Dogecoin Sell-Off: Is Elon Musk Behind the Transfer of $280 Million in DOGE?

2 - 3 minute read

The Dogecoin price has seen a significant drop in the past week, falling by around 15%. This sell-off was reignited after a Twitter vote revealed that Elon Musk is set to step down as CEO of the social media platform. Amidst this, the largest Dogecoin holder transferred 3.841 billion DOGE (equivalent to around $280 million) to another address, sparking rumors that Musk could be the person behind it.

Is Elon Musk the largest Dogecoin holder?

While there is currently no evidence linking the largest Dogecoin address to Musk, there are several clues that have kept the rumor afloat in the crypto community. One theory is that the billionaire is using the DOGE to provide collateral for margin calls for Tesla. However, a closer examination of the largest Dogecoin address reveals some unusual behavior that calls into question whether it belongs to the American trading platform Robinhood, as previously thought.

Clues pointing to Elon Musk as the largest Dogecoin holder:

  • On-chain analysis service Lookonchain conducted an investigation into the origin of the largest Dogecoin address and found that it acquired the token in large quantities between July 19 and July 21, totalling 41 billion DOGE worth $6.4 billion at the time. This acquisition came from five other addresses, with the largest share coming from an address previously believed to be linked to Musk. This address stopped accumulating DOGE one day before Musk tweeted on February 10, 2021 that he had purchased the cryptocurrency for his son.
  • Another possible indication of Musk’s involvement is the amount of Dogecoin that one of the addresses bought in February 2021: three times 28.061971 DOGE. This amount happens to match Musk’s birthday, June 28, 1971.

Lawsuit against Elon Musk:

In June of this year, investors filed a lawsuit against Musk and his companies, Tesla, SpaceX, and Boring Co, alleging that they manipulated the Dogecoin price. The lawsuit seeks $258 million in damages.

While it is still unclear whether Musk is the largest Dogecoin holder, the various clues and the ongoing lawsuit have kept the speculation alive. At the time of writing, the DOGE price is hovering just above the crucial support level of $0.07. It remains to be seen how the market will respond to the recent events and whether the rumors of Musk’s involvement will be confirmed or dispelled.

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