Dogecoin tumbles after Elon Musk’s jokes about it on SNL



Maye Musk appeared at the end of her Tesla CEO son’s SNL monologue to ask what he got her for Mother’s Day.

“I’m thrilled for my Mother’s Day gift,” Maye Musk said. “I just hope it’s not dogecoin!”

“It’s true,” said Elon Musk. “Absolutely.”

After increasing the value of the cryptocurrency in the lead-up to Musk’s appearance at SNL, investors heavily sold the dogecoin after the Musks spoke about it on the show. Dogecoin was down 40%, trading as low as 44 cents early on Sunday. The cryptocurrency started at around 70 cents on Saturday and was selling for around 66 cents just before SNL aired at 11:30 p.m. ET.

Cryptocurrencies are notoriously volatile and dogecoin is in absolute break this year. It has grown over 12,000% since January and has gained 800% this month alone.

Musk has been dogecoin’s loudest and most prominent supporter. He frequently tweets about cryptocurrency, and just one of his bizarre tweets to his 50 million subscribers can send dogecoins soaring. This is what happened in April, when Musk tweeted “Doge barking at the moon” and shared a photo of a painting by Spanish artist Joan Miró, titled “Dog barking on the moon”.

Dogecoin started out in 2013 as a joke – a nod to the ‘doge’ meme that was all over the internet at the time. But that’s no longer a joke: it’s the fifth largest cryptocurrency in the world, with a market value just south of $ 70 billion, according to Coinbase.

Dogecoin and Tesla had both traded higher in anticipation of Musk’s SNL appearance. Futures contracts on Tesla were not trading on Saturday night during the show.

It is not known what motivated the sale of dogecoin. Maybe investors wanted Musk to say something more cryptocurrency-friendly. But more likely there was a “buy the rumor / sell the news” strategy, trying to capitalize on investors’ predictions coming true by selling high.

Dogecoin traded so actively that Robinhood announced early Sunday morning that it was having problems processing crypto transactions and was working to fix the problem.

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