Elon Musk Backed DogeCoin Dropped by 40 Percent Amid Controversies

Dogecoin dropped by 40 percent from the recent high following a series of controversies.

Changpeng Zhao, Binance CEO, had said more than 50 percent of Dogecoin was being held by just 20 wallets with one of those addresses having 27 percent of Dogecoin available coins.

This was further confirmed by hawkeye, a Reddit user, who managed to identified a particular wallet that had more than $2 billion worth of DogeCoin. Also, several large buying transactions were observed on the account in recent weeks.

The revelation created uncertainties about the future of Dogecoin, especially among smallholders who immediately became scared that these majority owners could disrupt the coin if they decide to dump a lot of their holdings into the market.

Billionaire Elon Musk who has been supporting the coin in recent weeks, on Sunday said the real issue is major holders. He, therefore, said until major holders sell their coins or holdings he will not support the coin.

In the tweet put out on Sunday Musk said ” If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue IMO.”

This coupled with the February 11th article by Coindesk that it was easy to attack Dogecoin and cheat its network to print new coins also contributed to the recent plunge in the value of the coin.

Even though Dogecoin refuted the claim and tagged it false, the management is yet to provide a solid response to allay investors’ fear regarding recent controversies.

DogeCoin’s market value dropped by 16.15 percent to $6.9 billion on Monday morning. While volume traded surged by 83.73 percent in the last 24 hours to $4.77 billion, largely by those looking to sell their holdings of the coin.

DogeCoin presently trading at $0.054 per coin, down from $0.08 it exchanged about a week ago.