Tesla, SpaceX CEO, and world’s richest human, Elon Musk, has advised major Dogecoin holders to sell their coins for the altcoin to gain his financial support and backing.
Dogecoin witnessed a 40% spike in value within an hour on February 4, following a series of tweets regarding the digital currency by the Tesla CEO, with increase climaxing at 55%, an all-time price of $0.0872, making it the seventh most valuable digital money at the time. That spike has since simmered down and nosedived as investors, including Elon Musk himself, have moved on.
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The CEO subsequently had his electric car company, Tesla, purchase $1.5 billion worth of Bitcoin, professing his goal to accept payments from customers with the currency, which will give the company liquidity in Bitcoin.
Although, Bitcoin the number one cryptocurrency in the world is currently worth almost $50,000, its competitor, DOGE, stand miles behind in the dust, with its value less than $0.1, and Elon Musk has given reasons why.
In one of several Doge-related tweets on Monday, Elon Musk blamed “major coin holders” also called ‘whales’, for his hesitation to invest in the crypto.
If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.
— Elon Musk (@elonmusk) February 14, 2021
Few hours after Elon Musk’s declaration for Dogecoin on February 4, users uncovered a mysterious address that holds over 34.9 billion DOGE which equates to 27% of the total number of coins on the platform. In comparison, the three largest bitcoin holdings comprise 7.18% of all bitcoin in circulation.
It was also discovered that 50% of DOGE entire supply is held by the top 20 addresses on the exchange, which heavily strays away from the decentralised system that cryptocurrency is renowned for. In contrast, the top 100 wallets in Bitcoin hold 32.2% of all bitcoin in circulation.
In addition, unlike Bitcoin, Dogecoin is devoid of any form of working halving as minting of coins is expected to continue as long as possible, while Bitcoin’s last coin will be minted sometime in 2140, with a definite amount of 21 million Bitcoin, making it a far more stable currency for investors.
Elon Musk went as far as assuring substantial investments in the currency if the system was decentralised.
I will literally pay actual $ if they just void their accounts
— Elon Musk (@elonmusk) February 15, 2021