Dogecoin set for ‘bumpy’ ride after Musk’s Saturday Night Live appearance: ‘Get out’ | City & Business | Finance
The Tesla CEO urged people to take “caution” when investing in cryptocurrency ahead of his appearance on Saturday Night Live. It comes after Dogecoin rose more than 14,000 percent since the start of the year and hit an all-time high this week. But the price has crashed more than 35 percent in the last 24 hours, now trading at $0.48 (£0.34).
And Prof Alexander says it could be set to decline further.
She told Express.co.uk: “Dogecoin is renowned for bubble after bubble. It happens all the time, but the bubbles have just got bigger.
“Usually, when Mr Musk tweets, the peak happens about 24 hours afterwards, and then it gradually goes down.
“It’s going up in a very bumpy way. It’s a huge surge and then it doesn’t come right down.
“At the beginning of February it was about $0.03 and then it went up to $0.06 and came back down to about $0.05.
“It took about 24 hours to get up to $0.06 and a week to drop down.
“Every time he tweets it happens and if you get more people like Jeff Bezos [talking about it] it could really rocket.
“In that case, I would want to get out as quickly as possible as it will crash back down afterwards.”
Prof Alexander prefers to call Mr Musk’s beloved token “dodgy coin” because, along with Bitcoin, she says “it is a joke”.
READ MORE: Jeff Bezos speculating on Dogecoin would spark ‘get out as quickly as possible’ warning
Prof Alexander explained: “Crypto has the power to change the entire financial system and the way financial markets dominate the economy.
“It is the future of all commerce, if you are a washing machine manufacturer you will use smart contracts, so will the health system.
“Smart contracts are on blockchains – it is a code that automatically executes step-by-step as soon as something is done the next step happens.
“Not all of these are on Ethereum, there are other public blockchains like Polkadot and IOTA – different blockchains focus on different types of applications.
“They don’t have to be public, either, they can be private like the central bank digital currencies would have to be.”
Britain’s Financial Conduct Authority (FCA) has previously warned investors of the risks that come with investing in cryptocurrency.
They said: “If consumers invest, they should be prepared to lose all their money.
“Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering.
“Significant price volatility, combined with the difficulties valuing [Bitcoin] reliably, place consumers at a high risk of losses.”
Express.co.uk does not give financial advice. The journalists who worked on this article do not own cryptocurrency.