Elon Musk advises against cryptos and questions his support for Dogecoin (DOGE)

Many believed Elon Musk was a big fan of cryptocurrency and the famous memecoin Dogecoin (DOGE). However, the Tesla CEO challenged this belief at a recent summit. The event in question was the Wall Street Journal’s CEO Council Summit held in London. During his address, Elon Musk, who wields significant influence over the market, issued a warning to crypto investors. Here’s what happened.

Is Musk simply avoiding trouble with the US justice system?

Elon Musk, who previously replaced his Twitter logo with Dogecoin, has made a surprising statement. Indeed, the Tesla CEO declared, “I’m not advising anyone to buy crypto or bet the farm on Dogecoin.” He revealed that he only likes the famous memecoin for two reasons. Firstly, Dogecoin has the best humor, and secondly, it has dogs.

Musk’s remarks are surprising, considering the billionaire has had a long-standing relationship with the memecoin. To start, he promoted Dogecoin on Saturday Night Live. He then acquired the memecoin for his son. Furthermore, he expressed his desire to contribute to a wider adoption of DOGE.

However, Musk’s cautious advice may be explained by his wish to avoid further issues with US regulators. In fact, the billionaire had to pay a $20 million penalty to the US Securities and Exchange Commission (SEC) in 2018. The US regulator accused him of inflating Tesla’s stock price through an unpleasant joke.

Musk’s warning comes after a statement by Changpeng Zhao regarding Dogecoin (DOGE) last week. The CEO of Binance expressed his astonishment at the memecoin’s continued existence. He suggested that Musk may have contributed to prolonging the lifespan of Dogecoin. Meanwhile, the memecoin has experienced an increase in transaction volume with the launch of the DRC-20 standard. While this is good news for Dogecoin (DOGE), some remain concerned about its future. In April, Bloomberg’s senior macroeconomic strategist, McGlone, made a dire prediction about Dogecoin (DOGE). He described the memecoin as a speculative engine that needed to be eliminated to cleanse the crypto market.