Following a tweet from Elon Musk criticizing the distribution of Dogecoin, the value of the digital asset plunged by 23% on February 15.
Early on Monday morning, the world’s richest man drew the attention of his 46.9 million Twitter followers to the vastly unequal distribution of DOGE. A tweet was all the motivation major holders needed to dump their assets. Within a few hours, the price of DOGE dropped from $0.063 to $0.048.
Speaking of the distribution of Dogecoin, the digital asset has one of the most unequal token distributions in the crypto industry. Nearly 50% of the coin’s entire supply is in the possession of the top-12 holders. Furthermore, a single individual (or entity) currently holds about 28.7% of Dogecoin’s supply.
Musk has promised to give the meme-coin his full backing if the major holders sell most of their coins.
As reported by BTC PEERS, Musk has repeatedly hyped Dogecoin, dubbing it “the people’s coin.”
DOGE’s 23% drop may not be entirely due to Musk’s tweet. Bitcoin along with other top cryptocurrencies were swimming in a sea of red on Monday morning. About the same time that DOGE dropped, $105 billion left the total market cap of the crypto sector. Losses of over 20% were also recorded by other cryptocurrencies.
As of press time, DOGE had recovered slightly and was trading at $0.059.