The cryptocurrency market is currently in a bearish period but despite that, some cryptocurrencies are still delivering impressive gains. One example is Elongate which is the top gainer on Decoin in the last 24 hours at the time of this press after rallying by 181%. These are impressive gains and it highlights some of the opportunities in the lesser-known cryptocurrencies. But the real question now is whether you should deep dive into Elongate and invest.
Elongate is a memecoin whose origins were inspired by Elon Musk through a tweet as highlighted in its whitepaper. However, this particular cryptocurrency belongs to a class of meme coins that are focused on having utility. Elongate hopes to make it into mainstream adoption through a philanthropic approach that involves collaborating with charitable organizations and spreading knowledge about cryptocurrencies and blockchain technology.
Elongate traded at $0.000000059 at the time of this press, with a market cap of just over $34 million and a circulating supply of 475.67 trillion tokens. Its historic price action has also not had that much action which is characteristic of lesser-known coins. This is further backed by the fact that Elongate has not been around for long.
Will Elongate follow a similar path as Shiba Inu?
Shiba Inu rode on the meme coin hype and managed to become one of the most popular cryptocurrencies. It also managed to become one of the top 20 cryptocurrencies and garnered a lot of attention. The biggest gainers were those that invested in it in its early days in 2020, and now that it has delivered such impressive gains, crypto traders are wondering which other coin to jump on when it is in its infancy. Elongate is currently a contender for such a position judging by similar characteristics as a meme coin riding off the hype around Elon Musk.
The fact that Elongate is named after the Tesla CEO might provide just enough credibility and hype to attract a lot of investment in the future. However, there is no guarantee that Elongate will be the next memecoin to rise from the depths and achieve robust growth.
Rug pull or gem?
Elongate’s focus on a community that has a positive social impact is a good thing as far as legitimacy is concerned but this is not a guarantee that it will not result in a rug pull. Investors should exercise caution when purchasing cryptocurrencies and there is still a high degree of risk with Elongate. It is not as popular as Shiba Inu and this means it still has a lot of room for failure.
On the other hand, its price is still near the floor, which means it has a lot of upside considering its low market cap. There is still room for growth and the higher the risk, the higher the potential reward. It might be wise to invest a small amount that would not hurt your financial situation if you lost it. For example, you can invest about $100 into Elongate at its current price and wait for it to drop some zeros for a healthy return on investment. The downside is that it may crash and burn, but the risk to reward ratio suggests that it might be worth the small investment.