Elon Musk compares meme coins to a casino, warning investors of pump and dump risks

Tesla CEO Elon Musk weighed in on meme coins on Friday (Feb 28), comparing them to casino games and cautioning investors against betting their life savings on them.

“I mean it’s sort of like if you go to the casino, if you expect to win at the casino, you’re being a fool,” Musk told comedian and podcaster Joe Rogan during their three-hour conversation.

He continued: “It’s like a casino or something. And then people just do the greater fool theory and like musical chairs, and whoever is the last to sit down loses type of thing.”

Musk’s comments come as he confirms his interest in bringing U.S. Treasury operations onto Bitcoin and blockchain technology. However, the billionaire cautioned that those hoping to “win” by betting on meme coins are being “foolish,” especially as a meme coin crash looms, potentially impacting Bitcoin’s price rally.

“You’re not gonna win with meme coins,” Musk stressed. “Don’t throw your life savings into one.”

To drive the point home, he used the well-known phrase: “Don’t bet the farm on meme coins.”

Although Musk once championed Dogecoin as a joke that evolved into a mainstream asset, he now seems more skeptical of the broader meme coin trend, likening it more to gambling than a real investment. President Donald Trump was among those also pushing his own $TRUMP token.

Musk’s view aligns with that of billionaire investor Mark Cuban, who has previously slammed meme coins as a “hustle” and compared them to a game of musical chairs.

The US Securities and Exchange Commission recently clarified that meme coins don’t fall under federal securities laws, though any fraudulent activities involving them could still lead to legal trouble.

According to crypto exchange Godex.io, 42% of political meme coins lost half their value within just 0-2 days of reaching their all-time high. Meanwhile, a staggering 97% of these coins are currently trading at more than 80% below their peak, with trading volumes also on the decline.

Featured image: Grok

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