DOGE Community Left Confused as Coin Dipped Amid Musk’s SNL Sketch

On May 8th, Elon Musk, self-proclaimed crypto “Dogefather”, led SNL’s comedy sketch show. As one of the main themes of his performance was DOGE, many people believed that this would send it soaring even further. But to the amazement of fans, the coin instead plummeted, falling from $0.72 to $0.43 (a 40% drop in value). This has left users asking why.

Price of Dogecoin Plummets as Musk Appears on SNL

One possible reason for DOGE’s fall is that fans were disappointed that Elon Musk did not speak positively about it. In fact, Musk’s ‘skit’ essentially made fun of DOGE. Instead of singing its praises, Musk failed to portray Dogecoin in any sort of positive light, calling it a “hustle”, and then subsequently chanting for it to “go to the moon!”.

Of course, Musk cannot provide unsolicited financial advice on television. But even if he were unafraid of this, there would be very little he could sufficiently do to promote Dogecoin. It is, afterall, a fundamentally lackluster crypto.

Dogecoin’s only unique selling point is that it represents a dated, 2013 meme. It is not the fasted, cheapest, or most robust cryptocurrency on the market, and it does not offer any distinct or defining qualities. Its rise has been created by nothing more than hype, often instigated by Musk himself. This is visible by looking at his Twitter account and seeing the sheer number of Dogecoin-related tweets he has sent throughout this year and late last.

It would appear that while Elon Musk certainly helped the coin reach its intense highs, his SNL appearance may have also been its downfall. Fans might have expected him to speak about its fundamentals, or its pros, or at least shine some positive light. But this was always impossible as there are no pros to this coin, and its fundamentals are poor.

DOGE Fans Were Confused

Many DOGE fans bought the cryptocurrency before Elon Musk’s SNL appearance, expecting it to soar afterwards. However, the opposite happened, leaving many at a loss—and not just financially.

What ultimately unfolded in Dogecoin communities was worry and panic. Take a look at this screenshot from the r/Dogecoin subreddit:

People were frantically telling each other to hold onto their funds and refrain from panic selling. Some have also convinced themselves that this plummet is caused by “whales” who are trying to manipulate the price. Ironically, they might be right, as Elon Musk could actually be a whale himself, and his actions clearly had consequences within the market.

This would certainly constitute securities fraud, so it’s quite reasonable to assume Musk himself is not a whale. 

Of course, while Dogecoin’s activity over the last two days has been worrisome for fans, it cannot be ignored that its numbers for this year are still impressive. It is still up 12,400% from January 1st, 2021. However, this recent plummet could be a sign of things to come for the coin. 

If DOGE’s most high-profile supporter cannot not explain its benefits, then it is unlikely anybody else can.  

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What did you make of Elon Musk’s SNL performance, and do you think it was good for crypto as a whole? Let us know in the comments.