Elon Musk’s Father Launches Memecoin—But Can It Succeed?

The father of Elon Musk, Errol Musk, is reportedly entering the celebrity-backed memecoin market, launching Musk It (MUSKIT) in an attempt to raise $200 million for a for-profit think tank called the Musk Institute.

The Musk It token was silently launched on Dec. 12, 2024, by a Middle Eastern cryptocurrency company, but has struggled to gain traction in the memecoin space.

As of 7:58 AM UTC, the token is down 52% from its launch price, currently trading at $0.02 with a $25 million market cap, according to CoinMarketCap data.

Trump Memecoins Ignite Celebrity Crypto Craze

The return of retail interest in memecoins was largely sparked by President Donald Trump’s Official Trump (TRUMP) token, launched on Jan. 18, and Melania Trump’s Official Melania (MELANIA) token, launched a day later.

These Solana-based tokens have generated massive speculation and trading volume, inspiring other public figures to launch similar projects.

However, Musk It (MUSKIT) may struggle to replicate the Trump family’s success.

Lack of Elon Musk’s Endorsement Hurts Prospects

Despite the Musk name carrying global recognition, Errol Musk has clarified that Elon is not involved in the project.

This could be a major hurdle, as crypto and memecoin analyst Anndy Lian pointed out:

“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.”

Indeed, Elon Musk’s Twitter endorsements have historically propelled Dogecoin (DOGE) and other meme tokens to massive gains, but without his backing, MUSKIT may struggle to attract attention.

The Memecoin Craze Continues

Despite its inherent volatility and lack of utility, the memecoin market remains highly active, often experiencing bullish runs after broader crypto market dips.

Memecoins have been dubbed the “lottery tickets of the digital world,” as some investors see them as opportunities for massive overnight gains.

Some traders have mastered the art of memecoin speculation:

• On Dec. 14, a trader turned $27 into $52 million by riding the PEPE memecoin rally.
• On Jan. 6, another trader transformed $2,000 into $3.2 million in just 10 hours, netting a 1,500x return on Hyperfy (HYPER).

With new memecoins launching daily, investors continue to chase the next big win—but whether Musk It will be one of them remains to be seen.

Will Musk It Succeed?

While celebrity-backed memecoins have gained traction, Musk It faces serious challenges:

• Lack of Elon Musk’s direct endorsement could limit interest.
• Trump’s memecoins dominate market attention, leaving little room for competitors.
• MUSKIT’s weak launch performance raises doubts about its long-term viability.

Unless Errol Musk finds a way to generate hype or secure a strategic partnership, MUSKIT may struggle to stand out in the crowded memecoin space.