KEY POINTS

  • Elon Musk is a vocal promoter of Dogecoin
  • Analysts say whenever the billionaire tweets about the coin, its value moves up or down
  • Some users say Musk is the top Dogecoin holder, while others say it is Robinhood

While its price still remains higher than ever, Dogecoin has quieted down a bit in a market characterized by a rapidly increasing Bitcoin price. There are some concerns surrounding the joke cryptocurrency, particularly, the fact that a single wallet address holds roughly 28% of all the Dogecoin supply.

The top Dogecoin holder has $36.8 billion Dogecoin tokens. The Wall Street Journal, however, reported that the wallet has received 28.061971 Dogecoins on multiple occasions, hinting that the number is not coincidental and it relates to the birthday of Elon Musk, the CEO of Tesla and one of Dogecoin's vocal promoters. Musk was born on June 28, 1971.

Musk regularly tweets about the meme cryptocurrency, originally created to "add humor" to the serious cryptocurrency space. Analysts note that whenever the billionaire tweets about the coin, its value moves up or down depending on his tweet content. 

During the GameStop mania, one tweet from Musk about Dogecoin catapulted its price from $0.007 to $0.07 between Jan. 28 and 29. Another tweet from Musk on Feb. 7 took Dogecoin to an all-time high at $0.088.

When the billionaire tweeted something criticizing Dogecoin's current supply concentration, the price of the cryptocurrency also fell. Last week, Musk said he was concerned as there was too much concentration in the Dogecoin price, adding that if the "major holders" sell their coins, the cryptocurrency will get his "full support."

When a Twitter user argued that Satoshi Sakamoto, the anonymous creator of Bitcoin, also owned millions of coins, Musk said Satoshi's holdings were at an acceptable percentage. "Doge is much more concentrated," he added.

Users on Reddit, however, dispute that Musk is the top Dogecoin holder. But a detailed analysis shared by u/AndreFromAlberta said it's possible that the top Dogecoin holder is actually Robinhood, the stocks and crypto trading app that was at the center of the GameStop fiasco. This theory was supported by Tom Robinson of blockchain tracker Elliptic. "The timing of its creation, and the creation of the addresses that it received funds from, match the timings of Robinhood's support of dogecoin," Robinson told Markets Insider.

Elon Musk, one of the world's richest men and Tesla CEO Elon Musk, one of the world's richest men and Tesla CEO Photo: Creative Commons