Memecoins have once again captured the crypto world’s attention, but this time it’s not Elon Musk making headlines—it’s his father, Errol Musk.
The 77-year-old has endorsed “Musk It,” a meme-based cryptocurrency that aims to raise between $150 million and $200 million.
Launched in December by a Middle Eastern crypto firm, the token has since gained traction following Errol’s public backing.
The project joins the growing trend of celebrity-linked cryptocurrencies, a movement that has already seen figures like former US President Donald Trump attract investor interest.
Unlike established assets such as Bitcoin or Ethereum, these tokens often lack clear utility and are prone to extreme volatility.
With regulators tightening their grip on speculative crypto ventures, the long-term sustainability of “Musk It” remains uncertain.
Source: CoinMarketCap
Market risks and family tensions
Elon Musk’s influence in the crypto space is undeniable, with his tweets moving the price of Dogecoin (DOGE) and other digital assets.
Neither he nor his brother, Kimbal Musk, is involved in “Musk It.”
While Errol Musk claims to have spoken with Elon about the project, no official comment has been made by Tesla’s CEO or his representatives.
This development raises questions about how family dynamics could impact the token’s credibility.
With investors often speculating based on celebrity involvement, any perceived distancing by Elon Musk could affect market confidence in “Musk It.”
The volatility of meme coins has already been demonstrated with Trump-themed tokens, which soared before crashing when the former president distanced himself from them.
Another concern is the legal landscape.
Meme coins are often unregulated, leaving investors exposed to potential losses with little recourse.
Many of these tokens have also been linked to pump-and-dump schemes, where early backers drive up the price before selling off their holdings.
Errol Musk and his business partner, Nathan Browne, have dismissed such claims, insisting that their involvement is legitimate and not part of a short-term speculative play.
Lawsuit targets “Musk It” and Pump.fun tokens
A legal challenge could complicate the future of “Musk It.”
A proposed class-action lawsuit has been filed against Pump.fun, the platform where “Musk It” and other similar tokens are traded.
The lawsuit alleges that all tokens on the platform are “unregistered securities,” raising regulatory red flags for investors.
With nearly $500 million raised across multiple projects, the case highlights broader concerns about the risks associated with speculative meme coins.
Established cryptocurrencies like Dogecoin (DOGE) and PEPE could also face indirect market consequences if regulatory scrutiny intensifies.
The rise of celebrity-backed tokens reflects a growing trend of high-profile figures leveraging their influence in the crypto space.
As seen with previous meme coins, their value often depends on public perception rather than underlying fundamentals.
With legal uncertainties mounting and no direct involvement from Elon Musk, the long-term prospects for “Musk It” remain highly unpredictable.
The post Errol Musk-backed ‘Musk It’ meme coin eyes $200M funding appeared first on Invezz
https://invezz.com/news/2025/01/31/errol-musk-backed-musk-it-meme-coin-eyes-200m-funding/
