Billionaire tycoon Elon Musk may be a strong advocate for Dogecoin. However he still wants you to invest in the cryptocurrency carefully.
Above all, Elon Musk, the CEO of Tesla and SpaceX, has been a key proponent in the latest surge of interest in dogecoin. According to analysts, as he consistently tweets about the cryptocurrency.
In the video, he does add that, “Don’t invest your life savings into cryptocurrency. That’s unwise.”
Moreover, ahead of his appearance on “Saturday Night Live” on NBC on May 8, Musk had a new message for his 53 million Twitter followers.
Elon Musk warned his followers
Dogecoin started as a joke. In 2021, however, the joke appears to have turned on those who didn’t take the meme cryptocurrency seriously. The meme-cryptocurrency Elon Musk wouldn’t stop tweeting about reached an all-time high in mid-April. Crossing 10 cents for the first time. The market cap of DogeCoin — which started as a joke and is literally classified as “a meme coin” — is currently over $74.13 billion.
This is the highest-ever for the cryptocurrency and the result of a semi-ironic movement involving thousands of buyers. Tens of thousands of online posters, and the world’s richest man, Elon Musk.
In early January, each token was worth less than one cent. In late January, when both the GameStop and DogeCoin movements hit their stride. The value of DogeCoin shot up to 7.5 cents, well over a 10-magnification, before sliding down to 2.5 cents. The coin has spent the past few months in the three- to the seven-cent range.
Perhaps the most interesting part of the interview, however, is toward the end, when a reporter points out that Dogecoin spiked days after Musk tweeted about it. The reporter asks whether the billionaire will tweet about the cryptocurrency again, but Musk shoots the idea down.
“Listen, don’t take too much risk on crypto,” he says before driving off.
Still, other investors, like Musk, have issued warnings about Dogecoin, arguing that intense interest could lead to a bubble in the cryptocurrency market.
The Bottom Line
“Dogecoin’s rise is a classic example of greater fool theory at play,” David Kimberley, an analyst at the U.K. investing app Freetrade, told CNBC recently. “When everyone is [buying Dogecoin], the bubble eventually has to burst, and you’re going to be left short-changed if you don’t get out in time. And it’s almost impossible to say when that’s going to happen.”
Elon musk mentioned in the one recent video
“I think that’s unwise,” he says. “But if you want to speculate. There’s a good chance that crypto is the future currency of the Earth.”