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Musk appeared to calm the excitement around Dogecoin by implying that the fate of the meme coin was now in the hands of the gods.
Elon Musk seemed bent on dampening the whirlwind of excitement he had generated around the meme cryptocurrency Dogecoin just hours before his show on Saturday Night Live (DOGE).
Months of light-hearted build-up led to a sobering punchline on Thursday, as Musk reminded his Twitter followers that cryptocurrency investments remained speculative. Musk reposted a TMZ interview from February, in which he responded to whether he thought Dogecoin was made less valuable by the fact of its inflationary supply. Musk conceded that this was the case at the time, adding:
“I think people should not invest their life savings in cryptocurrency, to be clear. I think that’s unwise.”
Musk said that he believed cryptocurrency had a chance of being the primary currency used on the planet, but he did not know which one.
“There’s a good chance that crypto is the future currency of earth… and then it’s like: Which one is it gonna be? And maybe it will be multiple. But it should be considered speculation at this point,” Musk said at the time.
Following Musk’s decision to embrace what was then a prank coin gone astray, Dogecoin became one of the year’s biggest crypto tales. Doge’s eventual 14,000 percent rise in 2021 was aided in part by Musk’s social media updates and traders’ ability to pump a near-dead coin in a manner comparable to stocks such as GameStop and AMC.
Even as Musk reminded investors to be wary, the dollar value of DOGE rebounded 23% early on Friday morning, after losing a quarter of its value following the mid-week surge to $0.69. The coin price jumped from $0.52 to $0.64 in the hours immediately after Musk posted the TMZ video on Twitter, accompanied by the warning: “Cryptocurrency is promising, but please invest with caution!”
However, Musk proposed that the most entertaining outcome could be the one that ultimately takes hold. In reference to Dogecoin, Musk said:
“Fate loves irony. Like, what would be the most ironic outcome? That the currency that was invented as a joke in fact becomes the real currency.”
Reporters barraged Musk with allegations that his tweets caused their Dogecoin investments to rise — a general trend that is supported by more than a smidgeon of facts.
Musk had previously said that he would support any official enquiry into the impact of his tweets on the price of Dogecoin, but when asked whether there was any chance of another price-moving tweet from him, the Tesla CEO replied in the negative.
“No,” said Musk, getting into his car. “Well, that’s it,” he added. “Don’t take too much risk on crypto.”