Elon Musk stated via Twitter, February 20, 2021, that Dogecoin’s greatest problem is its concentration among a handful of whales. He is a billionaire wroteIt was:
I will support any major Dogecoin holder who sells most of the coins. Concentration is my only problem. If they void their accounts, I’ll literally fork out $.
However, what if Elon Musk was the largest DOGE whale? For a long time, this rumor was circulating within the crypto community. There has not been any conclusive evidence to back this up.
Even Manhattan’s Federal Court has to address the matter of Musk manipulating the DOGE price. The richest man in the world has been sued by investors for $258 millions.
Tesla’s CEO and other defendants, including Tesla Inc, SpaceX and Boring Co, are alleged to have operated a Ponzi scheme to manipulate Dogecoin, according to the complaint.
Musk’s efforts caused the Dogecoin to go up by 36,000% within two years. However, its price crashed shortly after, according the plaintiffs. In this way, the defendants “made tens of billions of dollars, knowing all along that the currency had no intrinsic value and that its value depended solely on marketing”.
Clues that Elon Musk is the Dogecoin Whale
At least it is obvious that Musk’s tweets regarding Dogecoin cause hysteria, sending the price skyrocketing. However, it is still unclear if Musk actually controls the DOGE’s largest supply address (which holds 28.52%) and is yet to prove his innocence.
A anonymous analyst on-chain has set out to clarify the issue. A thread he writes that Bitinfocharts refers to DOGE’s largest address as “Robinhood” – the American trading app.
There are doubts, however. A May 2021 Business Insider article quotes a researcher who says that the characteristics of cryptocurrency exchange addresses include both inflows or outflows. The mysterious address is unusual for an exchange and raises the question of if it’s really Robinhood.
According to an anonymous analyst, the DOGE was sourced from the source of the whale’s origin. This is why he points out that DOGE’s largest owner acquired it mainly from July 19 to July 21. That totaled 41B DOGE, or $6.4B.
The whale’s DOGE came from 5 addresses, with the skin portion coming from this address: DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L.
Remarkably, on February 10, 2021, Elon Musk tweeted that he bought Dogecoin’s for his son. At the same day, the previously mentioned address beginning with “DH5ya” ended its DOGE accumulation, the anonymous analyst states. A coincidence?
Dogecoin was purchased for little X so that he could be a toddler hodler
— Elon Musk (@elonmusk) February 10, 2021
At that time, the address “DH5ya” held 36.71B DOGE, which corresponded to 28% of the total supply.
Another interesting coincidence is the amount of DOGE coins the vacant address bought three times in February 2021 – 28.061971 DOGE. Call it coincidence or not, but June 28, 1971, of all dates, is Musk’s birthday – a hidden message?
DOGE Recalls the Rally
Bitcoinist reports that Musk posted a photo of a Shiba inu dressed up as a Twitter shirt with a Twitter pumpkin today. DOGE’s massive weekend rally resumed and it stalled right before $0.16. DOGE trades at $0.1389.