Tesla CEO Elon Musk said today that he supports major Dogecoin owners who sell a large portion of their coin stock.
He added that he will pay whoever does it.
Whether or not this is a joke, the problem of “Dogecoin” fortune concentration is real.
Reports indicate that one entity owns more than 27% of the coin’s total market value.
The current total market value of “Dogecoin” is estimated to be over $ 7 billion at the time of writing this article.
This means that this entity owns more than 1.8 billion dollars of the digital currency “Dogecoin”.
In addition, about twenty Dogecoin titles account for more than 50% of the coin’s current circulating supply (more than $ 3.5 billion).
While it is likely that these are trading platforms that hold “Dogecoin” as a reserve in their cold portfolios, they have not been recognized by any trading platform yet.
“Mask” invited the major holders of the digital currency “Dogecoin” to sell their holdings in an attempt to make the currency more decentralized, and away from the control of the big whales.
According to the user “Yup” on Twitter, what “Mask” is doing is to make the digital currency “Dogecoin” more decentralized, and in the event that the whales sell what they carry of the currency, the currency will become more decentralized, then the currency may lose the support of “Mask”, which was agreed by “Mask” As a comment on this tweet.
The centralization of the “Dogecoin” digital currency is a problem with long-term “DOGE” fundamentals.
Shrinking supply means that prices can be artificially and disproportionately raised in favor of a few large portfolios.
And when such large wallets finally choose to sell, the price of DOGE inevitably collapses.
So, whenever things were more decentralized, the rise and fall in the currency’s price was natural, far from the artificial pumping and emptying.
The digital currency “Dogecoin” was founded in 2013 as a cryptocurrency in the form of a joke, but it recently turned into a digital currency that attracts the world’s attention after the continuous tweeting about it by Mask and a number of Internet celebrities.
Will the big bearers of the coin respond to “Elon Musk” and sell what they have in their possession, so that the currency becomes the currency of the people, as Musk promises?