- The story of the world’s largest dogecoin holder may be less fun than social media investors and Elon Musk fans would like.
- A lead developer of Dogecoin told Insider that the so-called whale address is likely to belong to a crypto exchange.
- However, it is impossible to truly verify the owner of the whale’s address until they do show up.
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The story of the world’s largest dogecoin holder may be less fun than social media investors and Elon Musk fans would like.
Since the Dogecoin rally this year, news outlets (including Insider) and investors have been wondering who could be behind the $ 12 billion dogecoin address. DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L. It has accumulated 36.7 billion dogecoins since 2019 and holds around 28% of the overall dogecoin supply.
While it’s fun to speculate that the address belongs to a single individual who has surreptitiously accumulated billions of dollars from meme currency, it is more likely that the address is associated with a cryptocurrency exchange, said Patrick Lodder, a core dogecoin developer.
As for the fun additions to the address, like adding 420.69 dogecoins to the account on Tuesday, Lodder said they are probably just pranksters sending relatively small amounts of dogecoins to the well-known address. whales for fun.
Lodder, who has been working on doge since 2014, clarified that anyone can send a doge to a public address, so money entering an address is never really a “clue” to the identity of the address. unless it’s a very big increase.
“They are all wild cards, it probably has nothing to do with the operator of the wallet, they are just people having fun,” he said of adding 420.69 and the additions. of 28.061971 dogecoins on three occasions, referring to Elon Musk’s birthday June 28, 1971.
The Address of the Whales has racked up over $ 12 billion in doge and sells very rarely. The last time a doge left the wallet was a sale of 100 million coins in April 2021, the only such transaction in 2021.
The CoinDesk research manager told Insider that this dormant activity could mean that the whale is not, in fact, an exchange, but simply an individual. But Lodder said there was a possibility that this type of activity could mean the address is a cold wallet for an exchange. An exchange that keeps a lot of doge is unlikely to keep it on the server, but offload its holdings to more secure offline storage like a cold wallet. It might also help explain why there were a lot of additions to the address but not a lot of sales.
“Looks like someone is putting a lot of money in custody and putting it in a cold wallet to make it safer,” Lodder told Insider.
He later said in a follow-up email: “While it’s fun to speculate on ownership of the wallets, the only way to be 100% sure who owns what is when the owner presents proof ( Even if you know everything there is to know about blockchain, there is always a risk that you will come to a bad conclusion without this proof, so I caution everyone to be careful when posting hypotheses. ”
People have posted many hypotheses on online forums about who the address might belong to. An account on Reddit hypothesizes that this whale address could be one of Robinhood’s many dogecoin addresses. The user traces the data chain and assumes that the address is one of Robinhood’s cold storage portfolios.
Despite the Reddit post receiving 4,000 upvotes, there is still a group of people speculating that the wallet may belong to the “dogefather” himself, Elon Musk.
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Lodder said it was highly unlikely that the account would be one person, but the best way to clarify matters would be for the owner to come forward and claim the address. However, this would be risky considering the amount of money in the account.
Like many cryptocurrencies, dogecoin is decentralized. The lack of central authority is at the heart of crypto’s mission. This makes the asset more secure and less vulnerable to the vagaries of a single entity, but it also allows rumors and speculation about the coin to go unchecked at times.
These rumors can be potentially dangerous for a cryptocurrency like Doge and its loyal investors, Lodder said. Speculation that there is a whale could cause people to panic in hopes that the whale will throw all of their doge, he added.
He said that ultimately, if the address belonged to an exchange, it would benefit the dogecoin community if the exchange happened. Most cryptocurrency exchanges do not disclose their addresses for dogecoin or any other crypto.
“It would be useful for the dogecoin community, not even just doge but for all cryptocurrencies, if there was a good way to either independently verify that a custodian exchange’s books are in order or to have an audit report from a professional firm that does the audit and certifies that everything is fine, ”Lodder said.
He concluded, “It’s a part of compliance that we don’t really see too often in crypto.”