XAI Meme Coin Takes a Hit as Elon Musk Denies Token Connection

Meme coin XAI has seen a significant drop in its value and trade volume following recent statements from billionaire tech founder Elon Musk. As previously reported, Musk, in a recent tweet on X – formerly Twitter – stated that none of his companies will ever create a crypto token.

Notably, Musk’s tweet came in reaction to growing speculation about his relationship with a booming memecoin, XAI. The meme coin’s name is akin to xAI, an artificial intelligence startup that Musk owns. As a result, crypto experts warned users could assume the company owned the token.

CoinMarketCap data shows XAI has struggled to exit the red zone since Musk made his statement. At the time of press, the token was down 12.73% in the last seven days. Similarly, XAI lost over 8% of its price in the past 24 hours.

Meanwhile, this is not the first time Musk has ruled out the possibility of him or any of his businesses launching a crypto token. Earlier in August, Musk made a similar comment when he stated that X would never launch a crypto token. The speculations then came following rumors that the billionaire could integrate Dogecoin as a payment option on the platform.

Furthermore, the billionaire founder has previously revealed he holds Bitcoin, Ether, and Dogecoin. Similarly, his company, Tesla, holds around $184 million worth of digital assets, as revealed during the company’s last quarter report. Elsewhere, Dogecoin – a memecoin commonly associated with Musk – has regained its composure following a drop that came after the billionaire’s statement. The token has gained 1.74% in the past 24 hours and is currently exchanging hands at $0.07352 at the time of press.