News
Dogecoin Down Nearly 40% From Record Value After Elon Musk ‘SNL’ Appearance
May 9, 2021
May 8, 2021
Dogecoin skyrocketed to a new high of nearly 75 cents Friday afternoon after Elon Musk tweeted a promotional image for his upcoming appearance on Saturday Night Live this weekend photoshopped to include an image of the meme-famous Shiba Inu dog that the cryptocurrency is based on, with the text, “Guest starring …”
Dogecoin spiked from around 65 cents before the 5:05 p.m. tweet to just under 75 cents by 6:40 p.m.
Traders have poured money into Dogecoin this week ahead of Musk's SNL appearance, in a bet Musk will have a skit featuring Dogecoin and drive the price even higher.
Started as a joke, Dogecoin has surged to become the fourth most valuable cryptocurrency, with its total circulation approaching $100 billion in value.
Over the past week alone, Dogecoin more than doubled in value, and it's up nearly 1,000% over the past month.
Musk issued a word of warning in an early Friday morning tweet, saying, "Cryptocurrency is promising, but please invest with caution!" Many are concerned Dogecoin's price has ballooned due to rampant speculation, and its model of having an unlimited currency supply makes it unsustainable.
Most of the biggest spikes in Dogecoin's price appear to be directly in response to tweets from Musk. In January, a tweet from Musk mentioning Dogecoin caused a 50% price spike in a little over an hour. His tweets about Dogecoin recently, including one last week where simply said "The Dogefather" followed by "SNL May 8" have continued to fuel the surge.
Traders, many of whom communicate through Reddit, have vowed to take Dogecoin "to the moon," meaning $1 a token.
Source: Forbes
Image Source: Getty Images
