Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk asks big investors in Dogecoin (DOGE) to “sell most of their coins.”
What happened: The richest person in the world, who was an ardent supporter of the joke cryptocurrency of late, said that such a move would get his full support and that he ‘literally [dollars] if they just nullify their accounts. ”
‘Too much concentration is the only thing, [in my opinion,]Musk added.
As for those concerned about the decline in Dogecoin’s market price following such action on a portion of the “Whales”, which refers to large coin holders in the industry, Musk says prices could be “temporarily lower”, but it gives the potential for a ‘long-term increase’.
Yup
– Elon Musk (@elonmusk) 15 February 2021
Why it matters: While Musk praised Dogecoin earlier this month, saying the strong offer for Bitcoin (BTC) could actually be an advantage, he notes that the concerns are related to a small number of whales consuming a large amount of the cryptocurrency possess.
The CEO of Tesla and SpaceX previously called Dogecoin ‘People’s crypto’ and said that one does not have to be a gigachad to own the cryptocurrency.
Benzinga’s name: While Bitcoin’s prices have risen to new highs, many retail investors have looked at cheaper cryptocurrencies as a way to take part in the action.
Fiery Bitcoin fans note that retail investors do not have to worry about buying an entire Bitcoin, as it can be bought in fragments, with 1 Bitcoin equal to 100 million satoshi.
While Tesla has made an investment in Bitcoin, it appears that Musk is actually serious about accepting Dogecoin as ‘people’s crypto’.
It’s worrying about early investors throwing their coins at new retail investors who are likely to jump to Musk’s tweets. Mining Dogecoin was relatively easier in the early days, around 2014-15, compared to other cryptocurrencies like Bitcoin, and few entities owned large amounts of the crypto.
See also: Dogenomics: What’s so special about Dogecoin anyway?
Several cryptocurrencies such as Litecoin (LTC) and Bitcoin Cash (BCH) have emerged over the years with the aim of being friendlier to small investors and enabling day-to-day transactions like Bitcoin, but no one has yet similar foot as the vertex. cryptocurrency.
Although Dogecoin has strong support in Musk, the risks associated with the cryptocurrency remain large.
Price action: Dogecoin traded 3.09% lower at $ 0.058 on Monday.
Photo by Mark Verch on Flickr
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