Saturday Night Live: Did the Dogefather Deliver?

Dogecoin fell in spite of Musk's best efforts.

The price of Dogecoin was down 30% yesterday morning after Elon Musk's much-hyped hosting of Saturday Night Live. The coin's price had hit $0.71 on May 8 as investors speculated on an SNL crypto sketch.

However, during the show, many investors cashed out, perhaps believing the price would not go any higher.

Musk's tweets have pushed the price of Dogecoin up on numerous occasions. Indeed, Dogecoin has risen over 10,300% so far in 2021 -- and the Dogefather (aka Elon Musk) drove several of the price jumps.

Dogecoin was created as a parody coin back in 2013, and it has a loyal following on social media. Although the coin doesn't have paid staff nor any fundamental purpose, it has jumped through more crypto hoops than many other coins. Several retailers, including the Dallas Mavericks, now accept Dogecoin payments. And you can buy Dogecoin on most top cryptocurrency exchanges.

What did Elon Musk say on SNL?

Dogecoin enthusiasts, who call themselves Shibes, even hosted SNL parties last night to cheer any mentions of the coin. And Musk did not disappoint -- here's what he said about Doge on the SNL Mother's Day special.

1. He bought his mom Dogecoin for Mother's Day

Maye Musk says, "I'm excited for my Mother's Day gift. I just hope it's not Dogecoin."

A grinning Elon Musk replies, "It is."

2. The Dogefather explains cryptocurrencies

A skit on cryptocurrencies saw Musk posing as a financial expert called Lloyd Ostertag, though he quickly asks to be called the Dogefather.

SNL cast member Michael Che repeatedly asks what Dogecoin is. Here are Musk's answers:

• "Well, it actually started as a joke based on an internet meme. But now it's taken off in a very real way."
• "Well, it was created in 2013 and has a circulating supply of 117 billion coins, of which 113 billion have already been mined."
• "Like I said, it's a digital currency."
• "About as real as that dollar."
• "It's the future of currency. It's an unstoppable financial vehicle that's going to take over the world."
• "It's a cryptocurrency you can trade for conventional money."

Eventually, Che says, "So it's a hustle?"

Musk laughingly agrees. "It's a hustle." He smiles before adding, "To the moon."

3. Musk describes the value of currency

In a Wild West gold mining routine, "Leron" (Musk) again questions the status quo. "What if instead of panning for gold, we just create our own currency?" he asks. When asked what it would be based on, he replies, "Whatever we say it's based on."

Has Dogecoin reached the mainstream?

Musk definitely delivered the promised Dogecoin references last night, even if he didn't push the price to $1 as some Shibes had hoped. But even after yesterday's fall, the price is still up almost 30% this week.

Outside the SNL hype, several industry experts argue the coin has crossed into the mainstream. Last weekend, billionaire entrepreneur and Shark Tank investor, Mark Cuban tweeted: "As long as more companies take Doge for products/services, then Doge can be a usable currency because it MAY hold its purchasing value better than a $ in your bank. If interest rates skyrocket or the amount spent falls or stagnates, so will Doge. Yes, a joke is now legit ..."

Mainstream or not, if you're considering buying Dogecoin or any other cryptocurrency, do so with caution. Dogecoin has defied industry expectations this year, but there are no guarantees the price will continue to increase. In fact, it may fall. These highly volatile investments may be a great way to diversify your portfolio, but it's never a great idea to invest with a "get rich quick" mentality.

Only invest money you can afford to lose and make sure you pad out your emergency fund and retirement savings before you buy crypto. If you face a financial emergency next month and the price of your crypto investments has fallen, you don't want to be forced to sell at a loss.