Surprising Comments on Cryptocurrency from Elon Musk: “Some Have Value, But Most Are a Scam”

Elon Musk made noteworthy comments about cryptocurrencies in his testimony given as part of the ongoing OpenAI lawsuit.

According to Fortune magazine, when asked how he would explain cryptocurrencies to a jury in court, Musk responded, “Some have value, but most are scams.”

The announcement comes amid discussions surrounding OpenAI’s past consideration of an ICO (Initial Coin Offering) to secure funding. ICOs, a method for projects to raise funds by selling tokens, gained significant attention in 2017–2018 but have become controversial within the industry due to the failure of many projects.

The legal battle between Musk and OpenAI is based on allegations that the company has deviated from its founding mission. Musk argues that OpenAI, which he co-founded in 2015, has “violated its purpose” through its agreements with Microsoft and its commercial activities. OpenAI, on the other hand, claims that Musk knew from the beginning that the company could evolve into a profit-driven entity over time.

Another allegation raised in court was that OpenAI had previously planned to raise funds through an ICO, and that Musk may have supported this idea.

Musk’s recent statements contrast sharply with his past strong support for cryptocurrencies. Particularly during the pandemic bull market, Musk became one of the most influential figures in the cryptocurrency market.

In 2021, Tesla became a leader among publicly traded companies by adding $1.5 billion worth of Bitcoin to its balance sheet. During the same period, Musk’s social media posts caused sharp increases in the price of Dogecoin.

*This is not investment advice.