Errol Musk, father of billionaire entrepreneur Elon Musk, announced plans to launch a meme coin named “Musk It,” aiming to raise between $150 million and $200 million.
Meme coins, which often lack intrinsic value and are driven by online hype, have seen a surge in popularity. “Musk It” comes amid a flurry of controversial meme coins over the past several weeks, raising concerns within the crypto industry and beyond.
Errol Musk’s Meme Coin with Big Goals
While Elon Musk has frequently influenced crypto markets, particularly Dogecoin (DOGE), he has never officially launched a token of his own. However, according to Fortune, his father, Errol Musk, believes his meme coin could be a game-changer.
Errol Musk and his business partner, Nathan Browne, intend to use the funds from the Musk It project to support the newly established Musk Institute, a for-profit think tank focused on scientific innovation. While Errol Musk claims his initiative is independent of his son, many investors will likely associate the token with the CEO of Tesla and SpaceX.
“If the Musk family is involved, you know it’s going to be a RIDE,” one user on X quipped.
A Middle Eastern-based crypto company originally launched the token in December. However, it failed to gain traction until Errol Musk publicly endorsed it, insisting it is not a “pump-and-dump” scheme. Nevertheless, the lack of transparency has raised concerns, with little information about the Musk It meme coin’s structure.
This is unlike most cryptocurrency projects, which release detailed tokenomics explaining funding allocation and distribution. Notwithstanding, data on CoinGecko shows Musk It meme coin’s market capitalization approaching $27 million as of this writing.
Errol Musk’s relationship with his son has been widely reported as strained. Walter Isaacson’s biography of Elon Musk, released in 2023, describes Errol as a “charismatic fantasist” who deeply affected Elon’s childhood.
The book also claims that their relationship deteriorated after Errol fathered a child with his stepdaughter, leading Elon’s brother, Kimbal, to sever ties. While Errol Musk refutes these claims, his decision to launch a token bearing the family name could deepen the divide.
The Rise of Controversial Meme Coins
Meanwhile, Musk’s launch follows a recent wave of politically and celebrity-driven meme coins, including TRUMP and MELANIA. The rise of such tokens has drawn political scrutiny, with Democrats calling for an ethics probe into Donald Trump’s involvement in crypto.
In the same tone, Massachusetts Senator Elizabeth Warren has advocated for increased regulatory oversight on politically affiliated tokens. Elon Musk’s role leading D.O.G.E, the Trump administration’s Department Of Government Efficiency, could draw Musk It to the purview.
These concerns come after TRUMP token investors have fallen victim to rug pulls. BeInCrypto reported that scammers created hype before draining liquidity and abandoning the project. Ivanka Trump recently warned against a fraudulent meme coin using her name for the same reasons.
“It has come to my attention that a fake crypto coin called “Ivanka Trump” or “$IVANKA” is being promoted without my consent or approval. To be clear: I have no involvement with this coin,” the post read.
A recent report from blockchain analytics firm Chainalysis reported that just 40 wallets hold 94% of TRUMP and MELANIA tokens, raising concerns over market manipulation. Meanwhile, Cathie Wood of ARK Invest dismissed the hype surrounding recently launched Trump-branded meme coins.
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