Here we take a look at the meme token’s circulating supply and dogecoin’s biggest holders.
What is dogecoin?
Dogecoin (DOGE) was created in 2013 by software engineers Billy Markus and Jackson Palmer, neither of whom are still affiliated with the project. The coin was inspired by the popular 2010 meme of a Shiba Inu dog called Doge, and was originally started as a joke. It was the first memecoin, and has inspired the creation of hundreds of others.
Dogecoin is an open-source, decentralised, peer-to-peer cryptocurrency, which “sets itself apart from other digital currencies with an amazing, vibrant community made up of friendly folks”.
The currency’s unofficial tagline is ‘Do Only Good Everyday’. Its community cares about supporting each other, being kind, teaching people about cryptocurrency, fundraising, having fun, making memes and being absurd.
The coin’s protocol was based on the now-defunct Luckycoin, a spinoff of Litecoin (LTC) – an early altcoin. According to Palmer, this protocol was used as means to turn the potential miners away from the project with the aim of making it fail. However, that did not go as planned and Luckycoin was removed from DOGE’s protocol since it was causing a number of problems.
In 2014, the Dogecoin Foundation was established by the project’s creators. It aims to provide support, advocacy, trademark protection and governance for the DOGE cryptocurrency project.
Although started as a joke, the coin soon found utility as its low value made it popular for small online transactions, such as tipping strangers anonymously on the internet.
Recently, Markus had even asked Twitter to add dogecoin to the Twitter tip jar, as “it just makes too much sense – the OG tipping cryptocurrency on the internet belongs there”.
According to data provided by CoinMarketCap, DOGE does not have a maximum supply. This makes the digital asset an “inflationary coin”, while cryptocurrencies such as bitcoin are deflationary because they have a limit on how many tokens can be mined.
Every four years the number of bitcoin tokens released into circulation is halved.
“As with all commodities, cutting the supply in half will create a supply shock and a price spike — and that’s essentially what the halving cycle does,” Morgan Stanley’s Investing in Cryptocurrency report noted.
Up until 2014, dogecoin was also halved. The final dogecoin halving event took place in April 2014, when the payout was reduced from 250,000 to 125,000 coins a block. Later on, however, the cryptocurrency’s protocol was changed to provide an unlimited supply so the halving events were no longer necessary.
Dogecoin itself noted that the fact that it does not have a maximum supply does not make its total supply unlimited.
“The only difference is that Dogecoin’s issuance does not have an end date. Therefore, Dogecoin is only “infinite” over ‘infinite time’. Over finite time, its issuance is, in fact, finite.”
As of 29 July, the total supply of dogecoins mined amounted to more than 132 billion. All tokens mined were in circulation. The cryptocurrency had a market capitalisation surpassing $8bn and was ranked the 10th biggest cryptocurrency, surpassing “dogecoin killer” Shiba Inu and “Ethereum killer” Polkadot.
Who owns the most dogecoins?
Over the years, there has been a lot of speculation about who has the most dogecoins or who are the biggest dogecoin whales. A crypto whale is an entity – be it an institution, individual or exchange – that owns a significant amount of a digital asset and therefore can influence the price.
What is your sentiment on DOGE/USD?
In 2021, news reports started referencing a “mysterious dogecoin whale” who owned $22bn of the asset at the time. Some alleged that that person was Elon Musk, as his support for the cryptocurrency was documented online in a series of twitter posts and during an appearance in an episode of Saturday Night Live (SNL). But there is no evidence to support the claim that it was him.
Other guesses included the US-based trading platform Robinhood (HOOD), however, the company’s CEO Vlad Tenev denied the rumours.
According to data provided by intotheblock, there are seven top holders of dogecoin, as of 29 July. The wallets are anonymous due to the decentralised nature of cryptocurrencies. Intotheblock noted that the biggest DOGE whale owns 30.16% of the total circulating supply of the cryptocurrency.
The top holder’s account’s balance surpassed 40.84 bn DOGE coins which amounted to $2.55bn at the time of writing. According to blockchair, the account’s address is DPDLBAe3RGQ2GiPxDzhgjcmpZCZD8cSBgZ.
The second biggest dogecoin whale owned just 5.35% of the total circulating supply of the cryptocurrency which amounted to 7.25bn DOGE tokens ($452.1m, as of the time of writing).
Anndy Lian, chairman of BigONE Exchange and the author of Blockchain Revolution 2030, told Capital.com that dogecoin concentration may be a real issue.
Lian also referenced the speculations that the biggest dogecoin holders were either Musk or Cuban but noted that who the owner is, is not as important.
Dogecoin reveals the biggest whale wallet
Dogecoin has also addressed the speculations and rumours surrounding who the biggest dogecoin holders are.
Dogecoin said that “many of the top Dogecoin wallets are cold wallets or hot wallets controlled by exchanges and brokers, and they thus represent Dogecoin held in custody for thousands – or hundreds of thousands, even – of people.”
The meme coin’s team noted that many of the biggest holder wallets appear to be managed by trading platforms, as they exhibit patterns of activity and volume that are typical of crypto exchanges or brokerage services holding large amounts of collateral.
What does ownership concentration mean for the token?
HOKK Finance’s Basa added that knowing who the top dogecoin holders are could expose their motives.
CoiLoan’s Shilo added that DOGE can be a great investment for novice traders since it is known for its “massive pumps,” however, highlighted that “owning it comes with risks… as it has a structure, in which most of the tokens are found in 1-2 wallets.
Note that analysts’ predictions and opinions can be wrong. Knowing and following the biggest cryptocurrency whales shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before trading. And never invest or trade money you cannot afford to lose.
Original Source: https://capital.com/who-owns-the-most-dogecoins
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.