Amid Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk’s Dogecoin (DOGE) endorsements, the U.S. Securities and Exchange Commission has cautioned investors not to make investment decisions just because an investment has been recommended by “someone famous.”
What Happened: The SEC’s Office of Investor Education and Advocacy took to Twitter to warn investors against making decisions just based on celebrity endorsements.
A Twitter user immediately responded by asking whether he should buy Dogecoin because Musk has recommended the meme cryptocurrency as a good investment.
Elon said doge is a good investment. Should I buy it?
— Matthew Gould (@mgould11) May 19, 2021
Why It Matters: Created mainly as a joke in 2013, Dogecoin has shot to prominence this year, in major part due to endorsement from Musk.
Musk boasts more than 55 million followers on Twitter and his tweets on Dogecoin sometimes have an overwhelming impact on the price of the meme cryptocurrency.
However, Musk’s recent appearance on Saturday Night Live seemed to have the opposite effect for Dogecoin holders who had purchased the cryptocurrency at its highest prices in the days leading up to the event. During the show, Musk had referred to Dogecoin as “hustle,” causing the Shiba Inu-themed cryptocurrency to spiral downward.
Price Action: Dogecoin has lost 13.9% during the last 24 hours and is trading at $0.3525 at press time. Bitcoin is up 0.7% during the last 24 hours and is trading at $39,936.44.
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