Dogecoin Tumbles 40% After Elon Musk Appears on 'Saturday Night Live', Here is Why

Soon after Tesla Inc. chief executive Elon Musk appeared on 'Saturday Night Live' show, value of dogecoin tumbled 38.6 percent.

It was a disappointing day for those having high expectations on the value of dogecoin. The value of the cryptocurrency that was expected to soar to the moon suddenly tumbled and came down to 0.44 cents per coin. This sudden decrease is also linked to Tesla billionaire Elon Musk's appearance on the Saturday Night Live [SNL] show.

Earlier it was expected that with Musk's appearance on SNL and mentioning of dogecoin, the coin value would rally past $1. But instead the value tumbled and there was a 38.6 percent decrease from the previous day.

Elon Musk Miley Cyrus SNL Show
Elon Musk with Miley Cyrus on the Saturday Night Live Show. Twitter / Saturday Night Live

IDogecoin a Hustle?

In fact, just before Musk appeared on the SNL show, the price of dogecoin was 0.73 on May 8. There were reports that Musk, who calls himself dogefather [staunch supporter of dogecoin], will help increase the price up to 40 percent making the value of cryptocurrency reach up to $1.

But the value dropped as much as 29.5 percent immediately after Musk's SNL appearance. The Tesla chief hosted the show at 11.30 PM EDT on May 8. He co-hosted the show with co-hosts Michael Che and Colin Jost. It looks like Musk did his part as he spoke at the Weekend Update of the SNL show and reiterated that dogecoin's value will soar to the moon. But things started turning bad when at one point Musk said dogecoin was a "hustle."

When asked 'what is dogecoin', Musk replied, "It's the future of currency. It's an unstoppable financial vehicle that's going to take over the world." To this, cast member Michael Che countered, "So, it's a hustle?", and Musk replied, "Yeah, it's a hustle." And laughed.

Musk had also issued a warning a day before he appeared on the show about investing in cryptocurrency. "Cryptocurrency is promising [but] people must invest with caution, Musk had said. Musk had tweeted on May 6: "It should be considered speculation at this point. And so, you know, don't go too far in the crypto speculation..."

However, reports claim that on crypto data tracker, dogecoin has jumped more than 800 percent in April-May. Currently, dogecoin is the fourth-largest digital currency and has a market capitalisation of $73 billion.