Errol Musk Launches Crypto Token Amid Memecoin Craze
Errol Musk, the father of billionaire entrepreneur Elon Musk, is reportedly entering the cryptocurrency space with his own memecoin project, ‘Musk It’ (MUSKIT). He aims to raise up to $200 million through the initiative to support a for-profit think tank, the Musk Institute, according to statements made to Fortune.
The Musk It token was initially launched on 12 December 2024 by a Middle Eastern cryptocurrency firm. However, despite its high-profile branding, the token has struggled to gain traction, plummeting over 52% in value since launch. As of 7:58 am UTC, data from CoinMarketCap shows it trading at $0.02, with a market capitalisation of $25 million.
Elon Musk Not Involved in the Project
Despite sharing his surname with one of the most influential figures in tech and finance, Errol Musk clarified that his son, Elon Musk, has no involvement in the Musk It project.
This distinction may limit the token’s potential success, as market experts suggest that Elon Musk’s direct endorsement is often a key driver of hype and adoption for crypto-related projects.
Memecoin Market Gains Momentum
The launch of Musk It follows a surge in interest in celebrity-backed memecoins. Retail investors have returned to this volatile sector after former US President Donald Trump introduced the Official Trump (TRUMP) memecoin on 18 January, followed by the Official Melania (MELANIA) token on 19 January, both on the Solana network.
Anndy Lian, blockchain expert and author, believes Musk It may struggle to reach the heights of Trump-related tokens without Elon Musk’s personal backing.
“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 stated.
Memecoins: A High-Risk, High-Reward Gamble
Memecoins have become the “lottery tickets of the digital world,” according to Lian, as investors continue searching for the next big hit in crypto. The market often sees renewed interest following downturns, as traders seek opportunities for rapid gains despite the inherent lack of utility behind most memecoins.
While many memecoins suffer from extreme volatility, some traders have successfully navigated the market’s ups and downs. On 14 December, a crypto investor reportedly turned a $27 investment into $52 million by capitalising on the Pepe (PEPE) memecoin rally. Another trader turned $2,000 into $3.2 million in just 10 hours on 6 January, making a staggering 1,500-fold return on the Hyperfy (HYPER) metaverse token.
Future Prospects for Musk It
Despite Errol Musk’s ambitious fundraising goals, industry analysts remain sceptical about Musk It’s long-term potential. Without Elon Musk’s endorsement, the token may struggle to sustain investor interest in the highly speculative memecoin market.
Nevertheless, the ongoing memecoin craze indicates that investors remain eager for high-risk, high-reward opportunities. Whether Musk It can capitalise on this trend or fade into obscurity remains to be seen.