Musk, the billionaire trying to ferry people to Mars and build electric cars for Earth, hosted NBC’s Saturday Night Live program on, uh, Saturday night. As expected, the meme cryptocurrency dogecoin came up.
Doge traded hands at $0.54 as of press time, falling 18% after the show began at 11:30 p.m. New York time. On a 24-hour basis, it was down 24%.
Dogecoin, a cryptocurrency Musk is fond of tweeting about, has gone on a tear this year, up more than 130-fold.
From Sunday through Saturday evening, just before the show started, the DOGE price had jumped 73%, ostensibly on speculation that the joke token might get a boost from Musk’s appearance on SNL.
Barry Silbert, the founder of Digital Currency Group (DCG), disclosed Saturday that the company is betting dogecoin’s price will fall. DCG is the parent company of CoinDesk.
Many of the recent price pumps have been attributed to Musk: There is often a sharp increase in price immediately after he tweets about it. While the cryptocurrency was started as a joke, its rise this year has outstripped much of the broader digital-asset market. Bitcoin, for example, has doubled this year, so DOGE has gained some 65 times faster.
As a result, the Shiba Inu-represented crypto now has a market capitalization of more than $80 billion, roughly on par with France’s largest bank, BNP Paribas, despite there still being just a few outlets so far that accept DOGE for payment. Still, acceptance seems to be growing – like the National Basketball Association’s Dallas Mavericks, which accepts the cryptocurrency for merchandise.
Despite Musk’s Twitter support for doge, perhaps it’s telling that while Musk tweets about dogecoin often, he hasn’t actually put any of his company’s money in the cryptocurrency – unlike bitcoin. Musk’s Tesla put $1.5 billion in bitcoin on its balance sheet, later selling a scant $272 million during the first quarter of 2021.
Musk also warned his Twitter followers to “invest with caution” this week, saying crypto may be a fun speculation tool.
“People should not invest their life savings in cryptocurrency, to be clear,” Musk said. “I think that’s unwise.”
Dogecoin was invented as a joke, Musk reminded his fans.
