A few days ago, Elon Musk posted another tweet about Dogecoin and said, “If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.”
What he’s referring to is the fact that the majority of Dogecoin is currently heavily owned by just a few addresses. As it stands on bitinfocharts, the #1 largest address holds more than 28% of the total supply. The top 10 addresses then hold a further 47%, and the top 100 addresses hold about 68%.
Elon’s concern is that with the majority of the wealth being so centralized, then these Dogecoin whales will be able to manipulate the price at will.
In order to have an acceptable outcome, Elon has stated that he’d like to see no addresses holding more than 5% of the existing supply. To aid in this, Musk has said he’s willing to pay actual dollars if these holders will void their accounts.
However, what’s interesting is that 5% of the existing supply of 128 Billion Doge is actually 6.4 Billion Doge, which only the largest address currently holds more than.
What’s even more interesting is that that address is speculated to be owned by Elon Musk himself, as its first transaction occurred on February 6, 2019, and then just a few months later, he replied to this tweet.
As the richest man in the world and a big supporter of Doge, it’s not hard to believe that he could hold a large position. However, on Feb 21, 2019, he also tweeted this,
“I still only own 0.25 BTC, which a friend sent me several years ago. Don’t have any crypto holdings.”
The question then is: Is he lying or telling the truth? Is this just a play to get major Dogecoin holders to sell while he and his buddies accumulate more, or does he really want the best for Doge?
It looks like only time will tell. However, it seems Doge won’t have Musk’s full support until that address sells 30 Billion coins.
In the short term, Dogecoins price will likely continue to drop lower. However, watch for that address to begin selling off coins as that would be a massive buy signal.