Elon Musk said that too much concentration of DOGE coins in the hands of big players is a matter of concern and thus he wants big holders to sell their coins.
Tesla CEO Elon Musk has been the key player behind the latest Dogecoin price rally. Last week, DOGE’s price surged to hit its new all-time high above $0.80 following a series of tweets from Musk. However, it seems that Musk is having a change of mind as now he favors selling the meme Doge coins.
In his latest tweet, Musk said that he wants major holders of DOGE to sell their coins as he finds too much concentration among the big players.
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
After Musk’s relentless support to Dogecoin last week, a number of his followers and investors worldwide jumped into buying the meme cryptocurrency. Popular personalities like Snoop Dogg and Gene Simmons also joined the frenzy. It is very much surprising that Musk’s call to sell Dogecoin soon after he referred to it as the future currency of the earth.
DOGE Coins Price Tanks 20%
Soon after Musks tweet, DOGE has entered sharp correction tanking more than 20% and slipping below $0.050. Although it has partially recovered back, DOGE is trading 15% down at a price of $0.055 with a market cap of $7.2 billion.
Manay analysts say that Dogecoin doesn’t have any real value proposition and thus it is bound to tank going ahead. Last week, speaking to CNBC, Bitcoin bull Nic Carter said that DOGE is nothing but a “vehicle of speculation”. Thus, he asked retail investors to maintain absolute caution and not fall for it. Carter said:
“Unfortunately a lot of retail punters are going to lose money on dogecoin in the long term because there’s really not much there in terms of interesting technology. The only thing it can really do is be zombified and stick around and be an empty shell for people’s expectations and for their entertainment.”
Even Wall Street veteran and Galaxy Digital founder Mike Novogratz said:
“Dogecoin reminds me a lot of GameStop. It’s a meme. It was funny for a little bit but now it’s at a market valuation where people are going to lose lots of money in doge. Bitcoin has a real purpose, Etheruem has a real purpose, lots of the stablecoins have a real purpose. Doge is kind of a meme, kind of a joke.”
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
