Crypto investors are increasingly drawn to celebrity-endorsed tokens. Errol Musk, Elon’s father, is the latest figure to join this movement. He aims to raise $200 million with the MUSKIT meme coin, which has already seen a positive price reaction. Meanwhile, the new meme project Solaxy (SOLX) is experiencing significant presale success, having raised nearly $17 million before its official launch.
Errol Musk is making headlines with his $200 million fundraising goal for a think tank through his new crypto venture, Musk It (MUSKIT). Leveraging the family name, the Musk It coin was initially introduced by a Middle Eastern crypto firm in December to support the Musk Institute. This for-profit think tank, led by Errol and business partner Nathan Browne, is set to focus on projects like flying vehicles and scientific research. Despite the surge of over 200% in MUSKIT’s value after the announcement, it has since dropped to around $0.065. Elon Musk is not involved in the venture and has distanced himself from his father’s business endeavors.
Concerns are mounting about the MUSKIT coin’s structure and potential risks, with market analysts and traders expressing worries over the lack of transparency regarding its supply and ownership. Reports suggest that Errol Musk’s new company might control up to 80% of the supply, raising suspicions of a possible rug pull. The branding is also under scrutiny for its heavy reliance on imagery associated with Elon’s companies, despite his lack of involvement, leading some to view it as misleading. The concept of celebrity-backed meme coins itself often involves substantial initial gains followed by heavy losses for late investors. A trader on Twitter even predicted that it will “drop to zero” soon. The future of MUSKIT remains uncertain as it faces these challenges, raising questions for retail investors.
On the other hand, Solaxy is making strides with over $16.6 million raised in its presale and endorsements from multiple analysts. Touted as Solana’s first Layer-2 scaling solution, Solaxy aims to alleviate Solana’s congestion issues by processing transactions off-chain before settling them on the mainnet. This innovation could be significant, especially amidst recent network strains from meme coin trading. The SOLX token, available in presale, powers Solaxy’s Layer-2 system, with experts suggesting it might be a wise investment. While MUSKIT’s future is clouded by transparency concerns, Solaxy seems to be building something of real value.