Dogelon Mars (ELON-USD), a ‘pupcoin’ inspired by both Dogecoin (DOGE-USD) and Elon Musk’s involvement with it, remains on the radar of many meme-coin speculators. Although the Tesla (NASDAQ:TSLA) chief executive officer has no involvement with it, its token price can see big price spikes when Musk makes headlines. For example, last month, when Musk made his deal to buy Twitter (NASDAQ:TWTR), the coin briefly soared on the news only to pull back.
However, as a quick trade, ELON-USD has been a bad investment for the most part. If you got in at its debut, or after the May 2021 “crypto crash,” you may still be ahead. If you sold out during its turbocharged rally last October, you are ahead by a wide margin. But what if you got in at any other time? You’re likely sitting on, or have realized, big losses. Still, if you are currently not “HODLing” it, you may still think the also-ran pupcoin is now at a great entry point.
Buying now, you may believe there is opportunity to profit big. Maybe from the next bit of Musk-related news, despite Musk news relating little to the prospects of this token. Or, from a crypto market recovery, the tide of which raises the boats of not just the established coins and altcoins, but the “jokecoins,” like this one, as well. However, buying Dogelon Mars for these reasons could still result in disappointment even if you’re buying it more as a lottery ticket rather than a serious position in your portfolio.
Buying it in the hopes of another Musk-fueled spike is hardly a slam-dunk path to trading profits. I’m not saying that there won’t be another Musk spike. Far from it, as even something as indirect as Twitter adopting crypto primitives could give dog-themed cryptos a boost. So, what’s the problem? Assuming it stays on a downward trajectory between now and the next Musk boost, ELON-USD could head lower. The next spike may, at best, only bring you back to even instead of ahead.
Why am I assuming it’s going to continue trending lower? The crypto market is in a tough spot right now. It’s hard to see it being on the verge of bottoming out, as the rising interest rates, high inflation, and slowing economic growth puts pressure on all asset classes, especially speculative ones. To put it simply, silly season is over. A few spikes from Musk-related news won’t make up for continued losses. A return to prices last seen in late October to early November is wishful thinking. Weighing limited upside against the risk it gives back the rest of its gains from last year, there is little reason to dabble in Dogelon Mars today.
On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.