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A dogecoin “whale” owns 28% of the meme-based token, according to a report by the Wall Street Journal.
Records reveal that 28% of the circulating cryptocurrency belongs to a single investor, although the person or entity has not been identified. The position is worth about $ 2.1 billion at current prices, the WSJ reported.
The coin, which started as a joke in 2013, recently hit a $ 10 billion valuation, catapulting it to the same level as companies like Shake Shack and Under Armor.
The meme-inspired currency was relatively under the radar compared to bitcoin. In 2021, however, it gained the spotlight as celebrities put their weight on the cryptocurrency, whose mascot is the famous Shiba Inu meme.
On February 9, Dogecoin jumped 31% when Elon Musk and rapper Snoop Dog tweeted about the cryptocurrency.
Tesla’s CEO tweeted frequently about cryptocurrency and even talked about it at Clubhouse, an invite-only audio social media app earlier this month.
“Probably the most fun outcome, the most ironic outcome, would be that Dogecoin would become the Earth currency of the future,” said Musk.
Some traders say the 28% can point to several possibilities, including a stock exchange dogecoin or a single owner, such as Musk himself.
On February 15, Musk said the problem is the concentration of dogecoin among a few keepers. Musk once said that he would help Dogecoin become the “internet currency”.
“If the biggest Dogecoin holders sell most of their coins, it will have my full support,” Musk said in a tweet. “Too much concentration is the only real problem (in my opinion). I will literally pay $ reais if they just cancel their accounts.”
Dogecoin’s recent recovery was driven in part by the enthusiasm of Reddit users posting on subreddits, including SatoshiStreetBets and WallStreetBets. Users say the goal is to send the token “to the moon” – or at least $ 1 per coin.
“It only gained popularity recently due to the boom in the crypto industry (ie ETH and BTC), creating enthusiasm and a feeling of FOMO among major investors,” said Pavel Mateev, CEO of the card company Wirex cryptography to Insider.
On Wednesday at 1 pm ET, dogecoin was trading down 5.26% to $ 0.05279. The market value of the cryptocurrency, in turn, was $ 6.6 billion, according to CoinMarketCap, a cryptocurrency price tracking website.
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