After putting his weight behind Bitcoin, Tesla CEO Elon Musk is ready to vouch for another popular cryptocurrency. Dogecoin, of all the other altcoins on the planet.
Yes, the cryptocurrency that started as a meme.
Dogecoin was invented by software engineers Billy Markus and Jackson Palmer. Marks started Dogecoin as a joke in 2013, basing it on the Shiba Inu dog meme that was all the rage back then.
The coin has seen meteoric rise. Amid the recent surge in Bitcoin and other cryptocurrencies, Dogecoin has seen its value swell to more than 659% this year. Nearly 113 billion Dogecoins have already been mined — a surprise for something that no unique value or real utility.
And top it off, Dogecoin has one of the most unequal distributions in the cryptocurrency space, one person holding 28.7%, and the top 12 holders in possession of 50% of the supply.
Elon Musk, the world’s richest man, drew attention to this fact in a tweet just before midnight on Sunday, urging major holders to sell off their holdings.
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
Come Monday, the value of Dogecoin sank 23% in matter of hours, plunging from $0.063 to $0.048.
While Musk’s tweets have previously been credit with moving cryptocurrency prices, his role in this most recent drop is less clear. Over $105 billion departed the rest of global market capitalization at the same time.
Then again, Musk’s flirtation with Dogecoin appears to be largely in the name of humor.
He once proclaimed himself as the self-appointed CEO of Dogecoin, an open-source cryptocurrency. And his interactions with the coin have thus far mostly been based around memes. He calls it the “people’s crypto”, and has even bought some coins for his son.
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