The ever erratic Elon Musk is back with a strange set of Tweets sending Dogecoin higher.

Tesla Will No Longer Accept Bitcoin

High Time For a Carbon Tax

Bitcoin and Coal

Working With Doge Developers

Developers? What Developers?

Futurism noted the Twitter account associated with actual Dogecoin developers immediately distanced itself from the project.

Excuse me for pointing out that working with app developers will not do a damn thing for mining efficiency and its mining that creates energy demand.

App Developers 

Mobile apps development firm AppSwarm Corp and blockchain research lab and startup accelerator DogeLabs.Io plan to build out a global Dogecoin development team that will focus on building applications on top of the memecoin’s blockchain.

The above snip is from Dogecoin to Get DevOps Support for Commercial Apps

Silliness of the Day

Tesla Accepting Dogecoin

People are excited by the possibility. It is fundamentally meaningless. 

People are speculating in Dogecoin. They are not going to use it to buy stuff and pay taxes on it.

Moreover, even if they did, how could it matter? Those who accept any crypto currency could immediately trade it for dollars. 

There could of course be a psychological impact by sheep willing to follow the leader over a cliff.

Questions Abound

  1. How could Elon Musk possibly have not understood the huge energy demand of Bitcoin?
  2. How much Dogecoin does does Musk have and when did he buy it?
  3. Is Musk purposely attempting to drive the cost of Dogecoin higher?

Questions #2 and #3 have been on my mind for a while. I did not ask them because I did not want to be accused of accusing Musk.

I am still not accusing Musk, but in light of these bizarre Tweets it's time to ask questions, and pointed ones.

Dogecoin is a Joke

It's important to step back and discuss dogecoin started as a joke, a parody on Bitcoin.

For details, please see Dogecoin, Created as a Joke, is the Epitome of Greater Fool Mania

Jackson Palmer, one of the creators had this to say. "It was a joke on a whim. ... I sat down with a beer and slapped doge's face on a coin and put it live. The next day there was heaps of retweets. ... We thought it would last maybe three days." 

That is what people are speculating on.

On Jan 28, Mr. Musk, the billionaire boss of electric-vehicle maker Tesla Inc., tweeted a faux “Dogue” magazine cover. Once, he shared a meme based on the movie “The Lion King,” with the Shiba Inu dog superimposed on Simba’s face. Another time, he wrote, “Who let the Doge out,” and “No highs, no lows, only Doge.” Mr. Musk renewed his interest in the cryptocurrency in April, tweeting “Doge Barking at the Moon.”

Who's Getting Rich?

The Jist has some details in Dogecoin: Another Bubble Or To The Moon?

The Dogecoin rich list on bitinfocharts.com shows that almost 50% of the total circulating supply is held within 12 wallet addresses, with one of those wallets containing 28.42% of the total supply.

Data also shows that ~60% of Doge is held in wallets older than 1 year old, with the remaining ~40% of Doge supply being held by traders for less than 1 year.

Dogecoin Price 

At the current price of $0.48 Dogecoin has a market cap of about $62 billion.

Someone could have bought Dogecoin for about a penny early this year. 

Dogecoin Math

One wallet has about 28% of the supply. That could be hedge fund, or a corporation or an individual. 

The current supply of Dogecoin is 129.5 billion as of May 9, 2021,

28% of 129.5 billion is 36,260,000,000. Purchased at a penny the purchase price would be $362,600,000.

If one made that investment at a tenth of a penny that would be $36,260,000.

Pointed Question

Who would or could throw that much money on a joke unless they knew something or could influence the market? 

Again, that wallet might not be a person and it could be someone mining and HODLing since the beginning. 

But given the bizarre Tweets, it's fair to ask what Musk's holding is and when he bought it.

 

This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: What’s next after cryptos meet stiff resistance

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: What’s next after cryptos meet stiff resistance

Bitcoin price has shown incredible resilience after its massive crash in the second week of June. Since then BTC has produced considerable gains over the past week and the start of a new week brings the promise of even higher returns.

More Bitcoin News

All you need to know about Cardano’s Vasil hard fork and how ADA price will react

All you need to know about Cardano’s Vasil hard fork and how ADA price will react

Cardano price seems to be preparing for massive gains as Vasil hard fork takes one step closer to becoming a reality. In a recent Twitter thread, IOHK, the developers behind Cardano announced the launch of Cardano node 1.35.0 on June 25.

More Cardano News

Traders must watch out for this bull trap SafeMoon price is forming

Traders must watch out for this bull trap SafeMoon price is forming

SafeMoon (SFM) price looks promising today for a pop higher and a test of the technical moving average at around $0.000600000. With the current soft patch in global markets, tail risks are still very much present and could flare up at any moment.

More SafeMoon News

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

Brad Garlinghouse, CEO of Ripple, has affirmed a move outside the US if the payment giant loses the SEC vs. Ripple lawsuit. Ripple has been embroiled in a legal battle, defending its sale of XRP and the altcoin's position as a non-security since December 2020.

More Ripple News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP