The value of Dogecoin (DOGE) plunged 23% in a matter of hours on February 15, after Elon Musk drew attention to the extremely unequal distribution of DOGE tokens and encouraged its major owners to sell their assets.
Dogecoin has one of the most asymmetric distributions in the cryptocurrency area, with 28.7% having only one person, while the 12 best owners have almost 50% of the offer. Just before midnight on February 14, Musk tweeted:
“If the biggest Dogecoin owners sell most of their coins, I’ll get full support. Imo, the only real problem is overconcentration.”
Just seven hours later, Dogecoin’s price fell by 23%, from $ 0.063 to $ 0.048. While Musk’s tweets have previously been attributed to price movements in cryptocurrency, not least Dogecoin, his role in Monday’s dive was less clear, given that more than $ 105 billion had gone from the rest of the global market value at the same time.
Losses of over 20% have been common among market value rankings of cryptocurrencies, especially altcoins have had a huge decline. Analysts speculate that this was caused by pressure from Bitcoin (BTC) to a full-time job just a few hours ago, reducing the size of the altcoin market.
It can be difficult to calculate the exact distribution of a particular cryptocurrency, as public blockchains tend to be borrowed or anonymous. But data from many available sources show that almost 70% of the total supply of Dogecoin is in over 100 titles.
The dogecoin founder recently revealed that he sold all of DOGE’s assets in 2015 amid financial difficulties after losing his job. Billy Marcus launched Dogecoin as a joke in 2013 based on the so popular Shiba Inu dog meme. Marcus said he struggled to understand, let alone explain, the meteoric rise of something that did not seem to provide real benefit or value.
Elon Musk’s flirtation with Dogecoin seems to be largely driven by humor. The Tesla founder himself once declared the CEO of Dogecoin (an open source cryptocurrency), and his interaction with the coin has so far been largely based on memes rather than some investment strategy.