Dogecoin plummets during Elon Musk's SNL appearance

Lately, Elon Musk has been able to shift cryptocurrency markets by waving his hands. Photo / Youtube

Anybody following cryptocurrency will know drastic dips are part and parcel for online markets, but a sudden 25 per cent drop in Dogecoin was enough to get investors more than a little nervous on Sunday afternoon.

The meme-driven cryptocurrency, first introduced in 2013 as a joke, saw a massive surge this month following endorsement from tech mogul Elon Musk. All eyes were on the Tesla CEO as he took the stage on Saturday Night Live, which included a comedy sketch where he was forced to explain the complex technology to regular viewers.

"Call me the Dogefather," Musk said, playing fictional character Lloyd Ostertag in a skit.

"Cryptocurrencies are a type of digital money, but instead of being controlled by a central government, they are decentralised using blockchain technology.

"Lately, prices have been soaring for cryptos like Bitcoin, Ethereum and especially Dogecoin. Dogecoin actually started as a joke based on an internet meme, but now it's taken over in a very real way."

The skit continued with the fictional panel continuing to probe Musk to explain what the hell Dogecoin actually represents compared to real money, to which he responded: "It's kind of real.

Musical guest Miley Cyrus (left), host Elon Musk and Cecily Strong on the Saturday Night Live set. Photo / Getty Images

"It's the future of currency," he continued. "It's an unstoppable financial vehicle that's going to take over the world."

Musk also brought his mother out during the intro sketch to fit in another joke about the trending crypto.

Dogecoin fell off a cliff during Elon Musk's performance. Photo / Supplied

"I'm excited for my Mother's Day gift," she said. "I just hope it's not Dogecoin."

But after going in to bat for the revolutionary new tech, Musk admitted "it is a hustle", setting Twitter alight immediately.

Perhaps not coincidentally, popular trading app Robinhood experienced server problems midway through the programme.

Dogecoin peaked at US$0.71 (NZ$.97) and was sitting at US$0.51 (NZ$0.70) by the end of the show. It has since climbed back up to US$0.5445 (NZ$0.74) marking a 19.5 per cent drop since the show started.

So if Dogecoin is so easily manipulated by one influential individual, is it not fundamentally against the core principle of decentralisation?

— Viraj Sheth (@viraj_sheth) May 9, 2021

Elon on Dogecoin: "Yeah, it's a hussle"pic.twitter.com/EMh68vHrlx

— Alistair Milne (@alistairmilne) May 9, 2021

And with that painful episode of SNL over, so is my Dogecoin investment on Robinhood.

Cursed evening.

— El Oshcuro (@DaveOshry) May 9, 2021

"So it's a hustle?" Michael Che #WeekendUpdate

"Yeah, it's a hustle." Elon Musk batting the Dogecoin market around like a volleyball.

— Karen DaltonBeninato (@kbeninato) May 9, 2021

Musk's highly anticipated performance marked the first episode of Saturday Night Live to be internationally broadcast on YouTube.

"SNL is a global phenomenon and this livestream marks the first time audiences around the world will experience the show simultaneously along with the US," Frances Berwick of NBCU said in a statement.

"It's incredibly exciting to create this worldwide event with host Elon Musk, and musical guest Miley Cyrus. We thank our international partners and YouTube for helping us make it happen."