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$850 Million Worth of Doge Transferred Anonymously Before Elon Musk's Announcement

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Thu, 12/16/2021 - 10:04
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Arman Shirinyan
Could large transaction be tied to someone at Tesla, or is it just part of daily coin circulation?
$850 Million Worth of Doge Transferred Anonymously Before Elon Musk's Announcement
Cover image via stock.adobe.com

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Whale tracking service WhaleStats has shared a suspicious $850 million transaction of Dogecoins that might be potentially tied to Elon Musk's announcement about Tesla accepting Dogecoin for merchandise payments.

The large transaction

The transaction that appeared on the Dogecoin blockchain suggests that the anonymous "Jzi13k" has made a large transaction worth almost $1 billion to two addresses. The first address, "y3PvN," has received the major part of the transaction and now currently holds 5.3 billion Dogecoins.

The sender wallet had numerous transactions in its history and might be tied to a cryptocurrency exchange, while the recipient had only one incoming transaction on its sheets.

The unusually large transaction was made right before Tesla CEO Elon Musk announced that his company was accepting Dogecoin. After the announcement, the coin's price spiked by 30% but then retraced back to 19%.

Dogecoin community members assumed that there should be a correlation between the two events due to the rarity of such large transactions on the Dogecoin blockchain. Additionally, the recipient wallet was created with the goal of receiving the funds and has not moved them since.

Insider trading theory

Some users have also assumed that someone at Tesla or close to the matter knew about the potential announcement and bought coins prior to Musk's post to receive a significant profit from the deal.

Dogecoin Daily Chart
Source: TradingView

But such a theory does not hold water since the purchased coins have not been moved from the address; hence, they could not have been realized on the market. At press time, Dogecoin is up 13% from the announcement date. If the large transaction was part of insider trading, they would have been realized "at the top" of the rumor. In that case, the USD value of an investment would have been up 30%.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.