A dog-eat-dog world: the rise and fall and rise of Dogecoin

The Elon Musk-endorsed cryptocurrency slumped following the Tesla CEO’s SNL appearance. Was the dip a blip in Doge’s rocket trip to the moon? Or something more serious?

On Saturday 8th May, Tesla CEO Elon Musk made history as the first person with Asperger’s syndrome to host Saturday Night Live. This announcement, made during his opening monologue, was met with enthusiastic applause by the studio audience.

Unfortunately, not every aspect of his hosting gig met with the same reaction. Towards the end of his opening skit Musk’s mother, Maye Musk appeared to ask what her son had got her for Mother’s Day, joking “I just hope it’s not Dogecoin!”

“It is,” her son replied. “It sure is.”

Dubbed ‘The Dogefather’ for his vivacious backing of the cryptocurrency, many predicted that Musk would use his SNL appearance to talk up the coin and that this in turn would see its value rocket.

Unfortunately, the opposite happened. In a later segment in the SNL broadcast, Musk appeared again, playing a character struggling to explain what Dogecoin is. In the end, he admitted it’s “a hustle”.

Whether they missed the joke or simply didn’t find it funny, investors reacted adversely to Musk’s appearance and began selling off Dogecoin. By Sunday it hit a low of just 44 cents, down from 70 cents which it was trading at when the market opened on Saturday (there was a dip to 66 cents before SNL aired at 11.30pm E.T.).

Having dropped by 29.5 percent during Musk’s appearance to stabilise at a loss of 40 percent by Sunday, the failed plug demonstrates just how volatile cryptocurrencies can be.

Elon Musk's SNL appearance drastically dented Dogecoin's rise

But, at the same time, even Elon Musk himself may be unable to disrupt Dogecoin’s stratospheric rise. Writing for CNN Business, David Goldman noted that “Dogecoin has been on an absolute tear this year.”

He isn’t wrong. The currency is up more than 12,000 per cent since January and, according to Coinbase, is now the fifth largest cryptocurrency in the world, with a value just under $70 billion. Which isn’t at all bad for something which began as a joke.

So, what’s next for Dogecoin, and do you need to invest?

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