Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk is asking Dogecoin’s top investors (DOGE) to “sell most of their currencies”.
What happened: The richest person in the world, who lately has been a big supporter of the cryptocurrency joke, said that such a move would have his full support and that he “will literally pay [dollars] if they just cancel their accounts. “
“Too much concentration is the only real problem, [in my opinion,]- Musk added.
As for those concerned about the drop in Dogecoin’s market price after such action by the “Whales”, as the main coin holders in the industry are called, Musk says prices could be “temporarily lower”, but that gives potential for a “long-term increase”.
yea
– Elon Musk (@elonmusk) February 15, 2021
Why it matters: As Musk praised Dogecoin earlier this month, saying that its high supply over Bitcoin (BTC) may actually be an advantage, he noted concerns about a small number of whales that own a large amount of the cryptocurrency.
The CEO of Tesla and SpaceX previously dubbed Dogecoin “people’s cryptography” and said it is not necessary to be “a gigachad to own” the cryptocurrency.
Benzinga’s opinion: With Bitcoin prices rising to new highs, many retail investors have been looking for lower-priced cryptocurrencies as a way to be part of the action.
Fiery supporters of Bitcoin note that retail investors don’t have to worry about buying an entire Bitcoin, as it can be purchased in pieces, with 1 Bitcoin equal to 100 million satoshis.
Although Tesla has made an investment in Bitcoin, it seems that Musk really takes Dogecoin’s adoption as “the people’s cryptography” seriously.
This worries early investors by dumping their coins on younger retail investors, who may be following the wave after Musk’s tweets. Minar Dogecoin was relatively easier in the early days, around 2014-15, compared to other cryptocurrencies like Bitcoin, and few entities hold large amounts of encryption.
See too: Dogenomics: What’s so special about Dogecoin?
Several cryptocurrencies like Litecoin (LTC) and Bitcoin Cash (BCH) have emerged over the years with the goal of being more friendly to retail investors and enabling day-to-day transactions than Bitcoin, but none has yet found a base similar to the cryptocurrency apex.
Although Dogecoin has a big sponsor on Musk, the risks involved with the cryptocurrency remain high.
Price action: Dogecoin traded 3.09% lower at $ 0.058 at the time of Monday.
Mark Verch photo on Flickr
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