Dogecoin investors eagerly awaited Elon Musk’s Saturday Night Live skit last week, expecting his remarks to send the meme-coin to new highs.
Quite the opposite happened. Not only did the cryptocurrency tank 30% over the weekend, but the Dogecoin community was led on by con artists attempting to trick them out of their holdings.
A report published by blockchain intelligence provider TRM Labs detailed how the fraudsters manipulated Musk’s promotion of the digital currency, pocketing dogecoin worth $5 million at the time of the scam.
Here’s how the scam worked:
During the SNL telecast, viewers who searched for “Elon Musk SNL” on YouTube could see multiple livestreams that seemed to be hosted by the NBC show. They were actually being run by scammers.
The livestreams publicized links to unique websites that viewers could visit to receive dogecoin.
A message carried on the broadcasts read: “Elon Musk has devoted 500,000,000 DOGE to be distributed to all DOGE holders. Anybody can get some, just visit the website.”
This was perhaps somewhat believable as his followers expected the billionaire’s SNL hosting would pump the digital asset.
Users were asked to transfer dogecoin to a specified blockchain address with the assurance that they would receive double the amount sent.
As of May 9, the report showed scammer addresses received about 9.7 million dogecoin worth $5 million at the time. Initial findings noted most inflows were sent to the wallets by the owners themselves, falsely creating the illusion that they were legitimate accounts.
Most of these videos were taken down on Sunday in an attempt to cover any tracks.
One victim that fell for the scam warned others on the Dogecoin subreddit, saying: “Don’t fall for it like I did. The website won’t send you back twice the amount of coins you send them. I just went from having savings for this first time in my life to 60 bucks left in my pocket.”
“Giveaway scams are not new,” TRM Labs said. “According to the FBI, Mass Marketing Fraud schemes – like crypto giveaway scams – ‘victimize millions of Americans each year and generate losses in the hundreds of millions of dollars.'”
Dogecoin rebounds after Musk hints Tesla could accept it as payment
The digital asset recouped some losses by climbing as much as 20% to 55 cents on Tuesday. Musk ran a poll asking his followers whether they wanted his electric-vehicle maker to accept dogecoin as payment.
Most respondents said “Yes,” while about 20% didn’t think it was a good idea.
“As much of the value in Doge is speculative or perception driven, Elon seems to have anointed Doge as the de facto cryptocurrency with what seems to be a half-humorous, half-financial decision,” Edozié Izegbu, founder and managing director of digital-art for crypto platform Chimera, said. “The real question to be wary of is how long can this joke last.”
The meme-inspired cryptocurrency is up more than 11,000% so far this year, while bitcoin is up 90%.
Elon Musk may not be the biggest fan of Warren Buffett, but he might have the investor to thank for his “Saturday Night Live” hosting gig.
“There’s no question that Warren Buffett and other celebrity CEOs – including a real-estate developer named Donald Trump – helped pave the way for Elon Musk to cross over from the corporate world to pop culture,” Dave Ketchen, a management professor at Auburn University’s Harbert College of Business, told Insider.
Buffett became one of the world’s wealthiest people by picking stocks, striking deals, and buying companies. The investor has also transcended corporate America; he’s inspired scores of magazine covers, books, and documentaries, made cameo appearances on episodes of “The Office” and “All My Children,” and continues to star in an animated children’s TV show called “Secret Millionaires Club.”
Musk has followed Buffett in becoming a household name. He’s made cameo appearances on “The Big Bang Theory” and “Iron Man 2,” and has attracted vast amounts of free publicity for his companies and assets such as bitcoin and dogecoin.
“People feel personally invested in Musk and his success,” Ketchen told Insider, emphasizing that many of the executive’s fans watched him turn Tesla from a scrappy startup into a $600 billion company, and reignite mainstream interest in space exploration with SpaceX.
“As corporations continue to grow and represent some of the most powerful and influential organizations in the world, CEOs have become celebrities worthy of attention,” Scott Graffin, a management professor at the University of Georgia’s Terry College of Business, told Insider. As more CEOs realize the value of a public profile, it “almost becomes an arms race” to stand out from the crowd, he added.
Graffin highlighted former General Motors CEO Lee Iaccoca as one of the first celebrity CEOs, and General Electric’s ex-CEO Jack Welch as another major one.
Buffett and Musk are part of the same tradition, leveraging their shared talent for self-promotion to garner global fame and attention. Musk’s appearance on “Saturday Night Live” is just the latest example of that trend in action.
During Elon Musk’s opening monologue as Saturday Night Live host on May 9, he said “I’m making history tonight.”
Musk made history in several ways during the show. He is the only person worth $184 billion – making him the second-most richest man in the world – to host. He is also only the second billionaire CEO to host after Donald Trump, and did so without a background in entertainment.
But Musk did not mention his wealth or companies, including Tesla and SpaceX. He said during his monologue that he was making history as the first person open about having Asperger’s, an autism spectrum disorder where people have “difficulty responding to the body language, facial expressions, and tone of voice of others,” per Medical News Today. Some pointed out the statement was not accurate, as former cast member Dan Aykroyd has Asperger’s and hosted the show in 2003.
Though Musk is known to make inflammatory statements, his appearance on live TV was tame and uncontroversial. NBC gave the world’s second richest man a platform to show a human, sympathetic side with little critique of his massive wealth and power.
Popular comedy shows, like Saturday Night Live, can be a powerful platform for social and political critique and criticism, and that can include poking fun at powerful figures, even guest hosts. But Musk’s SNL episode failed to address his extreme wealth or the power and influence he wields.
Elon Musk didn’t miss a chance to hype the cryptocurrency Dogecoin as “Saturday Night Live” host on May 9.
Multiple times during the show’s “Weekend Update” sketch, “SNL” cast members asked Musk, “What is Dogecoin?”
“It’s the future of currency,” Musk said in response. “It’s an unstoppable financial vehicle that’s going to take over the world.”
Musk added Dogecoin was “as real” as a dollar bill that cast member Michael Che pulled out of his pocket during the sketch.
Dogecoin is a cryptocurrency created in 2013 as a joke and a cheaper alternative to Bitcoin, but it recently shot to fame after Musk, fellow billionaire Mark Cuban, and rapper Snoop Dogg expressed interest in it. Dogecoin jumped as high as 40% the week leading up to Musk’s “SNL” appearance. Musk tweeted he was “The Dogefather” during the episode.
Musk also referenced the popular catchphrase “To the moon,” popularized by the Reddit group Wall Street Bets. Wall Street Bets was rooting for GameStop stock’s unlikely rally earlier in the year. In January, Dogecoin surged 600% following Reddit-mania surrounding GameStop, Insider’s Grace Kay reported.
Earlier on Saturday, Musk also joked he bought his mother Dogecoin as a gift for Mother’s Day, which was the day after the episode.
“Well break a leg tonight, I love you very much, and I’m excited for my Mother’s Day Gift. I just hope it’s not Dogecoin,” Maye Musk, his mom, said during the episode’s opening monologue, to which Elon responded: “It is.”
It was recently announced that Tesla and SpaceX CEO Elon Musk would be making his hosting debut on “Saturday Night Live” on May 8. The decision apparently caused a disconnect with cast members, who took to Twitter to express their opinions.
Behind-the-scenes tension is still present in the hours ahead of the show, according to the New York Post. An unnamed industry source who said they know the show intimately told the outlet the new cast “are getting a little too big for their britches.”
The criticism from cast members came after the announcement that Musk would host the show. The CEO then tweeted: “Let’s find out just how live Saturday Night Live really is.”
American actor and cast member on “SNL”, Bowen Yang, replied: “What the f-k does this even mean?” but then later deleted his tweet. Aidy Bryant also deleted a post that took a swipe at Musk.
But the source added that guests can “tweet and do whatever they want on social media … they weren’t told to take down their messages.”
“If they were elsewhere, they would have been suspended [for tweeting], but they can do whatever they want. [Producer Lorne Michaels] has never said to anybody they have to turn up for a show,” said the industry source, in reference to the cast.
As Insider previously reported, cast members were told they won’t be forced to act alongside Musk if they don’t want to. But no cast members have pulled out of the show yet.
Opinions on guests are not only limited to Musk, however. It was also revealed to the Post that cast members were unhappy with country music star, Morgan Wallen, when he made his “SNL” debut in December. This came two months after he was disinvited from the show for breaking the show’s quarantine rules.
But the industry source added that, ultimately, Michaels is the man in charge: “Not everyone [on the show] agrees about what is funny or who should host, but Lorne is the decision-maker and the buck stops with him.”
“None of the original cast were exactly shrinking violets … if Bill Murray or John Belushi had social media back then, they would not be afraid to express their opinions,” the source added.
I often write about platforms (iOS, Amazon Marketplace, etc.) as they are a source of value creation and power. The platform of unprecedented wealth creation is the free market of capitalism. The global adoption of markets has corresponded with the greatest expansion of prosperity in human history. But similar to tech platforms, free markets are neither naturally occurring nor immune to collapse. The “free” market can fail.
Live from New York
This Saturday at 11:29 p.m. ET, we’ll witness the latest manifestation of market failure. A new king will seize the Iron Throne from Mark Zuckerberg, whose empire has been disarticulated. (He just doesn’t know it yet.) I wonder if Professor Tim Wu or Senator Amy Klobuchar visits the Night King in his dreams? Or maybe depressed teens, the GRU, or the ghosts of people dragged out of their cars in India and hanged because of falsehoods spread on WhatsApp. OK … that escalated quickly.
Anyway, the social network’s CEO has ceded the Iron Throne to the Launcher of Dragons, Borer of Tunnels, and Father of X Æ A-Xii. The coronation will take place before a live studio audience, with Tesla long bots and adoring CNBC personalities shaming anybody who doesn’t surrender to the narrative. Elon Musk is now the most influential individual in the world – so influential, he can distort the modern world’s premier platform, our free market system.
Is Mr. Musk a net positive for society? 100% yes. It’s the word “net” that is the problem. We do basic math on a person/firm, issue a thumbs up/down, and decide (if thumbs up) to ignore the externalities. This is tantamount to deciding pesticides are a net good (they are), so we should disband the EPA.
Naked examples of Musk’s influence/externality: the tweeted endorsements of his favored assets. Bitcoin is a trillion-dollar cryptocurrency that could reshape the world economic order … and Musk can manipulate it with (many) fewer than 280 characters.
Researcher Lennart Ante found “significantly abnormal returns of up to 18.99%” after Musk tweeted about bitcoin. “I believe that cryptocurrency traders are looking for role models and validation,” Ante told us when we asked him about his research. But, “we are facing a moral dilemma” he pointed out, between free speech and the protection of investors. When Musk changed the bio of his Twitter account to “#bitcoin” on January 29, the cryptocurrency rose from $32,000 to more than $38,000. Is it free speech? Yes. Does that mean it won’t destabilize the markets and end badly?
I. Don’t. Know.
Mr. Musk can even move markets accidentally. When he tweeted “Use Signal,” referring to the encrypted messaging app, shares in Signal Advance, a Texas medical device maker, increased 5,100% in three trading days.
The musk of Musk’s influence gets stronger this week. He’s established an informal alliance with Dogecoin, a functioning cryptocurrency that’s also an extended practical joke. In the week leading up to Musk’s “SNL” appearance, and following his tweet claiming to be The Dogefather, Dogecoin briefly reached $85 billion in market cap, more than Moderna or Airbus. By midweek it had registered an astounding $45 billion in transaction volume in 24 hours. Click here for a detailed, scientific video rendering of what this level of trading actually looks like.
Reality distortion field
The theory of relativity dictates that massive objects distort the space-time continuum, and light and matter slide toward it. Musk has become a similar celestial force in our markets – but in this case, the graviton particles are genius, attention, ID, and capital.
In a healthy market, resources flow where they’ll generate the best return: Workers move to cities with strong job markets, capital flows to companies with robust growth prospects. But in Musk’s case, the power of celebrity in a social media age, a rising class of retail investors with stimulus funds, and our idolatry of innovators have combined to create a vacuum that may cauterize other naturally forming celestial objects. I’m especially proud of the last sentence.
Show me the money
None of this is by accident. Despite being one of the wealthiest people in history (on paper), Musk constantly needs more cash. He recently acknowledged that SpaceX will need “to pass through a deep chasm of negative cash flow” just to launch its satellite internet service. The company has already raised more than $1 billion this year, and $7.5 billion over the course of its history, while continuing to burn billions in revenue. Musk’s other projects, including Neuralink and The Boring Company, have raised another half-billion dollars with little revenue so far.
Tesla posts an accounting profit, but in its most recent quarter, it was emissions credits (a regulatory program that rewards auto companies for making electric rather than gas vehicles) and – wait for it – $101 million in bitcoin trading profits that morphed earnings from a miss to a beat. What Tesla did not do last quarter was produce a single one of its two premium cars, the Model S or the Model X. Promised redesigns have apparently snarled production. On this topic, Musk has been uncharacteristically CEO-like (that is, discrete).
Cash burn isn’t the only challenge facing Musk’s companies. Tesla, his flagship business, now has a market cap larger than the auto and airline industries. The company achieved that value, in part, because for a decade it operated without a serious competitor. There’s never been a car like the Tesla Model S, and if you want a high-performance, luxury EV, your choice is easy … and singular. Value creation via disruption is as much a function of the incumbents as the disruptor. Imagine a world in which the only phones were flip phones and the iPhone 12. That’s the auto industry since the Model S arrived in 2012.
Or that was the auto industry. Because the Germansarecoming. And the Swedes. And the Japanese. On May 2, we got a glimpse into a post-Tesla future when the New York Times ran an article titled: “Mercedes EQS Electric Sedan: The S Stands for Stunning.” The innovation gap is closing. And it’s not just car companies coming for Tesla’s fat margins. The industry’s shape-shift from a $100 billion low-margin manufacturing business to an $800 billion high(er)-margin software business has attracted some enormous sharks. The first overnight $100 billion-plus transfer of shareholder value will occur in 2022, when Tim Cook stands onstage in front of an automobile bearing an Apple logo.
What is the shark repellant for these circling great whites? Musk must keep capital and talent flowing into these enterprises while distracting us from anything regarding fundamental analysis (P/E ratios) or sobriety (it’s a car company). The embrace of crypto serves both needs: It’s consistent with his techno-utopian vibe, and it directs the conversation away from the Mercedes EQS or Apple car while providing a shock absorber for earnings misses. The “SNL” appearance, Dogecoin tweets, Elvish-letter-named kids, tickling of our senses with 420 references and suggestive emojis: It’s David Copperfield, plus 60 IQ points. To be fair, landing two rockets on barges concurrently is genius and inspires awe. But does it warrant consensual hallucination?
Pumping bitcoin might buttress Tesla’s earnings, but it blows open a bigger hole in Tesla’s narrative. The narrative police demand we link Tesla’s valuation to solving the climate crisis, to reducing carbon emissions by replacing gasoline cars with electric ones. And it does that. According to the EPA, the average 22 mpg gasoline car spews out 4.6 tons of carbon every year. Powered by the US grid, an EV is the equivalent of a 68 mpg car, generating about 1.6 tons of carbon per year. (In other words, each Tesla on the road saves three tons of carbon every year.)
But bitcoin mining generates a lot of carbon, too: Current estimates put it at around 53 million tons of carbon production per year. (Yes, miners use a lot of renewable sources and may catalyze greater renewables investment – but does that compensate for incremental electricity demand rivaling that of Argentina?) Here’s some back-of-the-envelope math that’s definitely going to raise the army of the undead (i.e., TSLA longs and bitcoin bots):
In the short term, bitcoin’s carbon emissions are a function of its price – the higher the price, the more miners are willing to spend on electricity to mine. Assuming a linear relationship (a convenient if aggressive assumption), for every $1 that Musk’s pump has increased the price of bitcoin for one year, miners expel another 1,000 tons of carbon. That wipes out the annual carbon savings of 300-plus Teslas. If Musk’s bitcoin evangelism increases the price by $4,500, that effectively eliminates the ongoing carbon savings of every Tesla on the road today.
The deeper problem? Our elevation of Musk as a capitalist idol has distorted the flow of capital and talent. Healthy markets don’t take cues from the tweets of one man.
Man in the mirror
As “SNL’s” Lorne Michaels likes to say, “Here’s the thing.” Musk is going to keep tweeting, appearing on “SNL,” and ensuring he has a bigger rocket than other masters of the universe … because it works. While we’re watching the fireworks, he’s building cars and rocket ships. Is he the best person to build those things? Is the most efficient amount of capital flowing to his factories, versus those in Ingolstadt or Toyota or Detroit? A healthy market is supposed to answer that. It’s the allocation platform. It’s also hard to deny that Elon has inspired an extraordinary flow of capital into EVs and innovation in transportation.
But our idolatry of innovators and the algorithmic media ecosystem have distorted the allocation platform. In the spectacle economy, it’s about the show, the now, the short-term hit. We’re the richest country in the history of humanity, and we can’t garner the political will to fix our bridges, let alone reach for the stars.
This all raises the question: What do we expect? You only have to drive a Tesla around the block to know that Musk is not a grifter. He is a genius (see above: rocket shipslanding on a pad floating in the ocean). Maybe a world-saving, visionary genius should deploy any weapon at his disposal to garner the resources, fend off the challengers, and most importantly, buy the time to achieve his vision. Maybe.
We say we want straight shooters. We say we want wealth to be fairly distributed. But 53 million of us follow Musk’s Twitter feed, and tens of millions of us are going to watch him on Saturday night, and the Elon show will go on.
If there is a glitch in the matrix, it’s us. One in five US households with children is food insecure, and we have a man telling his 53 million acolytes to purchase a digital currency so he can sell it at a profit to pad the earnings of a company that’s worth more than automakers producing 60 times the vehicles. And why wouldn’t he? When you tell an innovator he’s Jesus Christ, he’s inclined to believe you. Once we idolized astronauts and civil rights leaders who inspired hope and empathy. Now we worship tech innovators that create billions and move financial markets. We get the heroes we deserve.
Saturday Night Live dropped a promotional video on Thursday for Elon Musk’s SNL episode, set for this weekend.
Tesla and SpaceX’s CEO will be hosting the comedy sketch show with Miley Cyrus as musical guest on May 8.
The video provides a peek into what Musk’s performance might look like, as it will be his debut on the show and one of his first major media appearances. In the past, Musk has been included in brief cameos on Iron Man 2, South Park, and The Simpsons, but he’s mostly shied away from live television.
Musk is joined in the video by Cyrus, as well as SNL cast member Cecily Strong. In the video, Musk highlights the unknowns that come with bringing the controversial billionaire onto the show.
“I’m a wild card, so there’s no telling what I may do,” he said from behind his trademark bandana face mask.
Musk and Cyrus took to social media to promote the May 8 episode.
His scheduled appearance on the popular comedy show had been wrought with controversy since it was announced in April. Some cast members took to social media to express concern about appearing alongside the billionaire. On Saturday, Page Six reported that cast members could opt out of the episode.
Meanwhile, progressive consumer rights advocacy group Public Citizen, also reshared the post, saying Musk should “do a skit where you donate the $126,000,000,000 you added to your wealth during the pandemic.”
Musk is the second-richest person in the world with an estimated net worth of $184 billion, according to Bloomberg’s Billionaire Index. His wealth more than quintupled during the COVID-19 pandemic – Insider reported in January that his net worth increased 545% from January 2020 to 2021. However, his wealth is primarily tied up in his companies.
The Service Employees International Union also replied: “Let your workers form a union without trying to intimidate them,” and linked a New York Times article about Tesla firing an employee for organizing a union, which the National Labor Relations Board ruled illegal in March.
The tycoon also received suggestions from other Twitter users about how his sketch should revolve around him denying the coronavirus pandemic.
Since the start of the pandemic, Musk has spread misinformation about coronavirus case numbers, calling the panic around the deadly virus “dumb” on March 6.
The billionaire also suggested “Baby Shark & Shark Tank merge to form Baby Shark Tank.”
NBC announced in late April that Musk would be hosting the May 8 episode of the long-running, late-night comedy show SNL. Donald Trump was invited to host the show in 2015, which brought the show’s highest ratings in years.
Mellissa Carone, a key witness in the Trump campaign’s bid to overturn the result of the presidential election in Michigan, was on probation for sending her fiance’s ex-wife sex tapes, it emerged on Saturday.
According to police records first obtained by Deadline Detroit, Carone harassed the woman for two years, stalking her and sending her explicit videos from an anonymous account of herself having sex with her boyfriend, the woman’s former partner.
Investigators managed to trace the email account sending the videos to Carone, according to the report, and Carone later told investigators that she had been the person sending them.
She was initially charged with obscenity and computer crimes, but these were later reduced to a misdemeanor disorderly conduct charge as part of a plea deal.
A spokeswoman for the Wayne County, Michigan, prosecutor’s office confirmed the charges in a statement to the Huffington Post, and said that her 12 month probation ended just before Election Day.
Carone told the publication that in fact her fiance, Matthew Stackpoole, had sent the tapes, and that she had agreed to the plea deal so they didn’t have to spend any more time in court. He told the outlet that this account was true.
“The reason I got charged for it is it was sent off of my phone,” Carone told the outlet. “I just said screw it, I’m going to have to take it.”
Business Insider has attempted to reach Carone for further comment through what appears to be her Facebook account. Wayne County prosecutor’s office did not immediately respond to a request for further comment.
Carone, who describes herself as a cyber security expert, was contracted during the presidential election by Dominon voting systems to work at a Detroit polling station doing IT work. There, she claims to have witnessed widespread voting fraud.
She appeared as a witness for the Trump campaign at a hearing of the Michigan House Oversight Committee on Tuesday, where the campaign’s chief attorney, Rudy Giuliani, is challenging Biden’s victory.
In her testimony Carone angrily confronted state officials, and Giuliani appeared at one point to be trying to dissuade her from speaking out further.
The Trump campaign’s allegations of election fraud have been rebutted by state officials in Michigan, and rejected by courts across the country.