SpaceX’s CEO Elon Musk has come out to support equal distribution of the altcoins, suggesting that top holders of Dogecoin should sell a big portion of their cryptocurrency to support the altcoin’s equal distribution in the market.
Altcoin distribution and big Dogecoin wallets
The tweet might come out as a joke to some, but it is not and, in fact, real. The emphasis is on Dogecoin’s wealth concentration, where this wallet address holds over 27% of the entire market supply of the altcoin. Other pointers verifying this issue suggest that the top 20 Dogecoin holders have about 50% of the altcoin’s complete circulation supply. That is why Elon Musk has come forward to urge these large Dogecoin supply holders to sell their stash and get endorsement directly from him.
What did the tweets mean, and what should you expect?
The tweet sent out by Elon Musk was clear as day where he said that if large Dogecoin holders are willing to sell their stash, then they will receive their full support. Furthermore, the tweet added that concentration is the real issue in the altcoin market while making it difficult to sustain its value.
Another tweet came forward asking a question that was secretively thought by many, which is that would support provided by Elon Musk continue if the elite holders of the Dogecoin continue to hold on? To which Elon Musk replied with “Yep.” It means that the endorsement provided by Elon Musk would end if the holders don’t want to let go of their Dogecoin.
Dogecoin came into being in 2013 as a “joke cryptocurrency.” The community had not given attention to it until 2020 when Musk posted many tweets endorsing the joke coin. Musk’s tweet pumped the price to new highs. Currently, Dogecoin is trading at $0.05 after a slight decrease of 1.58%.
For the Altcoins to consistently scale up and increase in value, their distribution needs to be made sure. It means that holders of altcoins must continue buying/selling their cryptocurrency instead of latching onto it.
Bitcoin, the world’s leading digital currency, has also faced harsh criticism from traditional finance community because whales manipulate Bitcoin’s price value.