David Edwards
Elon Musk’s father, Errol Musk, is set to be the latest high-profile figure leveraging the growing memecoin trend, aiming to raise $200 million through his own cryptocurrency project, Musk It (MUSKIT).
Memecoin Madness Picks Up Speed
US President Donald Trump’s introduction of the Official Trump (TRUMP) and Official Melania (MELANIA) tokens on the Solana blockchain in mid-January recently stoked a renewed interest in memecoins among retail investors. In light of this growing trend, Errol Musk has declared his intention to use the Musk It coin to finance the Musk Institute, a for-profit think institution.
Reports state that Musk On December 12, 2024, a cryptocurrency corporation from the Middle East first introduced it. But in spite of its powerful branding, the token has had trouble gaining traction and has lost more than 52% of its value since debut. According to CoinMarketCap data, it was trading at $0.02 at 7:58 AM UTC, with a market capitalization of $25 million.
Growth Could Be Restricted by Elon Musk’s Lack of Support
Despite Errol Musk’s aspirations, the token’s success may be hampered by Elon Musk’s lack of direct involvement. Author and blockchain specialist Anndy Lian voiced doubts about Musk. It has the ability to duplicate Trump’s family-backed memecoins’ level of success.
“I’m not so sure ‘Musk It’ will hit the heights some Trump family memecoins have reached. It feels like Elon’s personal stamp is what really gets people excited about these projects,” Lian told Cointelegraph.
In the past, memecoins have prospered due to the support of the community and well-known endorsements. It might have trouble gaining traction without Elon Musk’s express backing.
Memecoins: Crypto’s “Lottery Tickets”
Memecoins continue to draw investors looking for high-return opportunities despite their inherent volatility. As traders look for the next big investment, Lian underlined that demand in these speculative assets frequently surges following market downturns.
“As for this whole meme coin craze, I think it’s more than just a Trump thing. It seems like we’re all hungry for that next big hit in crypto, looking for something that could skyrocket overnight,” he added.
The potential for enormous gains from memecoins is demonstrated by recent success stories. On December 14, a trader took advantage of the Pepe (PEPE) memecoin boom and made $52 million off a $27 investment. Similarly, on January 6, another investor speculated on the Hyperfy (HYPER) metaverse token and in just 10 hours, turned $2,000 into $3.2 million.
As Musk It has an uphill struggle because the memecoin market as a whole is still developing due to speculative trading and excitement generated by celebrities.
