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Elon Musk wants big Dogecoin holders to sell their DOGE

Tesla CEO Elon Musk said today that he would support the top owners of Dogecoin Selling a large part of their DOGE warehouse in order to simplify the distribution of the altcoins according to a Tweet this morning.

Whether that’s a joke or not, Dogecoin’s problem of asset concentration is real. Reports suggest that a single unit holds more than 27% of the total altcoin Market capitalizationvalued at over $ 7 billion at press time. This brings the company’s inventory to over $ 1.8 billion GDP of a medium-sized island state From today.

In addition, the twenty largest DOGE addresses hold more than 50% of the current supply of altcoin (over $ 3.5 billion). While these could likely be crypto exchanges that hold Dogecoin as a reserve in their cold wallets, they have not yet been recognized by any exchange.

Musk insists that this has to change for the better. “If big Dogecoin holders sell most of their coins, this will have my full support. Too much focus is the only real problem IMO, ”he tweeted this morning.

If large Dogecoin holders sell most of their coins, it will have my full support. Too much focus is the only real problem imo.

– Elon Musk (@elonmusk) February 14, 2021

Musk’s endorsement of the token may not last forever, either, suggested his response to a relevant tweet today. A Twitter account said that if “whales” (a term used for the big dogecoin holders) didn’t sell and hold onto their tokens, Dogecoin could lose Musk’s approval – a tweet to which the eccentric billionaire responded: “Yup. ”

Dogecoin’s concentrated holdings mean an issue for DOGE’s long-term fundamentals (as with any other altcoin). Due to the lack of supply, prices can be artificially and disproportionately pushed up in favor of the few large purses. And if such purses finally decide to sell, the price of DOGE would inevitably plummet.

Some benefits / risks of #Doge.

Pros: Cool, fun, PR manager @elonmusk. Decentralized in the sense that there is no “core team”. It is deserted.

Risks:
1 address contains 27% of all #DOGE.
The top 20 addresses hold more than 50% + of all #DOGE
A bit “centralized” in that sense.
“leave”.

– CZ 🔶 Binance (@cz_binance) February 4, 2021

Founded in 2013 as joke Cryptocurrency, Dogecoin’s meme Value, the use of a Shiba Inu dog as a mascot, and a cute narrative have increased its market cap to billions of dollars over the years.

Over the past few weeks, celebrities, rappers, adult entertainment stars, and especially Musk himself (as the self-proclaimed “CEO of Dogecoin”) have tweeted their millions of followers about the joke currency – with coverage like this taking the DOGE from under $ 0.004 to over 0.4 USD brought in USD 0.07 in the last two months alone.

But can whales that sell their stocks save the so-called “folk crypto”? Musk seems to think so.

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