The price of dogecoin fell by as much as a third on Sunday, after billionaire Elon Musk, one of its biggest supporters, appeared to call the virtual currency a “hustle” while hosting Saturday Night Live.
Cryptocurrency watchers had high expectations of what Tesla CEO and cryptocurrency enthusiast Musk he called himself the “Dogefather”I’d say while hosting the American comedy sketch show, and dogecoin had risen in anticipation.
However, Musk’s appearance had the opposite effect to that expected by investors.
Dogecoin, a bitcoin-like cryptocurrency that was started as a hoax, fell 35% at one point to hit $ 0.47 (£ 0.34) against the dollar, according to data website Coindesk. By Sunday night (UK time) it had rallied slightly to $ 0.49, although it was well below the $ 0.68 it hit before the weekend after growing interest from investors. investors.
The value of the digital currency began to drop dramatically during the show, which was broadcast internationally on YouTube for the first time.
During the broadcast, Musk introduced viewers to his mother, Maye, who said she was excited to receive a Mother’s Day gift from her son, but added, “I just hope it’s not Dogecoin.”
Elsewhere on the show Musk was asked, “What is dogecoin?” He replied: “It is the future of the currency. It is an unstoppable financial vehicle that is going to take over the world ”.
When a cast member, Michael Che, responded, “So it’s a hustle?” Musk replied, “Yeah, it’s a hustle,” and laughed.
The segment ended with Musk howling “to the moon,” a phrase used online by investors trying to talk about the value of their assets, indicating the desired direction of travel for their investments.
Musk also told viewers that he was “the first person with Asperger’s” to host the US sketch show, although Dan Aykroyd, the former cast member and former host, has said in the past that he has Asperger syndrome.
Opening the show, the billionaire talked about how he sometimes posted strange comments on his social media, saying, “To anyone I’ve offended, I just want to say, ‘I reinvented electric cars and I’m sending people to Mars in a spaceship, do you? you also thought he was going to be a normal and laid back guy
Dogecoin has been garnering attention as it has gained favor with retail investors and won over high-profile fans, including rapper Snoop Dogg and Kiss bassist Gene Simmons.
The currency is based on a Internet even – a humorous phrase or image online – in this case, a shiba inu dog.
Like other cryptocurrencies bitcoin and ether, it has enjoyed a stratospheric surge in recent months and rose 14,000% between January and early May.
Newbie investors’ appetite for speculating on certain stocks, as well as cryptocurrencies, has been growing in recent months, prompting analysts to warn that people could end up losing large amounts of money.
Digital currencies have attracted more attention from both investors and financial institutions in recent months. They have soared to multiple all-time highs, with bitcoin briefly reaching $ 63,000 last month, but its rollercoaster ride has also included significant one-day drops.
Their volatility and vulnerability to theft or hacking have led regulators, including the Bank of England, to view cryptocurrencies with skepticism, even as they are gaining more widespread acceptance as a payment method.
The United States Treasury has proposed cracking down on digital currency transfers to prevent their use in money laundering or other illegal activities.
Cryptocurrencies have also been increasingly criticized for their environmental impact, given the enormous amount of energy required to create them.
Even after the weekend dips, dogecoin, once described as the “crypto of the people” by Musk, is still the fourth-largest digital currency after bitcoin, ethereum and binance, according to data website CoinMarketCap.
George is Digismak’s reported cum editor with 13 years of experience in Journalism