It is no longer news to the cryptocurrency world that the CEO of Tesla and SpaceX who also doubles as the planet’s wealthiest man, Elon Musk, recently declared that his electric car company, Tesla, will start receiving payment using the dogecoin meme cryptocurrency.
Elon Musk’s announcement contributed immensely to the upsurge of the dogecoin movement in the crypto market as it is gradually becoming a force to reckon with.
This landmark turning point for dogecoin could be said to be a misfortune for Bitcoin as Elon Musk said Bitcoin is not a good enough substitute for transactional cash in the world of cryptocurrency.
However, there is a tracking outfit that goes by the name WhaleStats and further made it public that a skeptical and heavy sum of $850 million transactions of Dogecoins might be linked to Elon Musk’s announcement about his company accepting the Dogecoin for merch payments.
This speculation has led to a series of uproar as many fingers are being pointed at Elon Musk that he has an ulterior motive for publicly commending dogecoin at the detriment of Bitcoin, while some think that the sum close to a billion-dollar worth of dogecoin is the trigger behind Musk’s announcement but he only uses the disguise of pushing for the institutionalization of the digital era.
The Exceedingly Large Transaction
Based on the revelation of WhaleStats, the transaction, though not yet confirmed to be true, not only surfaced on the Dogecoin blockchain but also suggests that the anonymous “Jzi13k” has made a very heavy deposit of almost $1 billion to two different addresses as destinations.
Furthermore, the first address that received the large and lion share of the transaction is tagged “y3PvN.” The address, at the time of filing this report, holds up to 5.3 billion Dogecoins.
The wallet belonging to the sender has quite a several previous transactions as its history and this can be easily predicted to be a cryptocurrency exchange, while the receiver, on the other hand, had only one transaction as its history.
The actual sum is $5,351,593,214 $DOGE (USD 844,626,000).
The Theory Of An Insider’s Knowledge
Many social media users have also come to the assumption that an important figure at Tesla Inc. or close to Elon Musk himself knows about the imminent announcement and then bought those coins before Musk’s post in a bid to receive a large chunk of the profit of the transaction.
However, harboring such a theory does not stand the test of time because the coins bought are still in the address; so, there’s no way they could have been realized as the profit of the deal on the market.
Barely two days after the announcement, Dogecoin has risen to 13%. If the assumption that the transaction is with an insider’s knowledge were to be true, they would have all been achieved. Going with that understanding, the value of the US dollar would have been up to 30%.