Dogecoin, a meme cryptocurrency launched in 2013, plunged on Monday after Elon Musk said he would give “full support” to investors with large holdings of the coin who decided to sell.
“If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo,” he tweeted.
Musk said in a follow-up tweet: “I will literally pay actual $ if they just void their accounts”. Shortly after, the price of Dogecoin slid by almost 26% from $0.0639 to $0.0471. It has since gained back some of those losses and is currently trading at $0.0580.
When another Twitter user suggested that Musk’s effort to push big holders to sell was a sign that he “legitimately sees Dogecoin’s potential as being the leading currency of the internet,” Musk replied, “Absolutely.”
Despite the recent pullback, the value of Dogecoin is still 1,934% higher than its price this time this year. Those that invested $100 in the altcoin a year ago would be sitting on just over $2,030 today.
Elon Musk Has Previously Supported Dogecoin
Musk has previously supported Dogecoin, which helped boost its price in recent weeks. This was recently witnessed as the value of the crypto rose from $0.0069 to $0.1004 within a day after the Tesla and SpaceX CEO encouraged his followers to buy the coin.
Musk’s influence allowed DOGE’s market capitalization to reach $8 billion, making it the 12th largest cryptocurrency as per the CoinMarketCap list. Interestingly, the current recovery suggested that the buyers were still trying to get their hands on DOGE.
What the past couple of weeks have shown is that the crypto market responds to tweets made by prominent personalities like Musk. In addition to Musk, other celebrities such as celebrities such as Snoop Dogg and Gene Simmons helped promote Dogecoin.
Aside from Dogecoin, Musk also is a big believer in Bitcoin, as evidenced by Tesla recently purchasing $1.5 billion worth of BTC.
Musk revealed that the electric vehicle company will soon accept Bitcoin as a form of payment for its products. Including vehicles and software upgrades.
Matt Borelli is a staff writer at CoinChapter, covering the daily developments in the cryptocurrency world. He is a Bitcoin enthusiast and proud Dogecoin holder. When not reporting on the latest cryptocurrency news, Matt can be found at the nearest baseball stadium.
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