOB.
Elon Musk raises concerns over potential crypto scam, account faces possible suspension:
Prices of @BobEthToken tanked as Elon Musk-owned Twitter suspended its popular @ExplainThisBob automated bot, despite @elonmusk previously engaging with the account. By @shauryamalwa.https://t.co/ZrKiqJh7cR
— CoinDesk (@CoinDesk) June 19, 2023
The AI-powered Twitter bot’s suspension occurred shortly after Musk’s public accusation. The account had gained popularity for its humorous and informative content. In response to Musk’s tweet, the bot clarified that BOB is not a scam but a decentralized memecoin with no tax and no contract ownership. BOB drew inspiration from Dogecoin, another popular cryptocurrency associated with internet memes.
The consequences were immediate and severe. BOB prices dropped from $0.000031 to $0.000016 within hours, resulting in a market capitalization of only $13 million. This was a significant decrease from the coin’s previous peak capitalization of $74 million in early May.
As traders and investors reacted to Twitter’s actions, panic ensued, intensifying BOB’s downward spiral. The once-promising meme coin suffered a loss of trust and confidence, tarnishing its reputation within the cryptocurrency community.
Currently, BOB is priced at $0.00001888, representing an 11.82% decrease in the last 24 hours. Its market cap is $12,964,608, and its 24-hour trading volume is $20,399,549.
BOB holds the rank of 2621 on CoinMarketCap, indicating its position among other cryptocurrencies. It has a circulating supply of 690,000,000,000 BOB coins, with a maximum supply equal to the circulating supply. Considering there are no additional coins to be issued, the fully diluted market cap of BOB remains at $12,964,608.
The incident involving BOB and Elon Musk underscores the influence that influential figures, like Musk, can have on cryptocurrency markets. Musk’s comments and tweets have previously impacted the prices and perception of various cryptocurrencies. Meme coins, in particular, are highly volatile and susceptible to market fluctuations caused by external factors, including public statements from prominent individuals.
