Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dogecoin loses third of price after Elon Musk calls it a 'hustle' on 'SNL'

EconomyMay 09, 2021 06:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3/3 © Reuters. Small toy figures are seen on the cryptocurrency representation with Dogecoin logo in the background in this illustration picture taken April 20, 2021. REUTERS/Dado Ruvic/Illustration 2/3

By Alden Bentley and Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) -Dogecoin lost more than a third of its price on Sunday, after Tesla (NASDAQ:TSLA) chief and cryptocurrency supporter Elon Musk called it a 'hustle' during his guest-host spot https://twitter.com/cryptoafricaedu/status/1391373668744372225?s=21 on the "Saturday Night Live" comedy sketch TV show.

Dogecoin was quoted as low as $0.416 on crypto exchange Binance https://www.binance.com/en/trade/DOGE_USDT?type=spot, down 36% from levels around $0.65 before the show. It retraced some of that move later on Sunday, and was last trading around $0.569.

The billionaire Tesla Inc chief executive hosted the SNL show at 11:30 p.m. EDT on Saturday (0330 GMT on Sunday).

Cryptocurrency enthusiasts had for days been eager to see what he would say, after his tweets this year turned the once-obscure digital currency, which began as a social media joke, into a speculator's dream.

Asked 'what is dogecoin', Musk replied, "It's the future of currency. It's an unstoppable financial vehicle that’s going to take over the world."

When a show cast member Michael Che countered, "So, it's a hustle?", Musk replied, "Yeah, it's a hustle," and laughed.

Musk is the rare business mogul to have been asked to host the venerable comedy TV show. His appearance on the iconic late night show puts Musk back in the spotlight just as Tesla's stock is losing steam following last year's monster rally.

The unconventional CEO has posted numerous comments about cryptocurrencies on Twitter and criticized regular cash for having negative real interest rates.

"Only a fool wouldn't look elsewhere," he said in February.

His cryptic tweets "Doge" and "Dogecoin is the people's crypto" that month kicked off a rally in dogecoin - created as a parody on the more mainstream bitcoin and ethereum.

On Thursday, Musk tweeted: "Cryptocurrency is promising, but please invest with caution!" with a video clip attached in which he said, "it should be considered speculation at this point."

But he also said, in the video, that cryptocurrency has a "good chance" of becoming what he called "the future currency of the Earth."

Some financial commentators questioned whether it was responsible for Musk to comment on the cryptocurrency, given he has the power to move its price.

"I think he's having a lot of fun ... He can say anything he wants about dogecoin or cryptos fully aware that just him saying something moves the price," said James Angel, associate professor at Georgetown University’s McDonough School of Business, who specializes in financial markets and cryptocurrency.

"Anyone who wants to play the Elon Musk game should be prepared to lose all their money."

The flood of selling appeared to cause problems for popular retail trading platform Robinhood, which tweeted early on Sunday that due to high trading volume and volatility some customers had experienced "intermittent issues" trading cryptocurrencies.

The company later said the issues had been resolved and that it would contact customers affected by the downtime.

On crypto data tracker CoinGecko.com, dogecoin has jumped more than 800% over the last month and is now the fourth-largest digital currency, with a market capitalization of $73 billion. It hit a record high Thursday above $0.73.

Tesla said in February it bought $1.5 billion worth of bitcoin and would soon accept it as a form of payment for its electric cars, a large stride toward mainstream acceptance that sent bitcoin soaring to a record high of nearly $62,000.

Tesla shares closed 1.3% higher at $672.37 on Friday.

Some crypto experts said that Sunday's dogecoin selloff was driven by speculation and that Musk had not hurt its long-term prospects.

"Long term fundamentals of doge are intact. This is a buying opportunity," said Jehan Chu, managing partner at Hong Kong blockchain venture capital firm Kenetic Capital.

"It’s a true social currency - that’s its value."

Dogecoin loses third of price after Elon Musk calls it a 'hustle' on 'SNL'
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (12)
Chris Sundo
Chris Sundo May 10, 2021 2:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
LOL re '..It’s a true social currency - that’s its value..' -- Talk to marijuana millionaires when Canada legalized its pot. That's when pot stocks had social currency too, with stored value. But the social value held for only for so long. -- What is a Social Value? It's just someone's opinion. Let's wait for reality to buy Teslas with ANY bitcoin/Alt-coin. Only Musk would carry such risks of wildly fluctuating prices tied to his flagship company
Si Gi
Si Gi May 10, 2021 12:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Anyone who wants to play the Elon Musk game should be prepared to lose all their money." Best line. Period.
Chris Sundo
Chris Sundo May 10, 2021 12:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's the truth. The same truth as when you sign on your broker's fine print: that there's no predicting the future and you must be prepared to lose it all, including the Alt-Coin exchange's CEO cleaning out all his customer's deposits at the peak in December 2018 while he and his founding biz partner mysteriously got lost in India; remember Mr. Gerald Cotton, whose founding business partner was a convicted US felon who specialized in identity theft and Mr. Cotton's wife who refused to aid the investigation into the disappearance of her husband in India with 215Million dollars of Alt-coin? Many ppl had hundreds of K of tax-paid dollars who practically went bust, just like the Turkish Alt-coin exchange owner recently took off with hundreds of millions of customers' deposits: Murphy's Law: If it CAN happen it sooner or later will.
Adam Paine
Adam Paine May 10, 2021 12:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
everything is "meme"
Ron Love
Ron Love May 09, 2021 5:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lmao, that was a joke on a comedy sketch show.
Charles Sims
Charles Sims May 09, 2021 5:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is an investing site, do not pretend to be so stu.pid to think price dumped because of him saying that. The price dumped as soon as SNL started. The price pumped in anticipation of this. DOGE has absolutely no utility or value. This was classic buy the rumor, sell the news. There is a reason that DOGE is being marketed by billionaire early investors to retails new to the market, while people familiar with the market are avoiding.
Barani Krishnan
Barani Krishnan May 09, 2021 5:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is a Reuters story; we @ Investing didn't write this. Surely you're smarter than what you appear to be, not to notice that.
CHAD TENDIES
CHAD TENDIES May 09, 2021 4:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Enron Musk at it again
Raimbek Suleimenov
Raimbek Suleimenov May 09, 2021 1:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If u check the vollume of trade, u can see that the selling point from 0.73 to 0.41 had a small volume, that means that the shark made the price cheaper, and at the lowest we can see a huge rebuy, at 0.41 which could be the same shark who is scalping the market of dogecoin, it will reach a dollar at least
Forex Harbingers
Forex Harbingers May 09, 2021 11:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Interestingly enough, the $22 billion doge whale hasn't let go of their coins. So, a buying opportunity might be right.
danny Levine
danny Levine May 09, 2021 11:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Elon is such a fraud
perplexed76 .
perplexed76 . May 09, 2021 4:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
buy immidiately, tomorrow crypto gamblers will "understand" that hustle actually a good definition.
Jan Buyle
Jan Buyle May 09, 2021 3:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I hope that it starts to be clear to all of you: Musk is a market manipulator. And he does that to boost his own profit, not yours!
Jacob Steinschlag
Jacob Steinschlag May 09, 2021 3:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
he has way enough money lol. He's just too famous to not have any influence on the stock and crypto market. At this time, anything he says causes movement in the market. He can not say nothing, right? Cmon man.
Rob Banks
Rob Banks May 09, 2021 3:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't own any cryto but Musk was literally on TV, how can you accuse him? Any huge market players could have easily dumped it so dogcoin dropped to scare people off
Joshua Harclerode
Joshua Harclerode May 09, 2021 3:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jan you a joke and a hater. Of course anything Musk says will affect things. Whats he supposed to do, not speak? C’mon man.
perplexed76 .
perplexed76 . May 09, 2021 2:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Musk empire will fall soon together with his crypto"future"
Stephan Bull
Stephan Bull May 09, 2021 2:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Crypto is the future but you don’t know yet!just get more information about crypto world and you will see
Adam Ryan
Adam Ryan May 09, 2021 2:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stephan Bull  probably govt will make own digital money... they will not lets crypto takeover their power
Abdelraziq Abuaisha
Abdelraziq Abuaisha May 09, 2021 2:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sooner than they can even think, these bubbles will cause a lot of damage ,, anyway a man harvests what he plants
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email