Elon Musk said that whales are the Dogecoin community's “one big problem.”Most people know that Elon Musk's Tesla stores dogecoin. Most likely a lot of Dogecoins. But just because Elon Musk has caused Dogecoin (DOGE) prices to go up more than once doesn't mean that having a lot of cryptocurrencies is always a good thing.
The tweet got about 300,000 likes, and Musk later said on Twitter that he thought there was too much “concentration” of Doge in the hands of a few whales. When you look at the numbers from today, you can see that not much has changed.
Due to the whale, Dogecoin didn't reach its all-time high on May 8, 2017. That day, the highest price for Dogecoin was $0.7376.
You'll already know this number if you've read up on Dogecoin. But you probably don't know that in only four days, the price of DOGE dropped to $0.39. If people had bought at the peak, they would have lost 50% of their portfolios because of the drop.
So, what made the price drop so quickly?
The answer is, of course, to sell. On May 8, however, a whale caused 1.1 billion DOGE to be lost. The transactions were found because of a post on Reddit. The original poster said the whale was “trying to crash the currency so they could buy it back for less.”
The whale made this same “pump and dump” pattern over and over again until he had made a total of $422,684,830. It's true that the whale bought DOGE years before the all-time high, but by that time, it had enough power to change the price of Dogecoin on the market.
Why is it a bad idea to put a lot of money into Dogecoin?
The main reason Elon Musk backs DOGE and the Dogecoin Foundation is easy to grasp. Trying to make Dogecoin a digital currency that can compete with cash.
You might not have thought about it much before, but you should now. Dogecoin doesn't want its price to go up and down like other cryptocurrencies and be affected by speculation. It wants to be as stable as possible instead. People like Elon Musk and Mark Cuban think that it's a good thing that Dogecoin is a token that keeps growing.
Do you know of any other coins that could compete with whales?
Yes, and anyone who wants to buy cryptocurrency would be smart to find out more about them.
EverGrow will probably be one of the most valuable tokens on the market in 2022. EverGrow published a white paper about a “whale-fighting mechanism” that limits sales to 0.125% of the total supply.
With this kind of tax, the Dogecoin whale would not have been able to sell as much DOGE.
But playing whale games isn't the only way to make money with your EverGrow account. The project's goal is to make it less likely that whales will sell their EGC tokens and more likely to keep them for the long term.
Why are they doing this?
You must pay a 14% transaction tax when buying something from EverGrow. The stablecoin BUSD owners get back 8% of this tax, which is the biggest part of it. You must pay the tax whether you buy, sell, or give away EverGrow. Visit bitcoin-pro.app to receive an accurate picture of the trading of bitcoins.
Precisely this is what EverGrow can do. As soon as the project started in the second half of 2021, it was announced that all team pay would be given in BUSD based on how much each person had invested. Sam Kelly, the chairman of EverGrow, made $92,000 in 8.5 months from the company stock he owned.
He even told everyone where it was, so anyone could check to see if he was telling the truth when he said he had never sold up.
Should the fact that there are dogecoin whales make me nervous?
When you put money into DOGE, you will always get dogecoin whales. They're still where they were. It's not likely that they'll go anywhere. You need to learn to watch what they do and figure out when a price drop is just a move by a whale to buy tokens back at a better price. You can do this by learning to spot a “whale move” when a price drop happens.
And if you think the risk is too high, you should look into other programs that try to make the most powerful whales less destructive. EverGrow does a great job of giving some of this power back to investors who have put in the least amount of money.