The value of Dogecoin, cryptocurrency based on a meme, sunk 23% in a matter of hours on Feb. 15, after Elon Musk drew attention to the vastly unequal distribution of DOGE coins and urged major holders to sell off their holdings. Dogecoin has an unequal coin distribution, with 28.7% being held by just one person and the top 12 holders possessing almost 50% of the supply. Dogecoin had earlier surged after Elon Musk praised the cryptocurrency.
Dogecoin drops after Elon Musk’s tweets.
Just before midnight on Feb. 14, Musk tweeted, “If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue IMO.” Little over seven hours later, the Dogecoin price had plunged 23%, from $0.063 to $0.048. While Musk’s tweets have previously been credited with moving cryptocurrency prices, not least Dogecoin, his role in Monday’s drop was less clear given that over $105 billion departed the rest of the global market cap at the same time. Losses in excess of 20% were common among the crypto market cap rankings, with altcoins in particular subject to an enormous pullback.
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
Bitcoin nears $50,000.
Bitcoin’s price reached a new record on Sunday, rising above $49,000 for the first time. Bitcoin reached about $49,694 earlier in the day before paring gains to around $47,800 at the time of writing. It’s now up almost 70% so far this year. Rival cryptocurrency Ether hit a record on Saturday and is up about 150% year-to-date. Bitcoin is still up around 4% over the past 24 hours, as the leading cryptocurrency continues to get mainstream exposure. The price of the leading cryptocurrency is nearing $50,000 as it continues to gain mainstream exposure.