Dogecoin - the cryptocurrency launched in 2013 as a joke and even has the image of a Shiba Inu dog as its logo - is now one of the most talked-about in today’s crypto world. Dogecoin’s value was boosted with continuous support from Tesla CEO Elon Musk who has been endorsing the crypto meme since February 2021. According to CoinMarketCap, the current value of one Dogecoin is $0.35 (around Rs 26) as against not even a cent ($0.1) in January 2021. However, like the issue with most of the cryptocurrencies, Dogecoin is also marred with ‘whales’ - too few people holding the majority of the coins.
What do ‘whales’ mean in cryptoworld?
‘Whales’ are individuals who hold large amounts of coins of a certain cryptocurrency. This makes them powerful enough to manipulate the valuation of the said cryptocurrency and this results in price volatility. Now, a Dogecoin ‘whale’ account, that holds nearly $12 billion (around Rs 8,752 crore) worth of the meme currency, has again found itself in the spotlight. Despite the recent drop in the value, this ‘whale’ account has its holdings intact.
According to data from Bitinfocharts, the Dogecoin ‘whale’, with the address DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L, first bought Dogecoin on February 6, 2019 when its value was around $0.0018 (around Rs 0.13) a coin. However, this same account now has 3,671 crore coins, around 28 percent of Dogecoin’s total supply. Before the cryptocurrency’s downfall started two weeks ago, this whale account had $22 billion worth of Dogecoins.
Back in February, Musk had called this “too much concentration" by a few account holders the real issue for Dogecoin. The Tesla CEO also said such whale accounts will get his “full support" if they sell most of their coins.
I will literally pay actual $ if they just void their accounts— Elon Musk (@elonmusk) February 15, 2021
Musk did not stop there and even promised payment in actual dollars if whale accounts reduce their holdings. While one cannot find out who this Dogecoin ‘whale’ is unless the person himself or herself decides to come out, speculations are rife that it is none other than Musk himself.