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According to a report by the Wall Street Journal, a “whale” of dogecoin is 28% of the meme-based sign.
According to records, 28% of the cryptocurrency is in circulation owned by a single investor, although the person or entity has not been identified. The position is worth about $ 2.1 billion at current prices, reports WSJ.
The currency, which started as a joke in 2013, recently reached a valuation of $ 10 billion and catapulted 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 was given the spotlight when celebrities threw their weight behind the crypto-currency, whose mascot is the meme-famous Shiba Inu.
On February 9, Dogecoin jumped as much as 31% when Elon Musk and rapper Snoop Dog tweeted about the cryptocurrency.
The CEO of Tesla regularly tweeted about the cryptocurrency and even talked about it earlier this month in Clubhouse, an exceptional audio-social media app.
“The most likely outcome, the most ironic outcome, is that Dogecoin will become the Earth’s currency of the future,” Musk said.
Some traders believe that the 28% could indicate several possibilities, including a bursary dog coin or a single owner like Musk himself.
On Feb. 15, Musk said the problem is the concentration of dogecoin among single containers. Musk once said he would help Dogecoin become the ‘currency of the internet’.
“If large holders of Dogecoin sell most of their coins, it will get my full support,” says Musk said in a tweet. “Too much concentration is the only real problem (in my opinion). I would literally pay real $ if they just invalidate their accounts.”
The recent rally of Dogecoin was driven in part by enthusiasm from Reddit users who have posted on subreddits, including SatoshiStreetBets and WallStreetBets. Users say the goal is to send the sign “to the moon” – or at least up to $ 1 per coin.
“It has only recently become popular because of the bull run that has taken place in the crypto sector (namely ETH and BTC), which has created hype and a sense of FOMO among mainstream investors,” said Pavel Mateev, CEO of the cryptocurrency card company Wirex , told Insider.
As of Wednesday at 13:00 ET, dogecoin is trading at 5.26%, at $ 0.05279. The market value of the cryptocurrency has meanwhile been $ 6.6 billion, according to CoinMarketCap, a price tracking website for cryptocurrencies.
Read more: A 29-year veteran who has delivered 446% to investors over the past decade breaks down the four trends that drove the sector in 2021 and shares 11 ‘attractively valued’ equities.