Elon Musk on a whale hunt: Dogecoin (DOGE) falls with the top 20
Elon Musk faults Dogecoin’s centralisation of assets and calls on Wale to sell. Meanwhile, the rest of the top 20 coins are also paying the piper for a bullish previous week. Market update.
After a Crypto Profit volatile weekend, the crypto market is licking its wounds. Bitcoin and the top 20 altcoins show significant daily losses as of press time. The biggest sell-off was in the „memecoin“ Dogecoin (DOGE).
Elon Musk calls for Dogecoin whales to be sold
The Twitter activity of Tesla and SpaceX CEO Elon Musk is both a blessing and a curse for Dogecoin holders. On the one hand, Musk has helped Dogecoin gain enormous popularity in recent weeks through semi-ironic tweets, which is still reflected in a month-on-month increase of around 490 percent. However, with his latest DOGE tweet, Musk has shown that he can also fuel sales. Thus, Elon Musk suggested Dogecoin whales to reduce their DOGE positions in order to ensure a better distribution of wealth within the Dogecoin cosmos.
If large Dogecoin holders sell most of their coins, they will have my full support to do so. Too much concentration is the only real problem imo [in my opinion].
Elon Musk via Twitter
Musk is referring to the fact that over 54 percent of all DOGE is spread across just 20 wallets. A single address currently holds 28.7 percent of all Dogecoins.
Musk seems to be serious about his claim. At least he is trying to get the whales to cooperate with money:
I will literally pay actual $ if they just close their accounts,
the richest man in the world waves his wallet.
Whether the inequality of DOGE’s wealth is in fact DOGE’s only „real“ problem depends on what standard of evaluation one applies. If one regards it as a pure meme coin for the masses, one can leave it at that. However, those who want to view Dogecoin as a store of value may well find further criticism in the lack of a cap on total supply combined with inflation of 10,000 DOGE per minute.
DOGE at one US dollar: unrealistic?
Whether Dogecoin will ever reach the price target of one US dollar propagated by the community can be safely questioned. A Dogecoin price of one US dollar would currently correspond to a market capitalisation of over 128 billion US dollars. The fact that this is a horrendous figure for a pure meme coin was also recently highlighted by Dogecoin co-inventor Billy Markus in a detailed Reddit post:
People are talking about Dogecoin going to $1 – that would make the „market cap“ bigger than actual companies that provide services to millions, like Boeing, Starbucks, American Express, IBM. Does Dogecoin deserve this? That’s something I can’t comprehend, let alone answer.
Billy Marcus via Reddit
As we go to press, the Dogecoin price is showing slight signs of recovery. However, at $0.054, Doge is still trading 16 percent below where it was 24 hours ago.