Elon Musk criticizes the centralization of Dogecoin assets and encourages whales to sell. Meanwhile, the rest of the top 20 coins also pays the bill for a bullish week before. The market update.
After a volatile weekend, the crypto market is licking its wounds. At the time of going to press, Bitcoin and the top 20 altcoins show significant price losses compared to the previous day. The biggest sale was at the “Memecoin” Dogecoin (DOGE).
Elon Musk asks Dogecoin whales for sale
The Twitter activity of Tesla and SpaceX boss Elon Musk is both a blessing and a curse for Dogecoin holders. On the one hand, Musk Dogecoin has achieved enormous popularity in recent weeks through semi-ironic tweets, which is still reflected in a plus of around 490 percent in a month-on-month comparison. However, with his recent DOGE tweet, Musk has shown that he can fuel sales too. Elon Musk advised the Dogecoin whales to downsize their DOGE positions in order to ensure a better distribution of wealth within the Dogecoin cosmos.
When big Dogecoin holders sell most of their coins, they will get my full support. 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 are distributed over just 20 wallets. A single address currently holds 28.7 percent of all Dogecoins.
Whether the uneven distribution of DOGE’s assets is actually the only “real” problem for DOGE depends on which valuation standard is used. If you regard it as a pure meme coin for the masses, you can leave it that way. However, if you want to see Dogecoin as a store of value, you will find further points of criticism in the lack of a cap on the overall supply in connection with an inflation of 10,000 DOGE per minute.
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Dogecoin has since plunged below the $ 0.05 mark following the tweet from Elon Musk.
DOGE on a US dollar: unrealistic?
One can confidently question whether Dogecoin will ever reach the price target of one US dollar propagated by the community. A Dogecoin rate of one US dollar would currently correspond to a market capitalization of over 128 billion US dollars. Dogecoin co-inventor Billy Markus recently pointed out in a detailed Reddit post that this is a horrific number for a pure meme coin:
People are talking about Dogecoin going up to $ 1 – that would make “market cap” bigger than actual companies that offer services to millions like Boeing, Starbucks, American Express, IBM. Does Dogecoin deserve that? That’s something I can’t understand, let alone answer.
Billy Marcus via Reddit
At the time of going to press, the Dogecoin rate was showing slight signs of recovery. However, at $ 0.054, Doge is still trading 16 percent below its level 24 hours ago.