Despite his DOGE department being a reference to one
Elon Musk has sent a stark warning to meme coin investors, comparing their fervor to reckless gambling.
Cryptocurrency, especially Bitcoin and meme coins, can be a maze to navigate – and sometimes, diving in headfirst can do more harm than good.
In a candid appearance on The Joe Rogan Experience podcast, the Tesla and SpaceX magnate didn’t mince words. He cautioned against throwing serious money into these volatile digital assets, which, despite the widespread popularity of coins like Dogecoin and Shiba Inu, present an unpredictable and high-risk gamble. Musk made it crystal clear: chasing quick riches through crypto can be a perilous game.
Elon Musk didn’t hold back when discussing the meme coin frenzy, likening it to a high-stakes casino game. He explained, “It’s like a casino. People just follow the ‘greater fool’ theory, like musical chairs, and the last person standing loses.” He continued to stress the risks, drawing parallels to traditional gambling, adding, “If you expect to win at the casino, you’re being a fool. And if you expect to win at meme coins, you’re being foolish too.”
Musk’s message was clear: “Don’t sink your life savings into a meme coin.”
Joe Rogan chimed in, offering a more moderate take: “You can gamble a little, ride the waves, win some, lose some…”
Musk, however, clarified his stance, emphasizing moderation: “If you want to have some fun with meme coins, go ahead. But don’t bet the farm.”
The conversation comes at a time when the crypto market is seeing dramatic swings, including the launch of a Donald Trump-themed meme coin that shot up past $60 before crashing below $14. According to 10x Research experts, this kind of volatility is part of a larger pattern, where insiders cash out at the peak, leaving regular investors with steep losses — a common practice in the industry known as a “pump & dump.”
Markus Thielen, founder of 10x Research, shared his thoughts with Forbes on the issue: “The problem isn’t just the price drops; it’s the realization that insiders can accumulate large amounts early, leverage major exchanges for liquidity, and then sell to retail investors at inflated prices.”
While the U.S. Securities and Exchange Commission (SEC) recently clarified that most meme coins are not classified as securities, treating them more like speculative collectibles, fraudulent activities involving these coins are still subject to regulatory action.
Despite his cautionary words, Elon Musk has undeniably played a pivotal role in Dogecoin’s success. His tweets have often led to dramatic price spikes, with one of his recent posts — simply sharing X (formerly Twitter)’s new logo from the DogeDesigner account — causing Dogecoin’s value to surge by 9%. Musk has also been a vocal supporter of meme coins, even backing the creation of the Department of Government Efficiency (DOGE), a playful nod to the popular token.
While Musk clearly finds meme coins entertaining, he is unwavering in his advice: don’t treat them as a serious investment.
“At the risk of saying something bold and outrageous — don’t bet the farm on a meme coin,” Musk told Joe Rogan during their podcast conversation.
For those still chasing quick riches in the volatile world of crypto, Musk’s message remains simple: it’s fine to have fun with meme coins, but always play at your own risk.
