Hours before Elon Musk’s appearance on Saturday Night Live, the Tesla CEO seemed intent on cooling down the hype he’d sparked over the meme cryptocurrency Dogecoin (DOGE).
Months of carefree construction resulted in a sobering punchline on Thursday when Musk reminded TMZ viewers that cryptocurrency investments were still speculative. When Musk replied whether he thought Dogecoin had become less valuable due to its inflationary offering, he admitted it was, adding:
“I think people shouldn’t invest their savings in cryptocurrency to be clear. I think that’s unwise. “
Musk said he thought there was a possibility that cryptocurrency could become the major currency on earth, but knowing which one it would be remained a guesswork.
“There’s a good chance that crypto is the earth’s future currency … and then it’s like, which one will it be? And maybe there will be several. But it should be considered speculation at this point,” Musk said .
Dogecoin became one of the crypto stories of the year after Elon Musk decided to take over an already stray joke coin. Doge’s subsequent 14,000% surge in 2021 was partly aided by Musk’s social media posts and traders’ desire to pump a near-dead coin in a similar fashion to stocks like GameStop and AMC.
Even as Musk cautioned investors to be cautious, DOGE’s dollar value rebounded 23% early Friday morning after losing a quarter of its value to $ 0.69 after rising mid-week. The coin price rose from $ 0.52 to $ 0.64 in the hours immediately after Musk posted the TMZ video on Twitter, along with the warning, “Cryptocurrency is promising, please invest with caution!”
However, Musk suggested that the most entertaining outcome might be the one that ultimately prevails. Regarding Dogecoin, Musk said:
“Fate loves irony. What would be the most ironic result? That the currency that was invented as a joke actually becomes real currency. “
Reporters bombarded Musk with allegations that his tweets had spiked their Dogecoin investments – a common trend backed by more than a certain amount of evidence.
Musk had previously claimed he would welcome any official investigation into the impact of his tweets on the price of Dogecoin, but when asked about the potential of seeing another price-moving tweet from him, the Tesla CEO responded negatively.
“No,” said Musk, getting into his car. “Well it is,” he added. “Don’t take too much risk with crypto.” And so he was gone.