Dogecoin loses a third of the price after Elon Musk called it a “hustle” on “SNL”.
© Reuters. Small toy figures can be seen on the cryptocurrency display with the Dogecoin logo in the background in this illustration image taken on April 20, 2021. REUTERS / Dado Ruvic / Illustration
By Alden Bentley and Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) Dogecoin lost more than a third of its price on Sunday after Tesla (NASDAQ 🙂 boss and cryptocurrency backer Elon Musk called it during his guest host spot https://twitter.com/ “Hustle and bustle”. cryptoafricaedu / status / 1391373668744372225? s = 21 on the comedy sketch TV show “Saturday Night Live”.
Dogecoin was listed on the Binance crypto exchange https://www.binance.com/en/trade/DOGE_USDT?type=spot at just $ 0.416, a 36% decrease from the pre-show level by 0, Equal to $ 65.
Billionaire Tesla Inc’s executive director hosted the SNL show on Saturday at 11:30 p.m. EDT (Sunday at 3:30 p.m. GMT).
Cryptocurrency enthusiasts have been curious to see what he would say for days after his tweets this year turned the once obscure digital currency that started out as a social media joke into a speculator’s dream.
When asked what Dogecoin is, Musk replied, “It is the future of currency. It is an unstoppable financial instrument that will take over the world.”
When one show performer, Michael Che countered, “So it’s a rush?” Musk replied, “Yeah, it’s a rush” and laughed.
Musk is the rare business mogul who was asked to host the venerable comedy television show. His appearance on the iconic late-night show puts Musk back in the spotlight as Tesla’s shares lose steam after last year’s monster rally.
The unconventional CEO has posted numerous comments on cryptocurrencies on Twitter and regularly criticized cash for negative real interest rates.
“Only a fool wouldn’t look anywhere else,” he said in February.
His cryptic tweets “Doge” and “Dogecoin is the people’s crypto” this month started a rally in Dogecoin – created as a parody of mainstream Bitcoin and Ethereum.
On Thursday, Musk tweeted, “Cryptocurrency shows promise, but please invest with caution!” with a video clip attached where he said, “It should be considered speculation at this point.”
In the video, however, he also said that cryptocurrency has a “good chance” of becoming what he called “the future currency of the earth”.
Some financial commentators asked if it was up to Musk to comment on the cryptocurrency as it had the power to shift its price.
“I think he’s having a lot of fun … he can say anything he wants about Dogecoin or cryptos and be aware that only he is saying something that will move the price,” said James Angel, associate professor at McDonough Georgetown University School of Business specializing in financial markets and cryptocurrency.
“Anyone who wants to play the Elon Musk game should be ready to lose all their money.”
The flood of sales appeared to be causing problems for popular retail platform Robinhood, which tweeted early Sunday that some customers had “intermittent problems” trading cryptocurrencies due to the high trading volume and volatility.
The company later said the issues had been resolved and customers affected by the downtime would be contacted.
On the CoinGecko.com crypto data tracker, Dogecoin is up more than 800% in the last month and is now the fourth largest digital currency with a market cap of $ 73 billion. It hit a record high above $ 0.73 on Thursday.
Tesla said in February it bought $ 1.5 billion worth of Bitcoin and will soon accept it as payment for its electric cars. This is a big step towards mainstream adoption that has brought Bitcoin to a record high of nearly $ 62,000.
Tesla stock closed 1.3% higher at $ 672.37 on Friday.
Some crypto pundits said the Dogecoin sell-off on Sunday was driven by speculation and that Musk hadn’t hurt its long-term prospects.
“Doge’s long-term fundamentals are intact. This is a buying opportunity,” said Jehan Chu, managing partner of the Hong Kong blockchain venture capital firm Kenetic Capital.
“It’s a real social currency – that’s its value.”