Last February, Elon Musk – the South African entrepreneur behind billion-dollar companies such as SpaceX and Tesla – announced that while he was a big fan of Dogecoin, there would be a serious problem with it should there only be a small concentration of wallets holding most of the available units. Now it looks like that worry is becoming a reality.
Dogecoin Has Grown, and Some May Be Getting Greedy
Dogecoin has shot up by more than 12,000 percent in the last year alone, making it one of the most popular and advantageous cryptocurrency assets out there. The digital currency has put its rivals like bitcoin to shame and is on the verge of striking one dollar per unit granted it can keep this momentum up for just a little while longer.
But the fact remains that Dogecoin, while popular, is not evenly distributed, and thus there are whales out there that present hazards to the future of the coin. One such whale wallet has been discovered lately, which at the time of writing, is said to hold as much as $22 billion worth of the altcoin. The wallet began collecting Dogecoin back in the year 2019, and it has not stopped.
There are about 36 billion units of Dogecoin in this wallet, which falls in line directly with the warning that Musk issued last Valentine’s Day. He stated:
If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue IMO [in my opinion]. I will literally pay actual money if they just void their accounts.
It is hard to understand what Musk’s intentions are, exactly. He will pay money if they liquidate their accounts… Does that mean he wants to move all this Dogecoin into his own wallet(s) or under his own name? What would be the outcome?
Right now, 67 percent of the Dogecoin in circulation is held in just 100 wallets. Interestingly, Musk has opened himself up to criticism and finger pointing with his recent statement, as some analysts and traders accuse Musk of being the Dogecoin whale he is presently speaking against. Could they be right?
Some point to evidence that the wallet in question holding the Doge has engaged in three separate transactions. When the amount of money being moved is added up, it comes to a figure that represents Musk’s birthday of June 28, 1971. Is this a coincidence, or did these transactions specifically take place for that purpose?
This Hasn’t Stopped Promotion
Either way, Musk continues to hoot and holler for Dogecoin and promote it as the strongest form of crypto around, going so far as to say:
Arguably, the most entertaining outcome, the most ironic outcome, would be that Dogecoin becomes the currency of Earth in the future.
Ironic indeed… Potentially unlikely, but still ironic.