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Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk Asks Top Dogecoin Investors (DOGE) To “Sell Most Of Their Coins”.
What happened: The richest person in the world, who has been a staunch supporter of the cryptocurrency joke lately, said such a move would get his full support and he would “literally pay off. [dollars] if they simply cancel their accounts. “
“Too much concentration is the only real problem, [in my opinion,]Musk added.
As for those worried about the drop in the market price of Dogecoin as a result of such action from “whales,” as major coin holders are called in the industry, Musk says prices could be ” temporarily lower ”, but this gives the potential for a“ long-term increase ”.
Yeah
– Elon Musk (@elonmusk) February 15, 2021
Why is this important: While Musk touted Dogecoin earlier this month, saying that its high bid over Bitcoin (BTC) may in fact be an advantage, he noted concerns about the small number of whales holding a large amount of crypto. change.
The CEO of Tesla and SpaceX previously dubbed Dogecoin “people’s crypto” and said that you don’t have to be “a gigachad to own” the cryptocurrency.
Taking Benzinga: As Bitcoin prices hit new highs, many retail investors are turning to cheaper cryptocurrencies to allow them to be a part of the stock.
Strong Bitcoin supporters note that retail investors don’t have to worry about buying an entire Bitcoin as it can be bought in shards, with 1 Bitcoin equal to 100 million satoshis.
Although Tesla has invested in Bitcoin, it looks like Musk is really serious about adopting Dogecoin as a ‘popular crypto’.
It worries early investors to throw their coins at new retail investors who might jump on the bandwagon after Musk’s tweets. Dogecoin mining was relatively easier in the early days, around 2014-15, compared to other cryptocurrencies like Bitcoin, and few entities hold large amounts of crypto.
See also: Dogenomics: What’s so special about Dogecoin?
Several cryptocurrencies such as Litecoin (LTC) and Bitcoin Cash (BCH) have emerged over the years with the goal of being more retail investor friendly and enabling daily transactions than Bitcoin, but none have yet. found the same foot as the top. cryptocurrency.
Although Dogecoin has major backing in Musk, the risks associated with the cryptocurrency remain high.
Price action: Dogecoin traded 3.09% lower at $ 0.058 at press time on Monday.
Photo by Mark Verch on Flickr
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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