Key Takeaways
- Elon Musk said most cryptocurrencies are scams, though he acknowledged some have merit.
- His crypto history includes backing Dogecoin, Tesla’s Bitcoin purchase, and later partial sell-offs.
- Lawsuits over alleged market manipulation were dismissed, but scrutiny of his influence remains.
When Elon Musk speaks about crypto, markets tend to react. This time, it wasn’t a tweet but a testimony.
During a court appearance tied to the ongoing OpenAI lawsuit on April 29, 2026, Musk told a jury in Oakland that “some of them have merit, but most of them are scams.”
The remark, delivered while discussing early conversations about potentially funding OpenAI with an ICO, quickly rippled across the crypto world.
It was a bold statement, even by Musk’s standards, and one that seemed to run counter to his long and highly visible involvement in digital assets.
Yet, as with much of Musk’s relationship with crypto, the reality is more layered than the headline suggests.
Elon Musk’s Complicated Relationship With Crypto
Musk’s history with cryptocurrencies has never followed a straight line.
He first dismissed Bitcoin in 2014, calling it potentially linked to illicit activity and saying he didn’t own any.
For several years, he remained largely on the sidelines, occasionally commenting but not actively participating.
That changed in 2019, when he began engaging with Dogecoin (DOGE).
A single tweet calling it “my fav cryptocurrency” triggered a rapid price surge, setting the tone for what would become a recurring pattern: Musk posts, markets move.
His follow-up messages, often memes or short remarks, helped turn Dogecoin from a niche project into a mainstream phenomenon, though price swings became equally pronounced in both directions.
By 2021, Musk’s involvement had moved beyond social media.
Tesla announced a $1.5 billion purchase of Bitcoin and briefly accepted BTC for vehicle payments. The move was widely seen as a turning point for institutional adoption, contributing to a broader market rally.
Musk also spoke positively about Bitcoin’s structure and acknowledged Ethereum’s potential.
But the shift didn’t last.
Just months later, Tesla suspended Bitcoin payments, citing concerns about the environmental impact of mining. The decision triggered a sharp market reaction and underscored how quickly sentiment could change.
Tesla later sold roughly 75% of its Bitcoin holdings in 2022, though the company still holds a significant position—estimated at around 11,500 BTC as of early 2026.
SpaceX is also believed to hold Bitcoin, while Musk himself has said he owns Bitcoin, Ethereum, and Dogecoin.
What Cryptocurrencies Does Musk Actually Hold?
Despite his criticism, Musk remains financially exposed to crypto.
Public disclosures and his own statements confirm that Tesla and SpaceX maintain Bitcoin holdings, while Musk personally holds multiple digital assets.
He has repeatedly described Dogecoin as his preferred cryptocurrency, even integrating it into Tesla merchandise payments and referencing it in various projects.
At the same time, his companies’ crypto strategies have evolved, shifting from aggressive accumulation to a more cautious, selective approach.
This dual stance, skeptical of the broader market but supportive of specific assets, helps explain the apparent contradiction in his latest comments.
Legal Scrutiny and Elon Musk’s Crypto Market Influence
Musk’s outsized influence has also drawn legal attention.
In 2022, a class-action lawsuit accused him and Tesla of orchestrating a “pump-and-dump” scheme involving Dogecoin.
Plaintiffs argued that his public statements artificially inflated prices, leading to subsequent declines that caused investor losses.
The case sought $258 billion in damages.
A federal judge dismissed the lawsuit in 2024, ruling that Musk’s statements were non-actionable “puffery”—general promotional language that reasonable investors should not treat as financial advice. The plaintiffs later withdrew their appeal.
Even so, the case highlighted a broader issue: Musk’s ability to move markets with minimal communication. His posts have repeatedly coincided with sharp price swings, particularly in more speculative assets like memecoins.
A Market Still Finding Its Footing
Musk’s latest remarks come as the crypto industry is in transition.
While regulation has improved and institutional participation has grown, speculative tokens and memecoin cycles continue to dominate headlines.
In addition to that, the industry is still rife with scams.
That contrast, between maturing infrastructure and persistent hype, mirrors the tension in Musk’s own view.
His statement that “most” cryptocurrencies are scams reflects ongoing concerns about fraud, low-quality projects, and unsustainable token models.
At the same time, his continued exposure to Bitcoin and other assets suggests he still sees long-term value in parts of the ecosystem.
The Bigger Picture
Musk’s relationship with crypto has always been defined by contradiction: skepticism and enthusiasm, criticism and participation.
His latest comments don’t mark a clean break from the sector.
Instead, they reinforce a position he has hinted at before—that while the underlying technology may have value, much of the market surrounding it remains unreliable.
For investors and observers, the takeaway is less about any single statement and more about the pattern.
Musk doesn’t speak about crypto often in formal settings. But when he does, it tends to reset the conversation.
And as long as he remains both a critic and a participant, that tension is likely to persist.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
