Who would have thought that DOGE would see the hike we’ve witnessed over the past seven days? The joke coin meant to poke fun at the crypto-economy was trading at $0.04 with a 4.7% rise in the past hour. The surge could be due to Elon Musk shillings DOGE today.
— Elon Musk (@elonmusk) February 4, 2021
Musk’s tweet inspired Binance CEO CZ to speculate on the pros and cons of owning DOGE. According to him, the fact that Dogecoin now has Elon Musk as the “cool and fun PR director” of the project is a plus.
Earlier today, Musk even claimed Valérie Plante. that Dogecoin price was the people’s crypto; as a catalyst reaction, prices soared 40% in one hour. This isn’t the first time Tesla’s CEO has influenced the DOGE market. In April 2019, Musk claimed Valerie Plante. this DOGE “could be my favorite cryptocurrency. It’s really cool.”
At the time, two months before Musk tweeted about Dogecoin price, a new address appeared on the network . The owner of this wallet transfers billions of DOGE and has been doing so since 2019.
The Pros and Cons of Dogecoin You Should Know
The timing of Musk’s tweet after the whale Dogecoin price account surfaced has drawn a lot of speculation. A BitcoinTalk member discussed :
Personally, I don’t think it’s a coincidence, but yes, the evidence is by no means conclusive. Definitely a huge crypto whale of sorts. Owning 20% of DOGE that has floated in the top 25-50 coins for years now, and has no organization, VC or DAO behind it, is very remarkable.
Regardless of who owns the wallet, another concerning issue for the coin was highlighted today. Binance’s CZ said that a specific address holds 27% of all DOGE coins. While the top 20 addresses hold more than 50% of all DOGE. CZ speculated that this made the project “a bit centralized in that sense.”
Some benefits/risks of #Doge .
Pros : Cool, fun, PR manager @Elon Musk . Decentralized in the sense that there is no “core team”. It’s abandoned.
1 address holds 27% of total #DOGE .
The top 20 addresses hold over 50% of all #DOGE
A bit “centralized” in that sense.
— CZ 🔶 Binance (@cz_binance) February 4, 2021
CZ’s analysis is based on data available on Coinmarketcap and Blockchair.com . Undoubtedly, a single address indeed holds more than 34.812 million DOGE, or about 27% of the 128.233 million DOGECOIN in circulation.
With nearly 34.9 billion DOGE ($1.2 billion currently) gathered in one address, it actually lends more credence to the argument that DOGE is centralized.
Regarding the mystery of the DOGE whale, many have tried to solve it, but failed. However, a Redditor believed that no real person has one of the best wallets. The user speculated that such wallets are “usually cold rooms for exchanges and that ‘celebrities’ don’t actually hold any coins.
It is not because it starts from a joke and that its price is less than a dollar that we should not give this obscure and no less formidable cryptocurrency a chance.
Forget bitcoin. Either way, it’s too late , you haven’t bought any, and one bitcoin is worth $15,815.78 today, at least this Wednesday at 9:39 a.m. Tokyo time. Instead, invest in dogecoin, which is also on the rise. On Tuesday, its value had never been so high, displayed at 0.00673467 dollars. Yes, it’s not much compared to bitcoin, but as I often say, the bird is building its nest little by little.
What if bitcoin was not what it was supposed to be?
Take a look at this growth curve provided by CoinGecko : we can clearly see that dogecoin has seen a quite significant rise in its price since its creation in 2013, which was only valued at $0.0038. barely a week ago. And not only does this cryptocurrency have the advantage of remaining quite affordable despite this great progress, but it also bears the image of the doge, the famous shiba inu meme. And that is priceless.
According to dogecoin.com , dogecoin is “the internet’s fun and friendly currency”, and “stands out from other digital currencies with its amazing and vibrant community of friendly people, just like you”. I come back, I will buy a few thousand dogecoins.
A flight to be taken with tweezers
To come back to bitcoin – and explain more seriously this little upheaval in dogecoin – such a surge had never been observed in the history of finance. Despite falling to $16,000 on Tuesday after a platform in South Korea went bankrupt, bitcoin continues to rock markets around the world. Displayed at 1,000 euros at the start of the year, its price reached 19,000 dollars on Monday 18 December.
Cryptocurrency is on the way to becoming a financial asset like any other, after the launch of futures contracts by the two major Chicago stock exchanges. Despite everything, there are many who are worried about this outbreak and who already see the bursting of this bubble on the horizon, which would not be without consequences.