Dogecoin: A single wallet holds almost a third of the cryptocurrency
The Dogecoin (DOGE) exchange rate recently caused a lot of furore. Now, however, there are considerable doubts about its decentralised nature. Alongside Binance CEO CZ, Cameron Winklevoss also takes the floor.
The price of Dogecoin (DOGE) has caused a lot of excitement in the last week. Within just one day, the price increased tenfold from $0.007 to a new all-time high of $0.07. Further turbulent days followed. DOGE is currently Bitcoin Rush trading at $0.045. Posts by Tesla CEO Elon Musk and Reddit users from the r/wallstreetbets group are considered the reason for the rally. BTC-ECHO also reported on the incidents.
Now the head of Binance named CZ is speaking out in the Dogecoin (DOGE) case. According to media reports, he provided a list of the pros and cons of the currency. According to CZ, the fact that the charismatic Tesla boss Elon Musk acts as the de facto PR manager for DOGE has contributed significantly to the popularity of the meme coin. As there is no real „core team“ at Dogecoin, the DeFi character is also very pronounced. However, he cites a risk that casts considerable doubt on decentralisation. A good 27 percent of all Dogecoins are stored in a single wallet. It is unclear who this could be – whether perhaps even the big Doge fan Musk is behind it. Moreover, 20 wallets hold more than half of all DOGE coins.
Social media posts cause turbulence in the share price
The sources CZ refers to are freely available to everyone. In fact, it is easy to check on blockchair.com that currently a single address holds more than 36 million Dogecoins (out of a total of 78.8 million). This is followed by other wallets, some of which have holdings well into the seven-digit range. If we take a closer look at the price trend, we come to the conclusion that the price movements of DOGE are fast and violent, especially when many posts about the meme coin circulate in the social media. Therefore, the price is not likely to be immune to further volatility in the near future.
Of course, CZ is not the only big name in the crypto business to have made a statement about Dogecoin. The co-founder of the crypto exchange Gemini, Cameron Winklevoss, sees the sudden hype as a signal for the financial market of the future.