Yesterday, Twitter made a surprise move and replaced the traditional blue bird logo with the Shiba Inu dog, which represents the dogecoin cryptocurrency. This resulted in it increasing its valuation by more than 20%, and the question is logical: Who benefits from this increase?

whales. Just as the big billionaires on the Forbes list are amassing enormous fortunes, there are billionaires in the cryptocurrency space. Unlike the first, the identities of those who own large amounts of cryptocurrencies are unknown. Yes, these individuals or institutions are called “whales” (“whales“) due to the enormous amount of cryptocurrencies they hold.

How do you know whales exist?. Although the identities of these people or institutions are not known, the blockchain, which is the cornerstone of its operation, is open to the public. This great ledger lets you check which accounts hold the most bitcoin, ETH or dogecoin, and that’s why we know which are the most important fortunes in the cryptocurrencies space.

Concentration. What happens in the traditional fiat money world, which has amassed several great fortunes, is also happening with cryptocurrencies. Concentration is real and this is a problem because these whales can significantly affect the valuation of cryptocurrencies.

whale of whales. In the world of Dogecoin, there has been talk for years about a big whale that will own about 30% of the virtual currencies in circulation. The people responsible for this platform have long stated how that whale came to be – or so they did in October-November 2021 – and it was actually a collection of several accounts containing millions of dogecoins.

Elon Musk? There were rumors that this account may belong to Elon Musk, but there is no evidence about it. Of course: The billionaire has promoted cryptocurrency or others like bitcoin in recent years through messages on Twitter or actions as he has decided to take on that platform. These accounts were also suspected to belong to the Robinhood trading platform, but the company’s CEO, Vlad Tenev, denied the rumor.

Source: Blockchain.

But there are dogecoin whales (and there are a huge one). Still, services like BlockChair, which allows you to track the addresses of dogecoin wallets with the most virtual currencies, make it clear that these whales exist. Most importantly, it currently holds 33,500 million dogecoins, which represents approximately 3,060 million Euros at current value.

Behind it are two accounts with 7,500 million dogecoins, one with over 5,000 million, the other with around 3,800 million and eight more with 1,000 to 2,000 million dogecoins. From then on, the accounts shrink a little, but the concentration is clear, because account 50 in the said ranking has, for example, 225 million dogecoins, about 20.5 million euros.

Who are they? Again, it is impossible to know, but it should be noted here that some of these account addresses may actually belong to the same person or organization. At Capital, they point out that many of these accounts probably belong to cryptocurrency exchanges, which are trading markets that group cryptocurrencies in which end users have invested, but it’s impossible to reliably verify this.

Dogecoin is inflationary. Unlike bitcoin, which has a limited number of coins in circulation, dogecoin has no limit on currency issuance and is an inflationary currency. Currently, CoinMarketCap shows almost 138.8 billion dogecoins.

Someone owns 24% of all dogecoins. This account we are talking about, with 33,500 million dogecoins, therefore represents a little over 24% of the total, and it cannot be ruled out that the owner of this account actually has other accounts. There is another striking fact: the top 50 dogecoin account addresses accumulate about 70,000 million dogecoins, so the concentration is clear: 50 dogecoin addresses represent 50.43% of all issued dogecoins.

Who benefits from the rise in Dogecoins?. Clearly, these whales are the ones most affected by these rises and falls in the value of cryptocurrencies, and their holdings have grown tremendously: they are about 20% richer in just a few hours – at least the time of these portfolios in valuation – than they were yesterday.

Image | kanchanara

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