"Elonomics" a cryptocurrency coin inspired by Tesla (TSLA) - Get Tesla Inc Report Founder and Chief Executive Elon Musk, often described as a Bitcoin influencer, jumped nearly 10 times late Tuesday night, according to a report by Benzinga.
Benzinga cited data from CoinMarketCap, a price-tracking website for cryptoassets.
Elonomics rewards its holders with popular stablecoin Binance USD.
Over the past 24 hours the crypto coin touched a high of $39.41 on Tuesday night. Shortly after midnight on Tuesday, the price of this Musk-themed coin touched $38.21.
The price of Elonomics dropped 85% at Wednesday's close to $5.
Benzinga described Elonomics as a rebasing token which is an elastic supply smart contract that circulates its rise and fall in supply due to changes in token price.
In July, Musk said he and his rocket company, SpaceX, hold bitcoin, a cryptocurrency he generally supports.
Last month, Tesla said that it “may in the future restart the practice of transacting in cryptocurrencies.” The disclosure came in an October quarterly filing with the U.S. Securities and Exchanges Commission.
From January to March 2021, Tesla offered customers the option to pay for electric vehicles with Bitcoin and invested $1.5 billion in Bitcoin during the first quarter of the year.
But environmental concerns hampered efforts to lock in Bitcoin as a payment method, with the cryptocurrency’s poor environmental record triggering public criticism toward the company.
Shares of Tesla closed 4.34% higher at nearly $1068 at the end of Wednesday's session. Tesla got a price-target boost from analysts at Bank of America earlier in the day. The stock has shed $200 billion in market value over the last two days.
Tesla's market capitalization crossed $1 trillion in October after the EV giant said it struck a deal with rental-car icon Hertz (HTZZ) - Get HERTZ GLOBAL HOLDINGS INC Report for an order of 100,000 electric vehicles.