- Elon Musk has offered to buy out DOGE whales to decentralize the network.
- An additional solution proposes to migrate “small investors” from DOGE to an ElonCoin.
Created as a fun cryptocurrency, DOGE has experienced a massive boom in recent weeks that refuses to subside. The biggest promoter of the hype, the CEO of Tesla, SpaceX, and one of the richest men in the world, Elon Musk, is undoubtedly the main driver behind the rally.
Musk has been advocating DOGE for a long time. Recently, however, the number of tweets referring to the cryptocurrency has more than doubled. After Tesla’s 1.5 billion purchase of Bitcoin, there was a theory that Musk was only tweeting about DOGE to distract from his real target, Bitcoin. However, that theory now appears to be disproven, as Musk continues to tweet about DOGE.
If the major Dogecoin holders sell most of their coins, they will get my full support. Too much concentration is the only real problem in my opinion.
The centralization issue of Dogecoin
However, this issue is not new. Just a week and a half ago, Binance CEO Changpeng Zhao published a list of pros and cons on DOGE. In it, he stated that one of its disadvantages is that just 20 wallets hold more than 50% of the total supply only one wallet holds a whopping 27%.
As the Binance CEO also said, the address could belong to an exchange or mining pool. This theory could be logical insofar as the so-called “merge mining” is possible with Dogecoin and Litecoin, whereby both cryptocurrencies share the hash power and do not require additional power consumption.Regardless of this, Musk claimed that DOGE needs a redistribution of its funds so that there is greater adoption and greater benefits for all investors. Musk offered to bring such a distribution to fruition on his own and stated:I will literally pay real $ if they write off their accounts.
Supposed DOGE whales responded to his tweet. Among them was well-known community member “Bitlord,” now known as “DOGE Lord.” Another Twitter user suggested Musk invent his own cryptocurrency called “ElonCoin” to offer to “small DOGE investors.” This way, the entrepreneur would save money and could “support the community.” Musk replied: “Only if necessary”.