The Tesla CEO, Elon Musk, appeared intent on cooling the flurry of hype he had created around the meme cryptocurrency Dogecoin (DOGE), hours ahead of his appearance on Saturday Night Live.
On Thursday, as Musk reminded his Twitter followers that cryptocurrency investments remained speculative, months of light-hearted build-up led to a sobering punchline. Also, Musk 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 and which he reposted, because the tweet was made on TMZ interview in February.
Flowing from the above, Musk stated that the aforementioned tweet was the case at that time and that crypto investors should not invest their live savings in cryptocurrency, which is unwise.
A chance that cryptocurrency could become the primary currency used on earth, but knowing which one it would be remained guess work, according to Elon Musk.
“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.
Dogecoin became one of the crypto stories of the year following Musk’s decision to adopt what was already a joke coin gone astray. Doge’s subsequent 14,000% surge in 2021 was helped in part by Musk’s social media posts and the desire by traders to pump a near-dead coin in a manner similar to stocks like 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!”