The Milady non-fungible token (NFT) collection has gained significant traction after receiving recognition from Twitter owner Elon Musk, drawing similarities to Musk’s influence on dogecoin (DOGE). Miladys are profile-pic (PFP) NFTs consisting of 9,823 images showcasing wide-eyed, childlike faces. However, the collection’s creator, known as Charlotte Fang, Charlie Fang, or Charlemagne, has faced controversy over conspiracy theories and slurs.
Musk’s tweet, which featured a Milady NFT and the caption, “There is no meme, I love you,” caused the collection’s prices to surge by up to 60%. Shortly after, the collection rose to the top of NFT marketplace OpenSea, with NFTs valued at $13,700 worth of ether (ETH) at their peak. OpenSea data revealed a tenfold trading volume increase in the last 24 hours, reaching over 12,000 ether or over $22 million.
This situation draws parallels to Musk’s impact on tokens such as dogecoin (DOGE), which have experienced substantial price fluctuations following his tweets. For example, in May 2021, after Musk revealed collaboration with Dogecoin developers, the token’s value rose by 22% instantly. Similarly, dogecoin surged by 33% in December 2021 after Musk announced that Tesla (TSLA) would accept the token as payment for merchandise.
However, it is essential to note that these price jumps caused by Musk’s tweets tend to be short-lived, as traders and automated systems rush to buy the mentioned tokens and sell them for profit in the following days. This pattern is usually visible as a short-term spike followed by a gradual sell-off.
Milady NFTs may experience a similar trading pattern in the coming days. Despite the high trading volumes, prices have already corrected by 7% compared to Thursday, suggesting that a sell-off could already be in progress.
While the attention brought to Milady NFTs by Elon Musk’s tweet has undoubtedly generated excitement and price surges, the history of short-lived spikes in token values following Musk’s tweets raises some skepticism. The controversy surrounding the creator and the project adds another layer of uncertainty, with the potential for the current trading action to follow the same pattern as dogecoin and other tokens influenced by Musk. As the market responds to these factors, only time will tell if the Milady NFT collection can sustain its newfound popularity and valuation.
Source: Coindesk
