Discover more from Risky Reads
Elon's Dogecoin Ultimatum
Elon just changed the game.
Dogecoin’s fate is hanging in Elon’s grasp with his latest tweet.
Let’s take a look at Elon’s ultimatum to see where Dogecoin’s future lies.
Elon just shocked the Twitter-verse with this enticing ultimatum:
According to Elon, Dogecoin's only real issue is that too much Doge is currently concentrated among a few wealthy individuals.
In cryptocurrency slang, we call these "whales".
One wallet holds 27% of all the Dogecoin in circulation, and the top 20 addresses hold more than 50% of all the Dogecoin.
This concentration of wealth makes it difficult for Dogecoin to achieve its goal of being the official currency of the internet.
With too much Doge accumulated by too few people, there is an increased risk that these folks could crash the price on a whim and delegitimize Dogecoin's utility.
With his latest tweet, Elon just gave the whales an offer they can't refuse.
"If major Dogecoin holders sell most of their coins, it will get my full support."
Elon is essentially giving the whales a choice: Liquidate half of your wealth, become filthy rich from it, and then watch the rest of your fortune soar to the moon.
Or don't, and Elon will pull the rug of his "full support" from under Dogecoin's feet.
What Dogecoin whale wouldn't accept this offer?
It's a win-win for the whales.
They get rich by selling the majority of their coins, and then they get to see their remaining Dogecoin fortune rise from Elon's full endorsement.
If they comply, Dogecoin becomes the currency of the internet.
If they don't, or "cheat" by distributing their coins across multiple wallets, then Dogecoin loses Elon's support.
It's an easy decision for the whales.
Let's hope they do the right thing.
Your move, whales
Elon knows his influence, and he knows the whales are listening.
His ultimatum gives Dogecoin renewed talking-points, and it's sure to be in the public conversation, both about its legitimacy as the future currency of the internet and its problems stemming from whale accumulation.
We'll be watching to see if the whales start selling their coffers.
If they do, then Dogecoin could be going down in the short term, but its future outlook would skyrocket its price to new highs.
The game has been changed, and Elon is playing referee.
Thank you for reading, please subscribe to this newsletter.
Thank you, kind reader, for reading. I appreciate it. If you haven’t already, please sign up to my email newsletter for more weekly articles like this one. Also, please share this if you enjoyed it.
What do you think? Will the whales comply with Elon's request? Let me know!
Remember, Dogecoin is risky. But then again, it's all risky!
Follow me on twitter at @itsALLrisky
Email me at itsALLrisky@gmail.com
If you want to send me an optional cryptocurrency tip you can do so using my wallet address below. Thank you!
Meme of the week
Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
Disclosure: I currently own some Dogecoin and Bitcoin. At the time of posting, Dogecoin is around $0.057 per coin.