Dogecoin proponent Elon Musk says no to crypto promotions – Why?

• Musk pledges to cease crypto promotion amid rising social media scams.
• Recent crypto scams highlight social media’s dual role in promotion and fraud.

Tesla CEO and Twitter owner, Elon Musk, known for his enthusiastic support of cryptocurrencies, particularly Dogecoin [DOGE], recently made a surprising statement.

Musk’s bold move amidst rising scams

Amid a rising tide of social media scams involving crypto, Musk pledged to stop promoting digital currencies.

This move marked a significant shift in his approach, reflecting growing concerns about the impact of fraudulent schemes on the crypto community.

During a recent X Takeover event, Musk advised people not to trust any cryptocurrency projects that use his image or name.

He warned that these projects are likely scams, and emphasized that he is not involved in promoting such crypto ventures.

He said, 

“I’m not going to be promoting crypto — at most, in a joking way,” the billionaire said. “If you see me pumping crypto, it’s not me. I do think there’s merit in Bitcoin and maybe some other cryptos, and I’ve sort of got a soft spot for Dogecoin, because I like dogs and memes.” 

Real-world scams

For those unfamiliar, recent months have seen a notable increase in crypto-related scams.

Worldcoin [WLD] faced backlash after controversially altering its token unlock schedule, leading to allegations of market manipulation, with Onchain detective ZachXBT labeling it a scam token.

Moreover, on 26th June, Metallica’s X account was hacked, and the exploiters promoted a Solana-based token, METAL.

Additionally, Caitlyn Jenner’s social media account was compromised to promote the Solana [SOL]-based JENNER token, which rapidly achieved a $100 million trading volume and maintained high activity with over $60 million two days later, according to Dexscreener data.

Meanwhile, Jason Derulo’s JASON token launched on 23rd June, initially surged in value but quickly plummeted amid heavy selling.

Derulo blamed his co-creator, Sahil Ahora, known for past celebrity crypto scams, for the token’s decline, while pledging to improve its performance despite ongoing scrutiny from Web3 scam investigator ZachXBT.

The power of social media

This underscores the dual role of social media as both a powerful promotional tool and a breeding ground for scams.

While Elon Musk has been a prominent supporter of Dogecoin, fueling rumors of his personal endorsement, his legal team has consistently denied any involvement in manipulative schemes. 

The lawyers argued it best when they said,

“There is nothing unlawful about tweeting words of support for, or funny pictures about, a legitimate cryptocurrency.”