May 2026. During a court hearing in the case against OpenAI, Elon Musk made the harshest statement about the cryptocurrency market in recent months. The head of Tesla and SpaceX said the following.
“Some cryptocurrencies do have technical value. But the vast majority of them are an outright scam. This is especially true for the endless stream of new memecoins. They are created only so that the creators can cash out.”
The Evolution of Musk’s Position from Jokes to Harsh Criticism
This statement is notable given the billionaire’s long history with meme coins. Just a few years ago, Musk called Dogecoin “the people’s crypto.” He appeared on Saturday Night Live making jokes about DOGE and even temporarily allowed people to pay for Tesla tickets with it. But now his rhetoric has changed.
First, he drew a line between DOGE and other memecoins. According to Musk, Dogecoin is a historical phenomenon. It grew from an internet meme into a payment system with low fees. He called other projects like Shiba Inu, Dogwifhat, Pepe, and thousands of new tokens “meaningless copy-paste.”
Second, the reason for this awakening lies in lawsuits and lost money. Musk’s lawyers revealed that the SpaceX team received thousands of complaints from employees and fans. People invested in dubious tokens after his old tweets and lost everything.
Third, when asked about the technology, Musk said the following. Blockchain is useful for decentralizing finance and verifying data. But today, any YouTuber can launch their own token in five minutes. In 99% of cases, it will be a scam.
The Paradox
Despite the harsh words about the majority, Dogecoin rose 6% on the day of the statement. Traders believed that Musk had effectively recognized DOGE as an exception to the rule. He called this coin legitimate. Meanwhile, the index of small memecoins, including SHIB, PEPE, and BONK, fell 3-7%. Investors were frightened by the word “scam” coming from the world’s main crypto influencer.
Implications for the Market
First. Regulators gain another advantage. Musk’s statement, made despite multiple lawsuits against him for market manipulation, that memecoins are a scam could be used by the SEC in court against the creators of such tokens.
Second. The trend toward utility is gaining strength. Musk indirectly confirmed the direction for 2026. The market is tired of empty coins. Investors are shifting toward projects with real yield, such as RWA, AI agents, and DePIN.
Third. The community is divided. DOGE fans thank Musk for his support. Meanwhile, creators of new memecoins call him a hypocrite who himself pumped DOGE to 70 cents.
The Verdict
Elon Musk is no longer playing games with memecoins, except for his favorite dog. His statement is a clear signal. The era of hype is ending. Get ready for a purge
This article is for informational purposes only. Elon Musk is not a financial advisor. Never invest money you cannot afford to lose.