Elon Musk has once again sparked discussions in the crypto world, this time taking a critical stance on memecoins.

Speaking on The Joe Rogan Experience, the Tesla CEO compared these digital assets to a high-stakes game of chance, warning investors about their unpredictable nature.

According to Musk, memecoins function like a casino where participants rely on the greater fool theory—betting that someone else will buy in at a higher price before the bubble bursts. He emphasized how these tokens often experience meteoric rises followed by sudden crashes, leaving latecomers with significant losses.

Despite his cautionary remarks, Musk acknowledged his past support for Dogecoin, describing it as a lighthearted project rooted in humor. However, his recent comments suggest a more skeptical outlook, advising against reckless enthusiasm.

Joe Rogan shared Musk’s concerns, calling the hype around memecoins irrational. He questioned why people continue to invest real money into such speculative assets, particularly as market instability increases. The recent collapse of multiple Solana-based memecoins, including the widely discussed Libra token, has amplified fears of insider manipulation and investor fatigue. Analysts believe that frustration is mounting as more traders recognize the risks involved in these speculative markets.