Elon Musk Says Most Cryptocurrencies Are Scams: Here's His Explanation

Statement Elon MuskCrypto has once again sparked debate in the digital asset industry. In his lawsuit againstOpenAI, CEO Elon Musk said that “some cryptocurrencies have value, but the majority are scams.”

The comments came when he was asked about the ICO plans that OpenAI had considered in 2018 to fund the non-profit organization.

This statement isn't just a casual opinion. Given that Musk has been a vocal supporter of crypto, his remarks sparked serious discussion about the risks of crypto investing, the rise of crypto scams, and the importance of crypto security in the era of increasingly sophisticated crypto scams in 2026.

Background to Musk's Statement at the OpenAI Conference

The case stems from a conflict between Musk and OpenAI. Musk accused OpenAI of “stealing a charity” after the company entered into a commercial partnership with Microsoft and shifted to a for-profit business model.

OpenAI denied this, stating that Musk had known about the potential transition from the start, including plans to fund it through an ICO.

When asked in court about the concept of ICOs, Musk explained that the fundraising model in the late 2010s was rife with speculation, and that many projects ultimately failed after raising large sums of public funding. It was in this context that his comment that the majority of cryptos are scams emerged.

Read Also:Elon Musk: D.O.G.E to Close in July 2026

Musk's Contradictory Attitudes on Crypto

Interestingly, Elon Musk's crypto opinions haven't always been consistent. During the pandemic:

He encourages the adoption of Bitcoin and Dogecoin through his tweets.

His company, Tesla, Inc.,buy Bitcoinworth $1.5 billion in 2021, making it a pioneering public company to put crypto on its balance sheet.

However, in 2022, Tesla sold 75% of its Bitcoin holdings. This decision meant Tesla partially missed the major bull run of 2024, when Bitcoin's price surpassed $125,000.

Per Q1 2026:

• Tesla still has 11,509BTC
• It's worth around $786 million
• Purchased for a total cost of approximately $386 million
• This means that it still records very large unrealized gains.

This data shows that while Musk is critical of most crypto assets, he still acknowledges that some crypto assets do have real value.

Why “The Majority of Crypto Scams” ​​Isn’t an Exaggeration?

Looking at the history of ICOs, DeFi rug pulls, seasonal meme coins, and even fictional NFT projects, Musk's statement has some basis.

Common characteristics of crypto scams:

• Anonymous team with no track record
• Unreasonable profit promises
• Copy-pasted whitepaper
• Ponzi scheme disguised as staking/yield
• Tokens are created solely for “pump and dump”

This phenomenon is becoming increasingly widespread in the crypto scam era of 2026, where scammers are leveraging AI, deepfakes, and social engineering to appear credible.

Read Also:Elon Musk's Net Worth Dropped Tens of Billions of Dollars, Now It's at This Much

Crypto Investment Risks That Investors Often Ignore

Many novice investors jump into crypto because of FOMO, not research. Some real risks of crypto investing include:

• Extreme volatility
• The project has no real utility
• Low liquidity (difficult to sell)
• Regulations are unclear in many countries
• Illegal or unregulated exchanges

This is what Musk meant: not all crypto is a scam, but the ecosystem is full of irresponsible projects.

Crypto Security: The Key to Avoiding Scams

To avoid the Elon Musk crypto scam he refers to, investors need to focus on crypto security:

• Use official and registered exchanges
• Do Your Own Research (DYOR)
• Avoid promises of instant profits
• Check team transparency and roadmap
• Use wallets and layered authentication

Cryptocurrencies with strong fundamentals, widespread adoption, and high transparency tend to have long-term sustainability.

Read Also:What Crypto Does Elon Musk Own? A Peek at the Tesla CEO's Portfolio

Conclusion

Elon Musk's statement doesn't mean that all crypto is worthless. On the contrary, he emphasized that only a small percentage of crypto has true value, while the rest are merely speculative projects or scams.

For investors, this is an important reminder that entering intothe crypto world is not about following trends, but about education, security, and choosing the right platform.

How to Buy Crypto on Bittime

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Start by registering and verifying your identity, then make a minimum deposit of Rp10,000. After that, you can directly buy your favorite digital assets!

Check BTC to IDR, ETH to IDR, SOL to IDR rates and other crypto assets to monitor real-time market trends on Bittime.

Also, visit the Bittime Blog to get the latest updates and educational insights about crypto. Discover trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge.

FAQ

1. Is Elon Musk saying all crypto is a scam?

No. He said some cryptos have value, but the majority are scams.

2. Why does Elon Musk criticize ICOs?

Because many ICO projects in the late 2010s raised large sums of money and then failed or disappeared.

3. Does Tesla still own Bitcoin?

Yes, Tesla still holds 11,509 BTC as of Q1 2026 worth approximately $786 million.

4. What are the biggest risks of crypto investing today?

Scam, high volatility, and projects without clear fundamentals.

5. How to safely invest in crypto?

Use official platforms, do your own research, and avoid promises of instant profits.