Tesla CEO Elon Musk urged people to be wary when investing in cryptocurrencies Friday as his upcoming appearance on Saturday Night Live spurred investors to pile into ‘joke’ cryptocurrency dogecoin this week, leaving it the fourth most valuable cryptocurrency as its value soared to new record highs.
Writing on Twitter, the billionaire crypto enthusiast said that while “cryptocurrency is promising” people should “invest with caution.”
Musk, whose tweets and comments cause seismic shifts in crypto markets, is a long-time proponent of digital currencies and has invested $1.5 billion in bitcoin through Tesla.
In a linked video from February, Musk said there is a “good chance crypto is the future currency of Earth,” emphasizing that it remains speculative at the moment.
Musk stressed that it would be “unwise” for people to invest their life savings in cryptocurrencies.
Cryptocurrencies are a notoriously volatile asset class. Dogecoin, a favorite of Musk, is particularly volatile due to its popularity among at-home traders, many using Reddit forums to inform their trading and its dual identity as a meme. Some of the biggest spikes for dogecoin have come after the token was mentioned by Elon Musk on Twitter, often accompanied by memes. Its value soared to new highs of 69 cents this week as traders continue efforts to take “doge to the moon,” code for $1 a token.
Musk also wrote he is looking for a “shiba pup.” Dogecoin is inspired by the doge meme of a Shiba Inu dog.
Dogecoin Rockets Towards ‘The Moon’ — Meme Cryptocurrency Nears 70 Cents As Rally Continues (Forbes)
‘Joke’ Bitcoin Rival Dogecoin Found To Have ‘Remarkably Strong Fundamentals’ As The Price Hurtles Toward $1 And A $100 Billion Market Cap (Forbes)
Dogecoin Blasts Through 50 Cents Barrier To New All Time High (Forbes)
‘It’s Doge Time’: Dogecoin Surges As Reddit Traders Push To Make It The Crypto GameStop (Forbes)
Dogecoin Is Soaring—Near 10 Cents For First Time (Forbes)
‘I Am Become Meme, Destroyer Of Shorts’: Dogecoin Soars Again As Elon Musk Returns From Self-Imposed Twitter Exile (Forbes)