The value of Dogecoin (DOGE) fell 23% in just a few hours on February 15 after Elon Musk drew attention to the extremely uneven distribution of DOGE coins and urged major owners to sell their holdings.
Dogecoin has one of the most unequal coin distributions in the cryptocurrency space: 28.7% is held by just one person, and the top 12 holders own nearly 50% of the supply. Just before midnight on February 14, Musk tweeted:
“If big Dogecoin holders sell most of their coins, this will have my full support. Too much focus is the only real problem imo. “
A little over seven hours later, Dogecoin price had fallen 23% from $ 0.063 to $ 0.048. While Musk’s tweets were previously attributed to the moving prices of cryptocurrencies, not least Dogecoin, his role in Monday’s decline was less clear as over $ 105 billion simultaneously left the rest of global market cap.
Losses greater than 20% were a common sight in the crypto market cap rankings, with altcoins in particular experiencing a huge drop. Analysts believe this is due to the fact that Bitcoin (BTC) hit a new all-time high a few hours earlier, which pulled the volume out of the altcoin market.
Calculating the exact distribution of a given cryptocurrency can be difficult, as public blockchains are usually either pseudonymous or anonymous. However, data from several available sources shows that nearly 70% of the total Dogecoin supply is stored in just over 100 addresses.
Dogecoin founder recently announced that in 2015 he sold all of his DOGE holdings amid financial difficulties after losing his job. Billy Markus started Dogecoin in 2013 as a joke, based on the then popular Shiba Inu dog meme. Markus said he struggled to understand, let alone explain, the meteoric rise of something that appeared to have no real use or value.
Elon Musk’s flirtation with Dogecoin seems to be largely in the name of humor. The Tesla founder once declared himself the self-proclaimed CEO of Dogecoin (an open source cryptocurrency), and his interactions with the coin have so far been based primarily on memes rather than any type of investment strategy.