Elon Musk Criticizes Crypto Projects as ’Mostly Scams’ During OpenAI Testimony

Elon Musk labeled the majority of cryptocurrency projects as scams during his testimony in the OpenAI legal battle. The remark surfaced when questioned about OpenAI's abandoned 2018 plan to fund its nonprofit through an initial coin offering (ICO). "Some of them have merit, but most of them are scams," Musk stated, echoing the sentiment of a speculative era where white papers often masqueraded as viable businesses.

The ICO discussion resurfaced as part of a broader dispute over OpenAI's transition from a nonprofit to a commercial entity. Musk alleges OpenAI violated its founding principles by accepting a major investment from Microsoft and pivoting toward profit-driven objectives. OpenAI counters that Musk was aware of the potential need for a for-profit structure, including the ICO proposal, to secure necessary funding.