Tesla CEO Elon Musk appeared on NBC's "Saturday Night Live" (SNL), where he jokingly referred to Dogecoin as a "hustle," sending the cryptocurrency into a tailspin.
The remark caused Dogecoin to plummet by over 34%, dragging down Bitcoin, Ethereum, and other cryptocurrencies in its wake. Amid the freefall, Musk attempted damage control on Twitter—announcing that SpaceX would launch a Dogecoin-funded mission to the moon in 2022 and accept the meme coin as payment.
Dogecoin exemplifies the volatile frenzy of cryptocurrency. Created in 2013 as a satirical take on Bitcoin, it surged over 13,000% in 2021, fueled largely by Musk’s endorsements.
What Exactly Did Musk Say on SNL?
During the comedy sketch, Musk initially praised Dogecoin as "the future of currency" and "an unstoppable financial vehicle." When the host quipped, "So it’s a hustle?" Musk chuckled and replied, "Yeah, it’s a hustle."
Despite the humorous context, the market reacted violently.
👉 Why Dogecoin’s volatility matters for crypto investors
Musk’s Influence on Dogecoin
Musk’s tweets have single-handedly propelled Dogecoin’s rallies and crashes:
- February 2021: His tweets spiked Dogecoin’s value so sharply that trading platform Robinhood crashed.
- April Fools’ Day: Musk pledged to "literally put a literal Dogecoin on the literal moon," triggering another surge.
By May 2021, Dogecoin had morphed from a joke into the fourth-largest cryptocurrency by market cap.
Warnings from the "DogeFather"
Musk—self-dubbed "DogeFather"—has repeatedly cautioned investors:
- No supply cap: Unlike Bitcoin (capped at 21M coins), Dogecoin releases 5B new coins annually, diluting its value.
- Risk disclaimer: "Never invest your life savings in crypto," Musk advised, though he acknowledged its speculative appeal.
FAQs
1. Why did Dogecoin crash after SNL?
Musk’s "hustle" comment, even in jest, eroded investor confidence, causing panic selling.
2. How did Musk try to stabilize the price?
By announcing SpaceX’s lunar Dogecoin mission and accepting it as payment.
3. Is Dogecoin a good investment?
Experts warn its inflationary model and meme origins make it highly speculative.
👉 Top 3 lessons from Dogecoin’s rollercoaster ride
Key Takeaways
- Musk’s words swing crypto markets—investors beware.
- Dogecoin’s lack of scarcity contrasts sharply with Bitcoin’s deflationary design.
- Crypto hype often outweighs fundamentals; DYOR (Do Your Own Research).