In the past few days, the price of Dogecoin has fallen sharply. One of the main reasons for the decline was that China announced a ban on cryptocurrency trading. However, despite the crash, Dogecoin is one of the few cryptocurrencies that has seen an amazing increase in value compared to the beginning of this year. This growth is mainly attributed to Tesla and SpaceX CEO Elon Musk, who often support it on his social media accounts. But in February, he warned that the biggest threat of Dogecoin was its extreme concentration in a few digital wallets.
There are reports that the Dogecoin “whale” continues to hold billions of meme currency despite its recent decline. Now, this warning has once again become the focus of attention. Dogecoin address DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L apparently holds a digital currency worth nearly US$12 billion (approximately Rs 8,752 crore).
According to data from Bitinfocharts, the Dogecoin Whale purchased cryptocurrency for the first time on February 6, 2019, when its transaction price was US$0.0018 (approximately Rs. 0.13) per coin. Investors now own approximately 36.71 million dongle coins, which account for approximately 28% of the total supply of cryptocurrencies. Before the start of the stock market crash two weeks ago, the account’s assets had reached a staggering $22 billion (approximately 160.46 billion rupees). According to data from CoinMarketCap, at the time of writing, Dogecoin is trading at $0.32 (approximately 23 rupees).
In February this year, Musk tweeted that he would fully support the major Dogecoin holders to sell most of their shares, and said that excessive concentration is the “only real problem.”
If the major Dogecoin holders sell most of their coins, it will have my full support. Too much attention is the only real problem with imo.
-Elon Musk (@elonmusk) February 14, 2021
He even added that if they emptied their accounts, he would actually pay them in U.S. dollars.
If they just invalidate their account, I will actually pay $
-Elon Musk (@elonmusk) February 15, 2021
In the financial world, a “whale” is an entity that is capable of influencing the asset market by triggering large-scale transactions. The main problem with the governor, who has accumulated billions of dollars in whale accounts, is that they can single-handedly influence the market if they decide to sell.
The whales will have to consider Elon’s ultimatum here.
If they comply, #Dogecoin Become the currency of the Internet.
If they don’t do this, or “cheat” by distributing coins in multiple wallets, then it will lose Elon’s approval.
Decide on whales easily.Do the right thing
— ???????????? (@itsALLrisky) February 15, 2021
This is not why it fails. WHALE sold $100 million worth of Governor’s coins, which was accompanied by panic selling by ordinary holders. He just used the situation and people’s emotions. This is expected. The Governor will certainly rise again. HODL ???? ???? pic.twitter.com/3VUJ597tik
-Goodboi DOGE (@dogeonluna) May 9 2021
There is a lot of speculation about who might be behind this mysterious whale account. Many people suggest that Musk is the ultimate “liar”, and he may be the owner himself.
— ???? DogeforFun? ??? (@mvizcaino1108) May 21, 2021
in case @elonmusk Did you buy a mysterious Bitcoin whale worth $100 million last night? But he couldn’t tweet, so he turned to talk about the governor.
-EthereumWest (Not-A-Security) (@EthereumWest) April 2, 2019
Dogecoin was launched in 2013 and is marked by the image of a Shiba Inu (Shiba Inu) dog. This is the brainchild of technicians Billy Markus and Jackson Palmer, who made a joke when the transaction price was about 0.000232 USD (0.017 rupees) in 2013, avoiding traditional bank fees.