Dogecoin enthusiast Elon Musk criticized the centralized nature of this cryptocurrency.
Mr Musk said the DOGE tokens are too focused on the same addresses
DOGE’s price fell 20% within hours of this tweet.
Notorious Twitter troll Elon Musk and the world’s richest man seems to be having more fun stirring up controversy in the cryptocurrency space.
Knowing that Elon Musk recently bought $ 1.5 billion worth of Bitcoin for Tesla , his interest in Dogecoin is rather strange. After his last tweet on Dogecoin, in which he criticized the centralization of tokens, the price of DOGE fell by 20%.
Musk criticizes Dogecoin’s whales
This drop in price coincided with a drop in the overall cryptocurrency market. Bitcoin (BTC) fell 5%, while Ethereum (ETH) fell 8%. The DOGE , however, experienced a particularly steep decline, at one point losing 25% from its daily open.
These drops came just before Musk posted the following tweet : “If the major Dogecoin holders sell most of their coins, he will get all of my support. Too much focus is the only real IMO problem [in my opinion] ”.
While Musk has a penchant for speaking positively about the Shiba Inu dog-inspired token, this new tweet was decidedly critical. The DOGE has seen massive increases in recent weeks following Musk’s tweets promoting cryptocurrency, and the events that led Reddit-based speculators to switch shares to Dogecoin.
This massive influx sparked the interest of Binance CEO Changpeng Zhao. The latter decided to openly criticize this increase, pointing out some potential pitfalls that the DOGE community could face.
With a single address holding over 25% of the total supply, and the next 19 addresses holding 25% or more of the coins, the DOGE may not be as decentralized as porters and speculators hope.
Consider what I do, not what I say
Interestingly, Musk tweets a lot about the DOGE but doesn’t seem to really have his eyes on the meme currency. Whether he’s just having fun, playing troll, or tweeting about his real concerns, Musk has made it clear which cryptocurrency he prefers by walking the talk. Telsa thus made a massive acquisition of Bitcoin, but does not own a single DOGE.
Although the billionaire and tech genius frequently mentions the project, investors and speculators should watch his actions, not just his words. While Musk watched retail traders give in to FOMO and skyrocket DOGE, he was racking up bitcoin on his side.