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What do We Know About Dogecoin?

The biggest Dogecoin address holds around 27% of the entire coin’s supply and had been mysterious since 2019.

Dogecoin has been often making the headlines in the last few weeks, and there is even more prediction on the role that Tesla CEO Elon Musk might have played an important role in the meme coin’s ecosystem.

Musk lately sent a series of tweets about Dogecoin, naming it “the people’s crypto” and helping the coin’s price to rise 40% in an hour. This isn’t the first time he has spoken about Dogecoin. In April 2019, answering to a comment about a joke poll that has seen Musk elected as the preferable CEO of Dogecoin, the billionaire stated that it “might be my fav cryptocurrency. It’s pretty cool.”

Two months before that, a news address appeared on Dogecoin’s network, and from then on, it has been regularly receiving new transactions, many of them having pretty huge amounts.

“Personally I don’t think it is all coincidence, but yes the evidence is by no means conclusive. Certainly a massive crypto whale of some sort. To own 20% of DOGE which has floated in the top 25-50 coins for years now, and doesn’t have an organization, VC, or DAO behind it, is very notable,” wrote one speculator on BitcoinTalk last month.

At the same time that the very first transaction in February 2019 saw it receiving 100 DOGE, other transactions contained hundreds of millions of coins. Since then the address has hoarded 34.9 billion DOGE or around $1.2 billion in today’s prices.

With the revolving supply of 128.2 billion DOGE, this represents 27% of all available coins – specifically something to make one think about how centralized Dogecoin could be.

This is the issue that Changpeng Zhao, CEO of Binance, clarified earlier today. In his view, having Musk as a PR manager and being decentralized in the sense that there is no core team of developers can potentially be considered as a positive thing, however, with a vast amount of coins sitting in a set of addresses, there are potential risks of centralization.

“1 address holds 27% of all #DOGE. Top 20 addresses hold more than 50%+ of all #DOGE. Kinda “centralized” in that sense,” tweeted Zhao.

The other big addresses, that Zhao referred to, have considerably fewer coins than the one on top. He stated that he wasn’t aware whether those are exchanges or mining pool addresses, nor who owns them.

The enigma of the largest address had been a point of discussion for a while. Last year, some Redditors discussed it, when it was worth around $20 million, with no precise answer found.

But a Redditor under the nickname of Fulvio55 insisted that none of those top wallets belong to real people. “They’re generally cold storage for exchanges and the like. Also, none of the ‘celebrities’ around here hold any coins to speak of,” he wrote way back then.

Some Redditors noted that while there are users who hold huge amounts of DOGE, they are not putting them into single addresses since “even in Dogecoin you get some not so friendly folks.” The possibility that Jackson Palmer, the co-creator of the meme cryptocurrency, is the owner of the largest address, has also been ruled out.

Nevertheless, whoever it is, they must have been observing the latest 10X spike enthusiastically. Unless it is an exchange.

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