A mysterious Dogecoin address has managed to accumulate more than 27% of the altcoin’s entire market supply.
DOGE, a meme coin that has been around since 2013, has continued to gain market attention thanks to high-profile Twitter mentions by Tesla and SpaceX founder Elon Musk. A recent study found that Musk’s tweets involving DOGE had a significant impact on the altcoin’s price and trading volume.
Pop artist Soulja Boy also contributed to the media hype for DOGE, asking his 5.2 million followers last week whether they preferred BTC or DOGE.
Bitcoin or Doge
— Soulja Boy (Drako) (@souljaboy) February 4, 2021
Crypto community members have now uncovered a single Dogecoin address holding more than 36 billion DOGE ($2.5 billion). The anonymous address is in control of 27% of all DOGE, with the top twenty addresses holding in aggregate 50% of the coin’s total supply.
The mysterious Dogecoin address has notably been seemingly hiding messages in transaction it has been sending out. On Reddit, via the r/cryptomarkets and the r/dogecoin subreddits, users have managed to decipher one, which contained the birthdate of Tesla CEO Elon Musk.
Some have even speculated the address could belong to Elon Musk, based on the timing of Musk’s tweets about the meme cryptocurrency and on the transactions the address has been making.
Deciphering a series of transactions from binary code, users managed to get a string reading “?NOLEUOYTISI.” The string reads “IS IT YOU ELON?” backwards.
— Chris Rawk (@rawk_at) February 11, 2021
One Twitter user warned investors the disproportionate holdings for DOGE could lead to a price meltdown in the event the whale addresses begin dumping.
1 address holds 27% of all Doge. Top 20 address holds more than 50% of all #Doge. If they eventually dump on you, there is no way you will recover. This is the Rich list of Doge coins centralised as hell; https://t.co/BesjF41sWg buy #Bitcoin bro even if it is 100$. https://t.co/7H7HNYHya8
— OLUWASTONER (@ORISHA_SEGUN) February 4, 2021
Changpeng Zhao, CEO of cryptocurrency exchange Binance, also issued a similar warning over DOGE’s skewed supply, in addition to calling the project “abandoned.”
Some pros/risks of #Doge.
Pros: Cool, fun, PR manager @elonmusk. Decentralized in the sense there are no "core team". It's abandoned.
— CZ 🔶 Binance (@cz_binance) February 4, 2021