The meme-inspired cryptocurrency has seen a resurgence in recognition in current weeks, largely pushed by endorsements from the SpaceX and Tesla CEO.
Mr Musk, who not too long ago overtook Amazon founder Jeff Bezos to change into the world’s richest particular person, tweeted on Monday that he would assist Dogecoin (DOGE) change into the “foreign money of the web” if main holders offered their stake within the cryptocurrency.
On the time, greater than half of all Dogecoin in existence was held in simply 20 digital wallets, with one holder proudly owning greater than 1 / 4 of all 128 billion Dogecoin tokens in circulation.
Since Mr Musk’s pledge, a number of of those massive holders, generally known as ‘whales’, seem to have both cashed out or moved their Dogecoin to different digital addresses.
Knowledge from BitInfoCharts reveals that seven of the highest 635 holders have decreased their balances since Mr Musk’s tweet, nevertheless the biggest holder elevated their stake by greater than 2,000 Dogecoins.
This led to hypothesis amongst on-line Dogecoin boards that the biggest pockets belongs to a web based buying and selling platform like Robinhood.
After speculating on Twitter on Tuesday that Robinhood is the proprietor of the biggest Dogecoin account, Mr Musk returned to Twitter on Wednesday so as to add to rising demand for the boss of Robinhood to be extra clear about its holdings.
Robinhood didn’t reply to a request for remark from The Unbiased on hypothesis concerning the digital pockets or its Dogecoin holdings.
In accordance with the agency’s web site, it doesn’t enable customers to acquire the non-public keys of their crypto holdings, that means they don’t technically personal them in the best way they might in the event that they purchased them immediately from a longtime cryptocurrency change and transferred them to a digital pockets.
“We don’t presently give you entry to your pockets or your pockets tackle,” Robinhood’s website states.
“You personal the cryptocurrency property in your account, and you should buy or promote them at any time. We’re evaluating options to help you safely switch cash to and from Robinhood, and we’ll replace you when these options can be found.”
Throughout the identical dialog on the app Clubhouse, the co-founder of PayPal stated Dogecoin had the potential to attain broad acceptance.
Nevertheless on Monday, Mr Musk stated that enormous Dogecoin holders have been stopping the cryptocurrency from changing into a mainstream foreign money.
“If main Dogecoin holders promote most of their cash, it can get my full help. An excessive amount of focus is the one actual subject imo,” he tweeted.
“I’ll actually pay precise $ if they only void their accounts.”
The revelation got here simply days after Tesla introduced a $1.5 billion funding into bitcoin, which additionally boosted the worth of the world’s most beneficial cryptocurrency.
Bitcoin’s volatility is much less pronounced than Dogecoin’s, partly as a result of holdings of the cryptocurrency should not concentrated into a comparatively small variety of wallets.