Last night the SNL performance by Elon Musk was indeed a tribute to Dogecoin and its great rise for the masses. Looking at it over the past few months, there is no doubt why its timing couldn’t be any better.
With the current stress faced by the lower to medium class population due to COVID-19 and job security, the meme cryptocurrency has brought about some hope for those looking to invest and make enough to keep things afloat.
However unlike Bitcoin, Ethereum or the other seasoned cryptocurrency, not many users have faith on the real use application of Dogecoin and see it more as a rumor-filled hype coin. This of course appears to be slowly changing as the market share of the coin increases and practical applications are being sought out for it.
However there is one disturbing fact that was brought up back in February which still stands. The face that the majority of the Dogecoin marketcap is being held by just a few and not evenly distributed to the masses.
In particular, Dogecoin wallet address DH5yaieqoZN36fDVciNyRueRGvGLR3mr7L which has been collecting coins from as early as February 2019 has now amounted to 26.7 billion dogecoins valued at US$22 billion. This Dogecoin whale whether an individual or a group could turn the market upside down overnight based on their hodl (hold) or sold decision.
If the whale is to distribute their share evenly over time it would provide a better long-term position for Dogecoin and the other mass investors. However if they go for a panic sale now that there is potential the hype may die down, we could see the price start to retreat just as quick.
Another interesting outcome would be if the Dogecoin whale is to swap those coins, something that might be an option in order to maintain it in the wallet instead of cashing out and paying capital gain taxes. In such case we could see the next hype coin gets its pump.