Investors went from optimistic to distraught within just a couple of hours.
Elon Musk has been a huge champion of the cryptocurrency Dogecoin which was originally created as a joke to rival Bitcoin while also paying homage to a loveable meme. Elon is certainly one of the most influential people in the world, albeit, he can come across as immature a lot of the time, and it leads to him doing more bad than good. This was definitely the case on Saturday as he appeared on SNL and even took part in a skit where he played the Dogecoin expert Lloyd Ostertag.
During the Weekend Update sketch, Elon was asked if Dogecoin was a "hustle" to which he replied "Yeah, it's a hustle. To the moon!" Elon's love for Dogecoin has always been scrutinized as a bit of a pump and dump scheme and those fears were put into practice as his words immediately led to a 35% drop for the coin. After achieving a huge rise up to 70 cents, the coin plummeted to 44 cents, and has since gone back up to 48.
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Dogecoin holders dumped their bags in fear of what could happen and now, those who have been holding onto their investment, are worried that the $1 goal set months ago, is no longer attainable. In investment terms, most people buy the rumor and then sell the news, which seems to have been the case with Elon's SNL appearance. Everyone bought in anticipation of what might happen, but eventually, the momentum wasn't strong enough to continue.
As for those who still have Dogecoin in their portfolio, it will be interesting to see if the Bulls come back in control and bring the coin to another new set of all-time highs.