With the force of nature that is Elon Musk poised to change the world (again), anything related to the Tesla (NASDAQ:TSLA) CEO — even if only loosely — may rise higher due to extreme speculation, which represents the driving force behind cryptocurrency token Dogelon Mars (ELON-USD). A blockchain project that ties into the meme-coin craze that has seemingly taken over the sector, ELON could surprise some folks but extreme caution is warranted.
By extreme caution, I mean that investors with lower tolerance for stomach-churning volatility should stay well away from Dogelon Mars. For one thing, not much is known about the founders of this token with a cult following. As Coinmarketcap.com points out, this circumstance may be problematic as several meme-coin scams have erupted from unknown founders, such as rug pulls and exit scams.
Another factor to consider is that neither ELON nor the blockchain architecture of Dogelon Mars is particularly useful. Don’t get me wrong: Practicality doesn’t always equate to profitability, as myriad other junk coins’ remarkable success can tell you. However, when you have over 19,000 digital assets available for trading, ELON could easily fall by the wayside in favor of the current flavor of the week.
While likely no financial advisor with a reputation to protect will guide you to ownership of Dogelon Mars, it must be stated that ELON does not appear to be a rug-pulling scam, largely because the founders burned (essentially destroyed) a large portion of the token’s liquidity. Therefore, if it was attempting a pump and dump, the burning incident would not be ideal.
As well, Dogelon Mars reacted positively to Musk’s purchase of social media platform Twitter (NYSE:TWTR), perhaps because speculators anticipate that he will make the network very crypto-friendly. Incidentally, ELON has been printing a series of rising lows since Feb. 23 of this year.
But is that enough to justify a position in Dogelon Mars? Again, most folks should stay away. While ELON may be intriguing from a play on the meme-trade psychology, it’s simply too volatile for your typical investor to accept.
On the date of publication, Josh Enomoto 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.
