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Elon Musk's latest financial advice: Don't pour your life savings into dogecoin

May 24, 2023, 17:49 IST
Business Insider
Elon Musk is a longtime fan of dogecoin - but recently warned investors not to "bet the farm" on the meme token.Yuriko Nakao/Getty Images; Britta Pedersen-Pool/Getty Images; Samantha Lee/Insider
  • Investors shouldn't "bet the farm" on dogecoin or other cryptocurrencies, Elon Musk said Tuesday.
  • The Tesla CEO is a longtime backer of the meme token – and once called it "the future of currency".
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Elon Musk offered a word of warning about dogecoin Tuesday, saying that investors shouldn't pour all their wealth into the meme token.

"I'm not advising anyone to buy crypto or bet the farm on dogecoin," the Tesla CEO said at a conference in London hosted by the Wall Street Journal. "Maybe you should, but let me advise you that would be perhaps unwise."

The world's second-richest man added that the memecoin is still his preferred cryptocurrency because it has "the best humour" and "it has dogs".

Musk's statement in London marks a rare occasion where he's downplayed his support for, rather than pumped, the dog-themed token.

In April 2021, he called himself "The Dogefather" in a promotional tweet for an episode of Saturday Night Live in which he said the token was "the future of currency".

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Musk also briefly changed Twitter's logo to a Shiba Inu dog last month, fueling a short-lived 20% spike in the price of dogecoin.

The token – which was created as a joke and has no practical use cases – surged in popularity during the crypto boom of 2021 but has cratered since then, with digital assets suffering due to rising interest rates and the dramatic collapse of high-profile companies like FTX.

Dogecoin currently trades at just over 7 cents – 90% below the 68 cent high it hit on May 8, the day before Musk's SNL appearance.

Read more: Elon Musk calls the meme-crypto Dogecoin the 'future of currency,' predicts it will 'take over the world' on 'SNL'

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