Elon Musk Declares in Court 'Most Crypto is a Scam' — But Admits Some Coins Have Real Merit

April 30, 2026 — Elon Musk, CEO of Tesla and SpaceX, gave testimony in court during the legal battle between himself and OpenAI, stating bluntly that “most cryptocurrency is a scam,” while adding that “some coins do have merit, but most are fraudulent.” This statement arose during a debate regarding an Initial Coin Offering (ICO) fundraising plan that OpenAI had considered in 2018 but ultimately canceled. Musk's words immediately sent shockwaves through the crypto trading industry, as he was once one of the market's major supporters, with Tesla famously purchasing $1.5 billion worth of Bitcoin in 2021.

Key Points of the Testimony

• Shift in Stance: Musk, who previously promoted Dogecoin and Bitcoin continuously on the X platform, this time delivered a harsh critique of the overall market under sworn testimony.
• OpenAI Case Context: The statement occurred in the context where Musk was explaining the reasons why OpenAI decided not to move forward with an ICO in 2018, a period during the ICO Bubble's boom and bust which saw thousands of scam projects.
• Acknowledging Quality Coins: Musk did not dismiss crypto entirely but pointed out that “some of them have merit,” reflecting the absolute necessity of due diligence and intensive asset filtering.

In-Depth Insight: Why This Statement Matters

Over the past decade, the crypto industry has faced countless scam coins, ranging from the 2017-2018 ICO era, the 2020 DeFi Summer, to the 2024-2025 Memecoin Mania which saw daily rug pulls on Solana and BSC. For a figure of Musk's stature to state this in court is not merely a personal opinion, but evidence that even major crypto supporters recognize the structural problems of the market, particularly on CEXs where coins are listed without proper vetting.

Market Implications and Trader Risks

In the short term, the market may experience profit-taking sell pressure on low-cap coins and memecoins as retail investors begin to re-evaluate their portfolios. Key Bitcoin support levels sit around $90,000 and $85,000, while short-term resistance is at $98,000. Altcoins with weak fundamentals face a potential liquidation cascade if market confidence continues to decline. Traders should manage their position sizing carefully and avoid coins without a whitepaper or a verifiable development team.

SiamDEX Perspective

Musk’s warning reinforces the importance of trading on DEXs with a non-custodial structure and on-chain transparency like Hyperliquid, a Perpetual DEX with a 100% on-chain order book that makes every transaction auditable. Traders do not need to deposit assets with an intermediary, reducing the risk of exchange collapses as seen with FTX and Mt. Gox in the past.

SiamDEX is the gateway to crypto trading on Hyperliquid that is convenient and requires no KYC. By simply connecting a Wallet, you can access institutional-grade Liquidity and trade Perpetual Futures with leverage up to 50x, alongside the lowest fees in the industry. In an era where “most crypto is a scam” according to Musk, choosing a platform that is decentralized and transparent is the true survival strategy for modern traders.