LUIGI hits all-time high at $60M market cap after Luigi Mangione’s arrest for murder

Luigi Inu, a memecoin inspired by Luigi Mangione, has hit a new all-time high by market capitalization, reaching $60 million. This market movement is in conjunction with the Pennsylvania police taking Mangione in custody for the murder.

The Luigi Inu (LUIGI) token first started gaining traction following Mangione’s arrest in Altoona, Pennsylvania and charged on Dec 9. The token’s market cap reached $29 million before it rocketed higher to $60 million, after the arrest was confirmed. Originally launched by anonymous crypto traders, the token is trending on Raydium, the automated market maker built on Solana. 

The connection between Mangione and the memecoin lies in the fact that his arrest and the subsequent media attention have significantly boosted the token’s popularity and value. 

Who is Luigi Mangione?

According to police, Luigi Mangione, is connected to the “premeditated and pre-planned attack” killing of Brian Thompson, the CEO of UnitedHealthcare, in Manhattan. Surveillance footage also captured Luigi Mangione exiting the vicinity shortly after the gunfire erupted. Mangione also published a manifesto about disparaging things about corporate America, which added fuel to the virality of the memecoin. 

The problem with hype-based memecoins like LUIGI

In the wake of recent market activity, numerous new-cycle memecoins have disappointed with their inability to break all-time highs, leaving many to question the “memecoin supercycle” a phrase championed by Murad Mahmudov at September’s Token2049 conference. As meme tokens inspired by hysteria potentially cross the line between tragedy and speculation, experts caution that there are dangers in playing with such whiff-of-miracle assets. “What a lot of people have chosen to do with financial freedom is gamble..it shows an overall market immaturity” said Matthew Ruley, a content director of a crypto education platform.

These tokens, like LUIGI, exploit the fear of missing out using viral narratives about wealth, which become appealing much like sports betting. However, they lack the fundamental value and stability of traditional assets, making them highly volatile and risky investments, believes Alex Beene, Financial Literacy Instructor at University of Tennessee.

“Typically rises in the value of a memecoin pertaining to a viral story or trend aren’t this gruesome, not to mention centering on criminal activity. Even if the flurry of buying activity is being done more out of novelty for the moment than as a sign of support, it definitely doesn’t speak highly to some in the crypto community” comments Beene on LUIGI memecoin.

Many netizens are trading the LUIGI token, with some actively supporting the alleged idea of anti-establishment, which Mangione is said to envision. However, many within the crypto community also condemn the incident and seek justice for the victim. A new token called $BRIAN has also surfaced, which aims to bring justice to Brian Thompson.