Elon Musk made another Doge-related storm on Twitter by requesting whales to sell off their coins.
“If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.”
Around ten hours later, the multi-billionaire founder of Tesla and SpaceX followed up with the following:
“I will literally pay actual $ if they just void their accounts.”
Is Musk Right To Question Distribution?
Dogecoin started out as a joke cryptocurrency and somehow has become a symbol of “sticking it to Wall Street” along with the GameStop stocks. One of the main proponents behind this recent rise in valuation has been Elon Musk himself. Musk has fast become the biggest mascot that Dogecoin could ever hope for, and in recent weeks, celebrities like Snoop Dogg and Gene Simmons have stepped into the DogeCoin hype train.
However, is there any validity to Musk’s statement about overt whale concentration? Well. Yes.
As per Bitinfocharts, 12 addresses own at least 1 million DOGE. These 12 addresses themselves own around 49% of the total coin distribution. As such, there is a heavy centralization factor when it comes to DOGE.
Following Musk’s tweet, noted crypto influencer - "CryptoCobain" replied:
“Hi @elonmusk I own the 4th biggest doge wallet and will burn the supply if you give me 1x SpaceX space suit, 1x Tesla Roadster and 1x Grimes.”
DOGE Falls Following Musk Tweet
Following the Tesla head tweet, DOGE’s price has dropped by a staggering 26% from $0.0639 to $0.0471, triggering significant selloffs. However, keeping in line with its overall eccentricity, the meme coin has since recovered to $0.0598. Previously, Musk’s constant support had pushed DOGE to reach $8 billion in market cap and become the 12th largest coin by market cap in the world.
Musk had previously asked his followers to choose between “dogecoin to the moon” and “all other cryptos combined.” Of the 2.4 million votes poured in, 71% chose DOGE, which pushed the coin price up by 35%. Musk also revealed that he had purchased the coin for his 9-month-old son.
While Musk’s involvement with DOGE is definitely noteworthy, it’s his involvement with Bitcoin that has gotten the entire community talking. As per reports, not only has Tesla purchased $1.5 billion in Bitcoin, but they will also eventually open up the option of purchasing Tesla cars with BTC. Following this news, the premier crypto's price went up to an all-time high of $48,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.