What is ElonHype (ELONHYPE)?
Elon Musk is an extremely popular figure in the world of cryptocurrency due to his support of Dogecoin and propensity to post memes on Twitter. Naturally, this behavior of his has spawned a surge of unofficial projects bearing his name and likeness.
One such project is called ElonHype. Unfortunately for ElonHype, there is not much hype surrounding the project. But it’s still worth discussing the project as it offers insight into the world of Elon Musk inspired cryptocurrency projects.
What is ElonHype (ELONHYPE)?
ElonHype is a multifaceted crypto project that plans on developing many different platforms that generate revenue. These include an NFT collection, an NFT marketplace, and a play to earn game. Of course, the project also has a cryptocurrency associated with it that would be usable across all the different platforms.
The end goal, according to the website, is to have an interconnected ecosystem of ElonHype projects.
This sounds exciting and promising at first glance. However, after a little bit of research it becomes quickly apparent that there is not much to ElonHype other than hype and the stolen gravitas of Elon Musk. The next section will cover all the problems with ElonHype.
The Problems with ElonHype
ElonHype has a lot of problems once some cursory investigation is conducted. The website looks good, the founders are doxxed (or are they?), and the project has some interesting albeit not unique ideas.
Anyway, some of the problems include the following:
Are The Founders Doxxed?
The names of the founders are on the homepage along with links to their Telegram, VK (that’s the Russian version of Facebook), and their Instagram accounts. However, their VK accounts are all listed as private and one VK profile does not even have a picture, which is not particularly unusual for VK, but it is odd for the founder of a crypto project.
The Instagram accounts have a decent amount of pictures on them, which is a good sign. But it is odd that none of the pictures on any of the Instagram accounts mention the ElonHype project. Nor does ElonHype appear in the bio section of the profile.
Now, does this mean that the founders are hiding their identities?
Not necessarily, but it certainly looks suspicious when their social media makes no mention of a crypto project that they founded and Google search of their names turns up no information.
It’s also worth mentioning that a Google search of the names of the founders turns up no relevant results. This is a little unusual, but can be explained as a translation issue from Cyrillic to English.
To summarize, we are skeptical about the true identity of the founders, but there’s not enough proof to say that they are faking their identity.
The Project Promises Too Much
A fundamental problem with this project is that it promises way too much stuff. They want to create an NFT market, launch an NFT collection, launch a cryptocurrency, and a few other minor projects.
It’s a lot of stuff to handle for a team that appears to consist of three men. But this is a common tactic for projects that only plan on garnering a large amount of attention. They promise everything, deliver nothing, and take all the investor money.
It’s certainly a major red flag when a project makes a bunch of grand promises like the ones that ElonHype makes.
Elon Inspired Projects Always Fail
Another fundamental issue with ElonHype is that all the Elon tokens fail. The problem likely relates to the fact that projects like this attempt to ride on the coattails of a popular meme (Yes, Elon Musk is a meme).
A project must have a community that comes together organically and pushes the product to a larger audience with the use of memes. This happened with Dogecoin, Ethereum, Monero, and Bitcoin.
Creating a project around a meme is doing it backwards and just does not work. It shows a fundamental misunderstanding of how crypto projects and human interaction works. More importantly, meme projects like this attract money chasers and not the die hard people that hold it no matter what.
To summarize this point, memecoins always fail because they create the project after the meme rather than creating the project and letting the community create its own memes.
A relatively minor, albeit very important, issue with ElonHype is that the whitepaper is not very good. It’s not a bad whitepaper – it’s readable and explains the project. But the author of the whitepaper simply makes a bunch of big promises and talks about how rich everyone will get.
There’s no mention of how the project plans on achieving any of the goals. There’s also nothing to indicate that the person writing the whitepaper has the technical knowledge necessary to deliver on any of the rather large promises made in the whitepaper.
Basically, this is not a serious whitepaper. It’s more of a hype paper, which should not be surprising given the name of the project.
Unauthorized Use of Elon Musk
Another issue with ElonHype is that we find it extremely unlikely that they went through the proper steps to use Elon Musk’s image and name. For one, it’s unlikely that Musk would associate himself with such a low quality project. The man is one of the richest in the world, so it’s unlikely any amount of money the founders could offer him would sway his opinion.
The founders do not claim to have permission to use Musk’s image and name, so they are not lying. But the unauthorized use of Musk’s image could become problematic if the project becomes as big as the founders intend it. Musk would likely sue once the project receives enough attention.
That lawsuit would likely result in the end of the project.
High Buy and Sell Tax
Finally, this project has an insanely high buy and sell tax of 11% for all purchases and sales. Projects do this because Safemoon did it, but it didn't work out well for Safemoon in the end.
Transaction taxes have a tendency to stifle growth, which is obviously bad for a new project attempting to grow.
Is ElonHype a Good Investment?
No, ElonHype is not a good investment. There are doubts about the true identity of the founders, which is a massive red flag if the suspicion proves correct and the founders are obfuscating their true identity.
Additionally, the project itself does not appear to be that good. It promises way too much and is literally based around hype. It’s basically a lot of talk with very little substance.
ElonHype is a project that we would avoid. There are better projects out there with more reputable teams if you want to try your hand at investing in smaller crypto projects. To put it bluntly, ElonHype looks like some sort of scam.
To summarize things, ElonHype is a project that plans on launching an entire ecosystem that includes an NFT marketplace, a play to earn game, and an NFT collection. Even legitimate projects with large teams like Axie Infinity do not take something as complex as creating an NFT marketplace.
The project does not offer much other than the unofficial use of Elon Musk’s name and likeness, which makes it a very low quality project in our opinion.