Hours before Elon Musk appears on Saturday Night Live, the Tesla CEO seemed determined to cool the flurry of hype he had previously created around the meme crypto Dogecoin (DOGE). He seemed to cool the hype of the coin while suggesting that DOGE’s fate was now in the hands of the gods.
Several months of light-hearted build-up led to a sobering punchline on May 6, as Elon reminded his Twitter followers that crypto investments are still speculative. He even reposted a TMZ interview from February where he responded to whether he believed Dogecoin was made less valuable by the fact of its inflationary supply.
The Tesla CEO conceded that it was the case at the time, adding:
“I think people should not invest their life savings in cryptocurrency, to be clear. I think that’s unwise.”
Musk was quick to say that there was a chance that crypto could turn out to become the primary currency used on earth, but knowing which one it would eventually be remained to be guesswork. At the time he said:
“There’s a good chance that crypto is the future currency of earth… and then it’s like: Which one is it gonna be? And maybe it will be multiple. But it should be considered speculation at this point.”
Dogecoin became one of the crypto stories of the year after Musk decided to adopt what was already a joke coin gone astray. Dogecoin’s subsequent 14,000% surge in 2021 was powered partially by Musk’s social media posts and the desire by the traders to pump a near-dead coin in a manner that is similar to stocks like AMC and GameStop.
Even as Elon Musk reminded investors to be quite wary, the dollar value of Dogecoin rebounded by 23% early on May 7, after it lost 25% of its value after the mid-week surge to peak at $0.69. The coin price spiked from $0.52 to $0.64 in the hours after Musk posted the TMZ video on Twitter. He accompanied the video with a warning:
“Cryptocurrency is promising, but please invest with caution!”
Nevertheless, Musk said that the most entertaining outcome may be the one that eventually takes hold. While referring to Dogecoin, he said:
“Fate loves irony. Like, what would be the most ironic outcome? That the currency that was invented as a joke in fact becomes the real currency.”
Reporters confronted Musk with allegations that his tweets had caused their Dogecoin investments to surge, a general trend that is backed by at least a degree of evidence.
Elon Musk had previously alleged that he would welcome any official investigation into any effect that his tweets may have on the price of Dogecoin. But, when asked about the potential to see one more price-moving tweet from him, the Tesla CEO responded in the negative.
“No,” said the Tesla CEO said, getting into his car. “Well, that’s it,” he added. “Don’t take too much risk on crypto.”