Tesla and SpaceX CEO caused a huge drop in Dogecoin price after his last tweet. He had previously tweeted and caused a drastic rise in its price.

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DOGE has been in the spotlight for the past couple of days and enjoying great popularity which was initially created through a tweet by Mr. Musk. And it saw a sharp increase in its price since that tweet. However, the good days for this coin came to an end with another tweet from him causing a 23% fall in its price.

This drop happened right after Elon Musk criticized DOGE by talking about the distribution of its tokens in his tweet. He also had an offer stating that if huge holders sold their Dogecoins, he would support the coin fully. Here’s the original tweet;

“If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.”

The price of Dogecoin was $0.063 before this tweet and it sank by 23% about 7 hours after this tweet. He had impacted the price of Bitcoin previously, so this is not his first time to influence the crypto market. However, in Monday’s fall, his impact was not as tangible as BTC and DOGE as the global market capitalization saw $103b departing it simultaneously.
 
As a result of an enormous pullback, altcoins experienced more than 20% loss among the crypto market cap rankings which according to analysts has been because of BTC’s pushing to a new all-time high (ATH).

It’s not easy to determine the exact distribution of a particular cryptocurrency since public blockchains are pseudonymous or anonymous by nature. However, according to a couple of available sources, all the Dogecoin supply is held only by 100 addresses.

Dogecoin founder, Billy Markus, who started Dogecoin as a joke in 2013 from a meme “Shiba Inu dog” has said that he had to sell all his Dogecoin holdings in 2015 when he faced lots of financial difficulties after he lost his job. Going even further, he can’t figure out how the coin that has no value or real utility saw a meteoric rise, he says.

He has a not-so-serious approach towards DOGE but Elon Musk has been messing with Dogecoin through memes. He once appointed himself as Dogecoin CEO.


Elon musk tweets, Dogecoin falls                                             

Binance which is a very well-known exchange has shut down its services temporarily for maintenance on its platform. This occurred when market hits ATH retail interest.

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While Bitcoin is holding onto its current price trying to consolidate, altcoins are seeing sharp rises in their prices, and market being pretty hot, Binance has stated that it has suspended certain major services to run some maintenance.

Here is the notice released on February 11 ;

*“Binance is undergoing temporary system maintenance. Binance has suspended deposits, withdrawals, spot and margin trading, P2P trading, OTC Portal trading, savings & redemption, as well as asset transfers from sub-accounts, margin accounts, futures accounts and fiat wallets.”*

Binance states that the Futures trading is excluded from this maintenance and users do not need to worry about their funds since they are untouched and safe.

Binance made an apology regarding this inconvenience and added that they will inform the users once the maintenance is complete and that the users will be given 30 minutes to deposit, withdraw or cancel their orders, or transfer any asset before the trading resumes.

According to CoinMarketCap, at time of this suspension, the 24 hours shocking volume is $219b and the market cap sits at $1,36 Trillion. However, Binance has not provided any ETA for the end of this maintenance.



Crypto Market skyrockets and Withdrawals are frozen and major services suspended by Binance

The factor that is not in keeping with blockchain's peer-to-peer model, the fee strategy, maybe where payment companies can’t compete with stablecoin payment networks.

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Visa, MasterCard, and PayPal who are the most well-known centralized payment companies have to change their ways regarding the fees to be able to carry on competing with the stablecoin payments that operate on blockchain, says Gartner.

According to Avivah Litan who is a VP analyst at Gartner, the factor that is not in keeping with blockchain's peer-to-peer model, the fee strategy, maybe where payment companies can’t compete with stablecoin payment networks. She also describes such firms as CeDeFi or “centralized decentralized finance” where huge centralized institutions tap into DeFi space and utilizing DeFi’s top apps.


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CeDeFi(Gartner)


However, these companies’ clients may start reconsidering the obligation of paying fees to these centralized services for cross-blockchain transfers which are not in agreement with blockchains’ primary promise, she adds. 
She reiterates and elucidates on the blockchian technology’s promise and reminds us of the blockchain mission;

“Companies we speak to are justifiably skeptical of these services. After all, the revolution of blockchain payments is that they execute peer-to-peer and eliminate central intermediaries and associated bank fees.”

Litan also suggested that the card firms may have multiple unseen offerings like blockchain-based transparent real-time stablecoin payments that are bound to fundamental information about a particular transaction and protection of funds supporting partner bank accounts’ stablecoin sitting.



Stablecoin Payments must be included in the Credit Card Companies payment methods or they would fail

Mr. Billionaire who is also Tesla’s head has had some activity on his account which has caused a lot of debate and on top of that unusual volumes of trading observed as well as double-digit returns.

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Recently, Tesla’s CEO with over 45.5m followers on Twitter, Elon Musk, has been manipulating the crypto market with his many ideas about them. For instance, he called DOGE “people’s crypto” and help it grow bigger;


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In an attempt to measure Mr. CEO’s social media impact on the price of certain assets, Lennart Ante who is a BRL researcher looked into 6 of Musk’s crypto-related activities (2 posts about BTC and 4 for DOGE) posted in the last 2 years. He used two models of cumulative abnormal return (CAR) and cumulative abnormal trading volume (ATV) and found out that Bitcoin and Dogecoin had returns of 18.99% and 17.31%, respectively.

Out of the 6 Twitter activities, 4 seem to have not had a meaningful impact on the market and any kind of increase has been for other reasons, however, the remaining 2 that had significant returns for the coins are adding “#bitcoin” to his bio and the other is his one-word “Tweet”.

While changing the bio to #bitcoin seemed to be a sign of Musk’s support for Bitcoin, the tweet for Dogecoin was certainly a joke as Musk admitted this fact.

Well, it goes without saying that these influencers whether rich or famous or both could have negative effects on certain cryptocurrencies and their returns. They could have short-term impacts and pumps and dumps which might cause sudden changes in the price of certain coins and alter the lives and investments of many.
