KEY POINTS

  • Elon Musk is not happy that most of Dogecoin’s supply is held by a “few people”
  • Less than 20 wallets hold about 50% of all Dogecoin supply
  • Losing Musk’s support could be a threat for Dogecoin, says Reddit users on the Dogecoin subreddit

Tesla CEO and billionaire Elon Musk weighed in on the current issue surrounding Dogecoin — its holders with a large concentration of the cryptocurrency. According to the “former” CEO of Dogecoin, if these major holders sell most of their $DOGE, Dogecoin will get the billionaire’s full support.

On Sunday, Musk expressed his disappointment with the current situation in Dogecoin, where there is a “concentration” of large holders — meaning these groups of people or entities have a very large number of the cryptocurrency.

“Too much concentration is the only real issue imo,” he tweeted.

Others on Twitter have also chimed in and voiced their support for Musk’s suggestion.

“Whales will have to consider Elon’s ultimatum here. If they comply, #Dogecoin becomes the currency of the internet. If they don’t, or “cheat” by distributing their coins across multiple wallets, then it loses Elon’s endorsement. Easy decision for the whales. Do the right thing,” said one Twitter user, to which the billionaire replied affirmatively.

Another Twitter user challenged this idea, saying that the majority of Bitcoin’s supply rests with one person. Satoshi Nakamoto, the creator of Bitcoin, is assumed to be in possession of 1 million BTC.

However, Musk said that Nakamoto’s holdings are an acceptable percentage. “Doge is much more concentrated,” he added.

Looking at BitInfoCharts.com, Musk’s “issue” is warranted. Examining all the Dogecoin wallet addresses, there is one with over 36 billion Dogecoin in their wallet, holding 28.7% of the existing supply. This address, however, has not sold since December, according to this Reddit discussion.

However, holders of the other addresses in the top 12 have been buying and selling the cryptocurrency. Around 50% of all Dogecoin supply belongs to these 12 wallets.

Whether or not these Dogecoin holders would heed the advice of Musk is something Dogecoin holders are waiting to see. The top holder of Dogecoin is also a billionaire at the current price point, so some holders question whether this holder will take another billionaire’s (Musk’s) advice about their cryptocurrency.

However, others have said the risk of losing Musk’s support is a greater threat to Dogecoin. “Do you really want to run the risk of losing the support of the richest man alive?” said one Reddit user, who argued that the top Dogecoin holder could become a trillionaire if they let go of a portion of their holdings because Dogecoin will get Musk’s support.

Tesla and SpaceX founder Elon Musk (pictured December 2020) has cultivated an "outlaw, outsider persona"
Tesla and SpaceX founder Elon Musk is pictured in December 2020. POOL / Britta Pedersen
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