Elon Musk said that too much concentration of DOGE coins in the hands of big players is a cause for concern and therefore he wants the big holders to sell their coins
Tesla CEO Elon Musk was the key player behind Dogecoin’s latest price hike. Last week, the DOGE price soared to reach its new record above $ 0.80 after a musk tweets series. However, it seems that Musk is changing his mind, as he now prefers to sell Doge’s meme coins.
In his latest tweet, Musk said he wants the biggest DOGE holders to sell their coins, as he finds a lot of 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
“If Dogecoin’s biggest holders sell most of their currencies, that will have my full support. Too much concentration is the only real problem for me. ”
After Elon Musk’s relentless support for Dogecoin last week, several of his followers and investors around the world began to buy the meme cryptocurrency. Popular personalities like Snoop Dogg and Gene Simmons also joined the frenzy. It is very surprising that Musk’s call to sell Dogecoin comes soon after referring to it as the “future currency of the land”.
DOGE price drops 20%
Shortly after Musk’s tweet, DOGE entered a sharp correction, sinking more than 20% and falling below $ 0.050. Although it has partially recovered, DOGE is being traded 15% below, at a price of US $ 0.055, with a market value of US $ 7.2 billion.
Manay analysts say Dogecoin has no real value proposition and is therefore set to fall in the future. Last week, speaking to CNBC, ‘Bitcoin Bull’ Nic Carter said that DOGE is nothing more than a “vehicle of speculation”. Thus, he asked retail investors to maintain absolute caution and not fall for it. Carter said:
“Unfortunately, many retail investors are going to lose money on Dogecoin in the long run, because there really isn’t much there in terms of interesting technology. The only thing he can really do is be buzzed and stay around and be an empty shell for people’s expectations and for their entertainment. ”
Even the Wall Street veteran and founder of Galaxy Digital, Mike Novogratz said:
“Dogecoin reminds me a lot of GameStop. It’s a meme. It was funny for a while, but now it’s in a market assessment where people are going to lose a lot of money at Doge. Bitcoin has a real purpose, Etheruem has a real purpose, many of the stablecoins have a real purpose. Doge is a kind of meme, a kind of joke. ”