For Elon Musk, CEO of Tesla, a company that invested $ 1.5 billion in bitcoin, the only real problem for Dogecoin (DOGE) is the concentration of coins in a few addresses. If this were resolved, the entrepreneur would give Dogecoin his “full support”.
According to BitInfoCharts data, the top 100 DOGE portfolios hold 50.91% of the coins in circulation. In comparison, that number is 19% for Bitcoin (BTC) and 34% for Ethereum (ETH).
This high concentration is certainly a barrier to the mass adoption of cryptocurrency, which was created only to serve as a meme (just a joke). In addition, since a large amount of the coin's stock is held by a small group of wealthy people, the chances of the coin losing its value due to sudden price drops are very high.
So, to solve this problem, Musk, who has more than 46 million followers on Twitter, presented these big DOGE holders with an offer to liquidate a substantial amount of their stock in exchange for their support.
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“If the biggest Dogecoin holders sell most of their coins, that will have my full support. Too much concentration is the only real problem ”, said Musk, adding that "it will literally pay money if they just empty their accounts".
The meme coin
Elon Musk once described Dogecoin in one of his tweets as the “people's cryptocurrency” and even revealed who bought the cryptocurrency for his 12-month-old son.
Naturally, when it comes to this, it is not clear whether Musk was serious about tweeting the above text. It is also important to note that the community is somewhat in doubt when it comes to whether their constant Dogecoin tweets are good for the industry's future or not. One truth to this story is that they caused a great deal of volatility in altcoin.
The game is now underway and Elon Musk is the referee. Dogecoin's future lies in the decision of its main owners. Will they accept or reject the offer? We just have to wait and see.
For Billy Marcus, the creator of Dogecoin, this high concentration should not be such a relevant problem since most of these addresses must be platforms that allow DOGE trading.
According to an open letter published by Marcus, he sold his coins to buy a used Honda Civic in 2015 and has not been active on the project as a developer since.
Binance CEO Changpeng Zhao, however, quoted yet another possible Dogecoin problem: the abandonment of developers. The cryptocurrency hasn't had a relevant update in years. But in the end, other users also criticized the lack of shortages at DOGE, due to its “infinite inflation”.
See also: Did Tesla make more money from bitcoin than selling electric cars?