Elon Musk is once again making waves in the crypto space this time with a warning. During a recent conversation with Joe Rogan, Musk cautioned against overcommitting to meme coins, likening their speculation to gambling and musical chairs. But despite his concerns, the memecoin market is soaring, fueled by hype, speculation, and regulatory ambiguity.
Speaking on The Joe Rogan Experience on Friday, Musk took a skeptical stance on the memecoin frenzy, comparing it to a high-stakes game of speculation rather than a serious investment.
“It’s totally people just doing whatever, greater fool theory and musical chairs,” Musk said. “Don’t bet the farm on a memecoin.”
Despite his own history of backing Dogecoin (DOGE)—even integrating the DOGE logo into his Department of Government Efficiency (DOGE) joke—Musk was clear: memecoins should not be treated as financial assets with intrinsic value.
Rogan, equally puzzled by the speculative frenzy, questioned why pump-and-dump schemes remain legal.
“It’s just weird that it’s legal still,” Rogan remarked.
Musk didn’t push back, instead shifting the conversation to a broader critique of financial systems:
“The government’s one big pyramid scheme, if you ask me. Social Security is the biggest Ponzi scheme of all time,” he added.
SEC: Memecoins Are NOT Securities
While Musk and Rogan dismissed memecoins as gambling, the Securities and Exchange Commission (SEC) took a different stance—declaring that memecoins do not fall under its regulatory oversight.
According to the SEC:
“Meme coin purchasers are not making an investment in an enterprise… Their funds are not pooled together to be deployed by promoters or other third parties for developing the coin or a related enterprise.”
The agency further emphasized that memecoin prices are purely speculative, driven by community sentiment rather than centralized efforts.
SEC Commissioner Hester Peirce reinforced this point, warning traders that memecoins fall outside the commission’s jurisdiction:
This regulatory position comes as part of a major shift in the SEC’s approach to crypto oversight. In recent weeks, the agency has dropped investigations into Coinbase, Robinhood, OpenSea, and MetaMask, redirecting its focus toward cybersecurity and emerging digital threats through its new Cyber and Emerging Technologies Unit (CETU).
Despite Warnings, Memecoins Are Soaring
Musk’s warning hasn’t dampened enthusiasm for memecoins, in fact the market is experiencing a massive surge.
Over the last 24 hours, top memecoins have rallied significantly:
- Dogecoin (DOGE) ↑ 10.3%
- Shiba Inu (SHIB) ↑ 5.5%
- Pepe (PEPE) ↑ 5.7%
- The Official Trump (TRUMP) token ↑ 20.6%
- Bonk (BONK) ↑ 11.7%
Total trading volume for memecoins has soared past $9.38 billion, signaling renewed momentum and bullish speculation.
Musk’s Influence on Memecoins
While Musk warns against reckless investing, history shows that his words move markets especially memecoins.
His tweets about Dogecoin have sent the price skyrocketing in the past, and his Tesla merch store briefly accepted DOGE payments, giving it legitimacy.
Despite his latest skepticism, Musk’s influence remains undeniable in memecoin trading. Whether investors heed his warning or keep chasing profits, one thing is clear: the memecoin craze isn’t fading anytime soon.
Caution vs. FOMO
Musk’s advice is sound, memecoins are high-risk, speculative assets. Yet, market trends suggest that the hype continues to drive massive liquidity into these tokens.
As regulatory scrutiny eases and speculation reaches new highs, traders face a familiar dilemma: play it safe or chase the next meme-fueled rally?
One thing’s for sure Elon Musk’s words will continue to shape the market, whether investors listen or not.
