According to a survey by Chainalysis released this Friday (13), Dogecoin is a cryptocurrency highly concentrated in the hands of a few people. The study provides important information as the DOGE is one of the most popular currencies in the world.
Much of the market movement for this cryptocurrency meme was because Elon Musk claimed to be his currency of choice. But even Tesla’s CEO has complained about the high concentration of assets in a few addresses on the network.
The situation could be even worse than when Musk complained about this feature of the coin, as he only observed the largest whale in the net.
82% of Dogecoin is concentrated in 535 entities
According to this Friday’s Intel Chainalysis Market report, economist Philip Gradwell shared that Dogecoin is the most popular cryptocurrency of 2021, going from US$ 0.005 in January to US$ 0.73 in May, dropping to 0.27 cents. today. In the last 12 months, the cryptocurrency has been operating at a high of 7,800%, an absurd value for many.
Many people became millionaires with this movement, like a Brazilian, who bets on Dogecoin even as a savings account. Another case that gained repercussion was that of a Goldman Sachs executive who quit his job after earning millions from DOGE.
But whoever believes in the immense potential of the cryptocurrency meme may come face to face with a wall of whales that control 82% of the Dogecoins created to date, which are only 535 entities, according to a study.
“82% of Dogecoin, worth $28 billion, is networked by 535 entities.”
There are 106 billion Doges in the hands of these whales, which can move the market price if they sell their coins. As the identity behind these cards is not known, it is not known if more than one belongs to the same person or company.
In any case, the data is alarming, as the price of cryptocurrency has a strong influence on the behavior of your community on social networks, according to a recent IBM study citing Dogecoin.
Is Dogecoin being used for crimes?
Chainalysis is one of the companies that analyzes the blockchain of several companies around the world to identify how the network has been used.
And in a recent report, a study stated that Dogecoin has also received a lot of attention from criminals with its meteoric rise in the market, who have switched to trading after scams and fraud in the market.
“We’ve seen several thefts and scams involving Dogecoin this year, including a donation scam that netted fraudsters more than $40,000 after they promoted a fake initiative led by Elon Musk to pay users 10x back on any cryptocurrency sent to a address they provided, using hacked Twitter accounts to promote the coup after Tesla’s CEO appearance on Saturday Night Live.
Dogecoin has also become popular in high-risk jurisdictions like Iran.”