At the hottest moment in the spotlight, Elon Musk did not talk about rockets or self-driving, but instead dropped a remark during a lawsuit/hearing related to OpenAI that was enough to ignite the entire market when questioned by lawyers about crypto assets—"Some of them have merit, but most of them are scams." In that hearing room filled with robes and recording pens, he responded to old emails about discussions within OpenAI regarding fundraising through ICOs around 2018, while splitting the entire industry in half: a few "valuable," and most "are scams."

This statement swept through media and social networks within hours, not just because it was sharp, but also because the speaker was the same Musk who publicly supported Bitcoin and Dogecoin multiple times between 2017-2021, creating the “Musk Effect” in the market. In the approximately 24 hours surrounding this remark of "most are scams," there were billions of dollars in liquidations in the entire crypto derivatives market: Source A cited a figure from CoinAnk of about $355 million, including long positions of about $258 million and short positions of about $96.37 million; while Source C's total amount during the same period fell in the range of about $530 million to $565 million, clearly higher. No one can currently conclude whose data is more "accurate," but it is certain that in a high-leverage, emotionally fragile market, a celebrity's words and price tremors, along with liquidation numbers, have become intertwined again—this is the main line this article will track: the amplification of discourse and volatility, on the same timeline.

Courtroom Crossfire: From OpenAI ICO Inquiry to Scam Accusations

What truly pushed Musk to the phrase "crypto scam" was a seemingly technical cross-examination. The opposing lawyer presented not Twitter screenshots but referred back to some internal ideas from around 2018—OpenAI had discussed whether to fund this nonprofit research institute through an ICO. Around these emails and plans, the issue was condensed into one core question: if you have considered fundraising through token issuance, what is your current attitude toward this type of fundraising?

Musk's answer first gave a narrow concession: "Some of them have merit," admitting that a few crypto assets do have technical or financial exploration value. But then he quickly shifted the tone, immediately following up with the second half of the sentence—"but most of them are scams." This was not just a casual remark but was directly used to rebut inquiries about the rationality of ICO fundraising: since this field "most are scams," then those past considerations around ICOs naturally carried heavy shades of speculation and fraud in his view. This part of the dialogue in court records pinned Musk's position to an extreme: admitting exceptions while denying the whole.

It should be emphasized that currently public materials only confirm this statement appears in the relevant lawsuit/hearing against OpenAI, as part of the public court records, but does not provide finer coordinates—such as which day, at what specific time, how long it lasted, etc., which have not been cross-verified by various parties. This article will reconstruct this clash based only on the publicly available content and will not complete the timeline or details for narrative completeness, nor will it speculate on motives and lines for either party outside of the court proceedings.

From Supporting Bitcoin and Dogecoin to Criticizing Most Scams

If we rewind the audio of this hearing to the years 2017-2021, it’s hard to align Musk at that time with today’s “most of them are scams.” During those years, he was repeatedly drawn into the climax of crypto stories: Tesla loudly announced the purchase of Bitcoin in 2021 and briefly opened BTC payments, seen as an important hand reaching out from traditional giants into the on-chain world; on the other hand, he intensively shared, commented on Dogecoin-related content on social media, and a casual joke could be interpreted by the market as another "support" for DOGE. The dramatic rise and fall of prices and the frenzied following from retail investors gradually gave birth to the so-called narrative of the "Musk Effect"—a tech billionaire willing to embrace mainstream coins, even favoring Dogecoin, became the amplifier for crypto market capitalization and sentiment.

It is precisely because of this history that when the statement "Some of them have merit, but most of them are scams" was recorded and rapidly spread during the hearing, the sense of contrast almost required no additional embellishment. Media headlines frequently combined words like "former supporter," "turning," and "attitude change," with commentators seizing on "most are scams," believing Musk began to actively emphasize the overall risks of crypto assets, unwilling to just play the role of a supporter of Bitcoin and Dogecoin anymore. This interpretation itself is merely a viewpoint, yet it quickly gained the upper hand in public opinion—people are accustomed to drawing a clear turning arc connecting the past “support” and today’s “criticism.”

However, if we break it down, another interpretation quietly takes shape: Musk is not simply "denying everything," but broadly distinguishing between a few "valuable" leading assets and the numerous long-tail tokens, aiming his critique more sharply at the latter. In court, he did not name any specific currencies, but in the eyes of many observers, "some of them have merit" naturally refers back to Bitcoin and Dogecoin, which he has publicly supported many times; while “most of them are scams” is interpreted as a summary of the speculative projects and fraud cases rampant in this field. In reality, the mixture of good and bad in the crypto asset world is already common knowledge among global regulators and media reports, which makes Musk's summary not seem abrupt in the market—what really leads people to speculate is whether the "Musk Effect," which once ignited the market, is now being pulled back by him to a calmer, more cautious side.

Hundreds of Millions in Liquidations in 24 Hours: A Single Statement Amplifying Volatility

Just around the time the statement "most of them are scams" was repeatedly shared on social platforms, the derivatives market provided the most direct feedback. Source A, citing statistics from CoinAnk, stated that in the same time window, the total liquidation in the entire crypto derivatives market was about $355 million, with long positions around $258 million and short positions around $96.37 million; while Source C gave a much higher range: approximately $530 million to $565 million. Both figures represent “liquidations across the entire network in 24 hours,” yet the two sets of numbers are almost not in the same magnitude, which can only be explained by differing statistical criteria, sample scopes, and even liquidation rules. Based on the current information, no one can firmly declare which number is the “only correct” one; reports can only present both side by side without endorsing either.

What makes these numbers striking is the timing of their appearance: prices and leverage positions were already in a sensitive range, emotions were teetering on the edge, and Musk’s statement "most are scams" felt like the final nudge that kicked the already taut bullish and bearish sentiments down together. High leverage, high retail participation, and noise in information characterize the structural features of this market; as long as prices shift even slightly in one direction, it will trigger a chain reaction along the leverage chain causing forced liquidations. Musk's identity and volume made his remarks more easily interpreted as a "signal" at such moments, thus becoming one of the catalysts amplifying existing volatility—but merely "one," not simply attributing several hundred million in liquidations to his emotional judgment.

For readers, perhaps what requires more vigilance is not the absolute figure of hundreds of millions, but the way they are narrated. When you see statements like "Musk's words lead to $X billion in liquidations within 24 hours" on social media, the first question should be: where does X come from? Is it the $355 million reported by CoinAnk, or the $530 to $565 million from Source C? Or is it a third calculation outside of these two? In this story, the “how many hundreds of millions exploded” itself is a number with footnotes; it is never a singular, definitive value, but rather a narrative material processed through different institutions and methods—if one overlooks this, it is easy to get carried away by a seemingly precise number during the most fragile emotional times.

The Amplifier of Celebrity Microphones: The Return of the Musk Effect

In this market, which is highly sensitive to numbers, Musk's account itself is a powerfully astounding amplifier. Around 2021, he repeatedly shared Dogecoin memes on social media and commented that "Dogecoin will become the people's currency," with each casual remark accompanied by sharp short-term price rises for DOGE; "Musk's tweet led to a big bull candle for Dogecoin" became a joke shared by retail investors at that time, and the term "Musk Effect" was cemented in that phase. During the same period, Tesla announced its purchase of Bitcoin and temporarily accepted BTC payments, and later Musk expressed concerns about Bitcoin mining energy consumption on social media, each of these public statements contrasted against Bitcoin's dramatic price fluctuations, consolidating his image as the "biggest KOL in the crypto narrative."

The logic behind this effect is not mysterious: in a market with high retail participation and widespread use of leverage and derivatives, a celebrity's single statement can itself change emotional expectations; and on social platforms, this statement will be screencapped, reshared, and reinterpreted countless times, quickly crystallizing into a “consensus signal.” Traders holding high-leverage contracts find it hard to remain indifferent: some jump in to add positions ahead of time, while others, fearing being "led," hurriedly close their positions. The initial price movements are then seen by more people as "verification" of the celebrity's remarks, therefore forming a feedback loop where public opinion, emotions, and trading mutually reinforce each other. The long-term fundamentals of projects may not change over a couple of days, but the flow of funds and transaction structures have already been reshaped by sentiment, maximizing short-term volatility.

Thus, when he threw out “Some of them have merit, but most of them are scams” during the hearing, the market instinctively intertwined this "most are scams" with the image of him supporting Dogecoin in the past: the same person, previously regarded as the trumpet of a bull market, now seems to be dousing cold water on the entire industry in the hearing room. In a bull market, his high-profile support was seen as an amplifier of trends; while in the current more complex and differentiated cycle, similar levels of microphone are beginning to convey risk warnings or even negating judgments. Behind these two distinctly different signals, what the market is really concerned about is, in fact, the same question—when prices can be swayed by a single word, is it Musk who is speaking, or is the highly leveraged, information-asymmetrical crypto market speaking through his voice?

Seeking Rationality Between Scam Accusations and Frenzy

"Some of them have merit, but most of them are scams." When Musk gives this judgment in court, he is laying bare the industry's most awkward side: on one end are the few crypto assets he admits are "valuable," and on the other, the reality filled with speculative plays and fraud cases that resonate with the stereotype that "most are scams." This seemingly contradictory statement actually corresponds to a muddy market structure—projects with real long-term value are hard to distinguish from the noise, while a large number of assets driven by stories, emotions, and personas dominate discourse in the short term.

In this incident, the amplifier effect of celebrity discourse and the high-leverage environment is again concretized by the liquidation data: Source A quoted CoinAnk stating that within 24 hours of the relevant remarks, the total crypto contract liquidations amounted to about $355 million; Source C provided a range of $530 million to $565 million, with the notable divergence in these two sets of numbers reminding us that in a market with such fractured statistical criteria, it is challenging to accurately gauge price and risk itself. In such an environment, treating anyone’s words as a compass for “determining direction” could be magnified into a fatal risk in the chain reaction of high leverage.

It also needs to be emphasized that there are boundaries to the information itself. Current inquiries about which day the hearing has gone on, how much Musk previously donated to OpenAI, whether specific nicknames for Sam Altman were used internally, and related memecoin rumors remain in a state of "to be verified" and should not be interpreted or bet upon as established facts. In the face of unclear details, the most rational choice is not to seek emotional outlets in fragmented information, but to acknowledge the scope of "unknown" and base positions and judgments on confirmed materials.

If this hearing leaves any useful signals for the crypto market, it is likely not Musk's position "hardening" itself, but the repeated questioning of an old issue: when we choose between "some valuable" and "most suspicious," who are we really following? The answer should shift from personal remarks to the project's own transparency, compliance pathways, and verifiable long-term value—only if this does not change can the reality of “most are scams” be gradually squeezed out, no matter who speaks next time in court or on social platforms.

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