Elon Musk’s father may be the next influential figure to raise funds through a memecoin amid growing interest in celebrity-backed meme tokens.
Retail investor interest returned to memecoins after President Donald Trump launched the Official Trump (TRUMP) memecoin on Jan. 18 and the Official Melania (MELANIA) token on Jan. 19 on the Solana network
Joining the ranks, Elon Musk’s father, Errol Musk, is reportedly looking to launch his own memecoin token project called Musk It (MUSKIT).
Musk’s father hopes to raise as much as $200 million from the memecoin project, which he plans to use to support a for-profit think tank called the Musk Institute, he told Fortune.
The Musk It token was silently launched on Dec. 12, 2024, by a Middle Eastern cryptocurrency company.
MUSKIT/USD, all-time chart. Source: CoinMarketCap
However, the token failed to gain significant traction, shedding over 52% of its value since launch, to trade at $0.02 with a $25 million market capitalization as of 7:58 am UTC, CoinMarketCap data shows.
The senior Musk specified that his son, Elon, was not involved with the meme token project.
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Musk It token may have limited potential without Elon Musk’s endorsement
The Musk It token may not be able to rise to the success of the Trump family’s memecoins.
Despite Musk’s name offering significant clout, the project may have a limited upside without Elon Musk’s direct endorsement, according to Anndy Lian, author and intergovernmental blockchain expert.
Lian told Cointelegraph:
“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.”
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Still, investors will likely continue seeking out memecoins with significant return potential, which are the “lottery tickets of the digital world,” said Lian, adding:
“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.”
Interest in memecoins often returns after a crypto market dip, as investors seek the next significant investment opportunity, despite an intrinsic lack of utility behind memecoins, which often causes significant downside volatility.
Still, some traders can successfully navigate the volatility of meme tokens.
On Dec. 14, a savvy crypto trader turned $27 into $52 million by capitalizing on the Pepe (PEPE) memecoin rally. The unknown trader has held his initial investment for over 600 days.
Savvy Hyper trader, selling patterns. Source: Lookonchain
On Jan. 6, another trader turned $2,000 into $3.2 million in 10 hours, making an over 1,500-fold return on investment on the Hyperfy (HYPER) metaverse token.
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