Meme Cryptocurrency Dogecoin finally got its long-awaited reputation on Saturday night – but despite the hopes of the Hodlers, the immediate result was a violent dump.
Tesla CEO, first teased by entrepreneur and DOGE cheerleader Elon Musk in late April, mentioned the digital asset on live television tonight in his opening monologue to the sketch comedy show. The reference was a disposable line from Musk’s mother who joined him on stage and asked if her Mother’s Day gift would be Dogecoin; Musk replied that it would be.
In the minutes that followed, $ DOGE fell 25%, falling from $ 0.66 at the start of the show to $ 0.50. It has since recovered partially, trading at $ 0.52 at the time of publication.
SNL May 8th
– Elon Musk (@elonmusk) April 28, 2021
An hour before the episode began, DOGE was priced at $ 0.66, compared to an all-time high of $ 0.72. A couple of bearish headwinds may have shared responsibility for the withdrawal: Musk himself appeared to be trying to stay one step ahead of the hype, tweeted a tweet telling followers to “invest with caution” and a plethora of new data suggesting this out that many investors may get rolling your DOGE benefits from other large capitalization digital assets.
Cryptocurrency shows promise, but please invest with caution! https://t.co/A4kplcP8Vq
– Elon Musk (@elonmusk) May 7, 2021
In addition, Barry Silbert – founder and CEO of Digital Currency Group, the parent company of crypto investment vehicle company Grayscale – announced a public short on DOGE on the FTX exchange. In a series of follow-up tweets, he revealed that the position was $ 1 million and that any proceeds or remaining funds would be donated to charity upon completion of the short.
OK $ DOGE look it was fun. Welcome to Crypto!
But it’s time you converted your DOGE to BTC
[disclosure: we’ve gone short DOGE via https://t.co/s8Qde2Ub4Z]
– Barry Silbert (@BarrySilbert) May 8, 2021
(It’s unclear whether Silbert uses “we” to refer to the Digital Currency Group, one of their portfolio companies, or simply, and bizarrely, uses a plural pronoun to refer to himself.)
Nevertheless, many DOGE investors were hoping for a top-class shoutout on an important pop culture event. NBC, the studio behind SNL, chose to live stream the episode on Youtube for the first time, according to the Wall Street Journal.
Even a mention could have a significant impact on the price of DOGE: the meme currency has proven to be prone to price movements due to the positive social media volume, and several studies have shown that tweets from Musk often lead to a price spike. A mention on an even bigger platform should potentially result in even bigger wins.
Alameda Research dealer Sam Trabucco (who said in a previous tweet he was studying “the typical SNL episode structure to understand when a DOGE mention is most natural”) speculated that this was a joke or that the mention did not come in Musk’s opening monologue that it would be “all over”.
My instinct is, if it’s not in his monologue, it’s all over.
– Sam Trabucco (@AlamedaTrabucco) May 8, 2021
Despite arriving during the monologue, the dealers still reacted negatively. It remains to be seen whether a DOGE-centric sketch later on on the show can perhaps reverse the fate of the speculative asset.