Luigi Inu, a memecoin inspired by Luigi Mangione, has reached a new all-time high in market capitalization at $60 million. This market move is tied to Pennsylvania police taking Mangione into custody for the murder.
The Luigi Inu (LUIGI) token first started to gain traction after Mangione’s arrest in Altoona, Pennsylvania and was charged on December 9. The token’s market cap reached $29 million before skyrocketing to $60 million after the arrest was confirmed. Originally launched by anonymous crypto traders, the token is popular on Raydium, the automated market maker built on Solana.
The connection between Mangione and the memecoin lies in the fact that his arrest and subsequent media attention significantly increased the token’s popularity and value.
Who is Luigi Mangione?
Police say Luigi Mangione is connected to the “premeditated and pre-planned attack” murder of UnitedHealthcare CEO Brian Thompson in Manhattan. Surveillance footage also shows Luigi Mangione leaving the area shortly after the gunfire broke out. Mangione also published a manifesto disparaging corporate America, further fueling the memecoin’s virality.
The problem with hype-based memecoins like LUIGI
In the wake of recent market activity, numerous new cycle memecoins have been disappointed with their inability to break all-time highs, leaving many to question the “memecoin super cycle,” a phrase championed by Murad Mahmudov at the Token2049 conference in September. As hysteria-inspired meme tokens potentially cross the line between tragedy and speculation, experts warn there are dangers in playing with such miracle cures. “What many people with financial freedom have chosen to do is gamble. It shows a general immaturity of the marketsays Matthew Ruley, content director of a crypto education platform.
These tokens, like LUIGI, tap into the fear of missing out through viral stories of wealth, becoming as attractive as sports betting. However, they lack the fundamental value and stability of traditional assets, making them highly volatile and risky investments, says Alex Beene, Financial Literacy Instructor at the University of Tennessee.
“Normally, increases in the value of a memecoin related to a viral story or trend aren’t that heinous, not to mention highlighting criminal activity. Even if the surge in buying activity right now is done more out of novelty than as a sign of support, it certainly doesn’t bode well for some in the crypto community.” comments Beene on LUIGI memecoin.
Many internet users are trading the LUIGI token, with some actively supporting the alleged anti-establishment idea that Mangione is said to have in mind. However, many within the crypto community also condemn the incident and seek justice for the victim. A new token has also surfaced called $BRIAN, which aims to bring justice for Brian Thompson.
