By Hassan Mehmood (Saudi Arabia)
The price value of Dogecoin, the so-called “meme” or “joke” cryptocurrency, plunged after the Tesla CEO Elon Musk said whales should liquidate their holdings.
Musk took to Twitter and asked whales to sell their coins because they controlled much of the coin supply. He wants even distribution of cryptocurrency among people who are aspired by the joke coin.
DOGE Price faces 20% Loss
Tesla CEO’s tweet caused Dogecoin’s price to plunge by more than 20% in a sudden move. However, the coin made some recovery as it is currently trading at $0.06 after a decrease of 6% in the previous 24-hours. However, it is possible that top holders reduced their DOGE’s holdings, which was responsible for the price decrease.
According to on-chain reports, the major supply is in the hands of whales. An unknown address is responsible for managing 27% of the cryptocurrency supply. The total worth of 27% share at the current price tag becomes equal to $7 billion. What’s more, the con-chain data reveals that 50% of DOGE’s entire supply is under the control of 20 top addresses.
Also read:Musk’s tweet shows that he may not endorse the joke cryptocurrency in the future due to the presence of whales. He wants democracy or true decentralization as top holders make the network highly centralized.
If whales empty their wallets of Dogecoin, the cryptocurrency’s price value will go as low as possible.
Recently, Changpeng Zhao, CEO of Binance, the largest cryptocurrency exchange by volume, recalled the pros and cons of Dogecoin and asked his followers “abandoned” the coin.
Centralization is a Sin
Too much concentration also challenges the decentralization of the world’s top digital currency, Bitcoin. Big names in the traditional finance raise a question about Bitcoin because whales can easily manipulate it; manipulation causes volatility.
Dogecoin was founded in 2013 and even abandoned by its co-founder, Billy Markus. Markus is not a whale and revealed that he sold his holdings back in 2015. He does not own the cryptocurrency because he does not consider coin to be worth billions of dollars in terms of market cap.
Musk has recently shown his interest in the top cryptocurrency. His car company Tesla made a $1.5 billion bet on the top digital currency, which caused BTC price value to claim $50,000.
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