Milady NFTs, the popular digital art collection, experienced a rollercoaster ride as prices retraced following a tweet of Elon Musk that initially sent them soaring. During May, the Milady collection captured the interest of Elon Musk as he shared a tweet featuring an image of a Milady avatar adorned with the heartfelt message, “There is no meme, I love you.”
This endorsement caused the NFT prices to skyrocket by as much as 200%, reaching a peak value of $13,700 value of ether (ETH) per NFT, media reports ,said.
However, the euphoria was short-lived as the gains quickly reversed. OpenSea analytics data reveals that the prices of Milady NFTs have now returned to their pre-Musk tweet levels, dropping on Thursday to 3.2 ether per NFT. This price retracement mirrors the pattern observed with dogecoin (DOGE), another cryptocurrency favored by Musk. Whenever Musk mentions dogecoin on Twitter, its price experiences a temporary surge, followed by a gradual decline as traders and automatic bots seize the opportunity to trade for a profit.
The phenomenon of Musk’s tweets influencing the market is not exclusive to cryptocurrencies. Milady NFTs became the latest victim of this trend, with prices initially propelled by Musk’s recognition and subsequently affected by profit-taking. The swift rise and fall in prices highlight the speculative nature of the market and the influence that influential figures like Musk can have on investor sentiment.
Despite the retraction in prices, it is worth noting that the top holders of Milady NFTs are still sitting on unrealized profits worth millions of dollars. The volatile nature of the market means that fortunes can change rapidly, and investors need to carefully navigate these fluctuations.