More than 28% of Dogecoin’s supply is concentrated in a single address

An anonymous crypto whale has concentrated 36.8 billion Dogecoin (DOGE) on its address — more than $1.68 billion at the time of writing. Decrypt reports on the large holder.

In February 2019, the first 100 DOGE were deposited to the address. Subsequent transactions were larger: in total the unknown owner received more than 55.8 billion DOGE and sent 19 billion DOGE.

Data: DogeChain.

In April 2019, Tesla and SpaceX founder Elon Musk described Dogecoin as his favourite cryptocurrency in response to a joking April Fool’s poll on Twitter. As a result, the entrepreneur was appointed CEO of the project.

In the same year, the address drew the attention of Reddit users on Reddit amid the DOGE price rally. One of them suggested that the wallet did not belong to real people.

«Definitely, this is some massive crypto-kitty. Owning 20% of DOGE, which has hovered in the top 25–50 for years and has no underlying organization, venture capitalists or a DAO behind it — that is very interesting», — added the forum participant.

As of writing, the 36.8 billion DOGE concentrated on this address represents 28.7% of all available coins, from a total supply of 128.2 billion DOGE.

Binance CEO Changpeng “CZ” Zhao noted that a large amount of coins in a single wallet poses a centralisation risk.

Some pros/risks of #Doge.

Pros: Cool, fun, PR manager @elonmusk. Decentralized in the sense there are no «core team». It’s abandoned.

Risks:
1 address holds 27% of all #DOGE.
Top 20 addresses holds more than 50%+ of all #DOGE
Kinda «centralized» in that sense.
«abandoned».

— CZ 🔶 Binance (@cz_binance) February 4, 2021

«Один адрес держит 27% всех DOGE. Топ-20 адресов держат более 50% всех DOGE. Своего рода “централизация”», — написал CEO Binance.

Zhao added that he does not know whether the addresses mentioned belong to exchanges or mining pools.

Based on public data from @CoinMarketCap and https://t.co/JWTfJcDZ5n

Not sure if the above data is 100% correct, or if they are exchange or mining pool addresses, etc, or who owns them.

Happy to get corrected.

— CZ 🔶 Binance (@cz_binance) February 4, 2021

On January 29, DOGE’s price for the day rose by 470% and hit a new all-time high at $0.078. The pump was urged by the r/SatoshiStreetBets community on Reddit.

What is Dogecoin (DOGE)?

On February 4, Dogecoin’s price rose by almost 50% in less than an hour after a series of Elon Musk tweets. As of writing, the cryptocurrency’s price stands at $0.044, according to CoinGecko.

Earlier, the head of SpaceX and Tesla admitted that he likes to “sometimes joke” about Dogecoin.

Earlier, adult-film star Mia Khalifa acquired DOGE during the rally. Gene Simmons, the bassist of Kiss, also invested in the cryptocurrency.

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