Everyone remembers the Dogecoin (DOGE) and Elon Musk incident. The tech mogul literally held up the meme coin up to the sky with his tweets and made his toddler a hodler. In response to the whole debacle, the price of DOGE resumed upward rallies leading to bullish behaviours from eager investors who entertained the fear of missing out.
Now in a tweet, just a few hours into 15th February, on 14th of February, Musk expressed concern over the supply concentration of the meme coin in the hands of a few and urged them to sell off their holdings.
Ittttn accuracy, he tweeted; “If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo. I will literally pay actual $ if they just void their accounts” Following the comment, a little over seven hours into 15th February, the price of the coin dipped 23% from around $0.063 to $0.048.
The tech mogul’s comments have been discovered to not be far from the truth. Dogecoin, was started by Billy Markus in 2013 as a joke derived from the Shiba Inu dog meme. The founder, expressing confusion on the reason why the value of the coin kept rising, has since revealed that he owns no DOGE holdings as he sold them all off due to money problems. With the founder out of the way, the DOGE holdings have proved to have one of the most widely unequally distributed supply amongst cryptocurrencies in the market since its birth. Values culled from sources have revealed that the meme coin has almost 70% of its supply in the market held by a little over 100 addresses, almost 50% owned by 12 addresses and 28.7% of the supply is held by one address.
However, in spite of the drop and Musk’s reputation for influencing the market with his tweets, experts are still of the opinion that Musk may not be totally to blame for the market change. At the same time the tweet had its acclaimed effect, the entire crypto market cap shed over $105 billion. It would seem that other altcoins suffered pullbacks as well probably from the increasing dominance of bitcoin (BTC). The apparent loss suffered by holders due to the incident is therefore not a strange occurrence in the crypto space.
However, it should not be ruled out that the Tesla founder did not influence the market. He once touted himself as the self-appointed CEO of Dogecoin raising suspicions amongst the community that he had become a shill for it. The coin has also been endorsed by Snoop Dogg and Gene Simmons as Musk reveals in another meme graphic. Investors are advised as usual to consider all tweets carefully and gauge the spirit of FOMO where necessary.
What is your take on the above? Let us hear it in the comment section below.
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