Analysts from Santiment, a leading cryptocurrency research firm, have suggested that whales, or large holders of Dogecoin (DOGE), were aware of the recent rise in the meme-inspired cryptocurrency. By examining on-chain metrics, including coin rate movements, owner actions, and the likelihood of further asset growth, Santiment analyzed the market dynamics surrounding DOGE. The surge in DOGE’s price began on April 3, when billionaire entrepreneur Elon Musk changed his Twitter logo to the image of a Shiba Inu dog, which is the symbol of Dogecoin. Santiment notes that the crypto community is well aware that when Musk makes any moves on social media, his motives could be to have fun, gain attention, or make money, and perhaps in this case, all three goals were achieved. The day after Musk’s Twitter logo change, the price of DOGE skyrocketed by over 33%, surpassing other cryptocurrencies in terms of growth.
This occurred in two waves, with a significant price jump that started and ended almost immediately after the news, followed by a second wave of growth. However, by April 6, at 13:30 Moscow time, the DOGE rate had fallen to $0.09. Upon analyzing transaction data and market indicators, Santiment analysts identified various signals that indicated when large players, who were likely aware of the planned DOGE price increase, were exiting the asset or taking significant profits. Santiment explained that when the number of active addresses, trade volume, transaction volume, and whale transactions (addresses with holdings of over $100,000) all increase sharply during a period when the asset is experiencing growth independently of other markets, it is usually a sign that a local price top is forming, and taking profits at this point could be a wise decision. The analysts also studied the behavior of DOGE holders, categorizing them based on the number of tokens held into four categories:
Pisces (0–10 DOGE),
Dolphins (10–10,000 DOGE),
Sharks (10,000–10 million DOGE),
and Whales (10 million or more DOGE).
According to their findings, Pisces addresses aggressively bought DOGE when the price peaked, which is a typical sign of a price top. However, Dolphins and Sharks did not show signs of participating in the rally. Interestingly, the Whales, or large DOGE holders, seemed to have foreknowledge of the Twitter logo change, as they bought small amounts of the token in anticipation of the price jump. As soon as the price of DOGE spiked, these wallet owners took profits, suggesting that they may have had inside information. However, it’s important to note that the identity of these wallet owners remains unknown, and these are mere speculations, as clarified by Santiment. It’s worth noting that Elon Musk himself has no direct connection to these alleged whales. If there was evidence of communication between Musk or his partners and unknown large DOGE holders in his messenger, it could potentially lead to criminal prosecution, as insider trading is punishable by up to 20 years in prison in the United States.
For example, in the past, former hedge fund trader Matthew Martoma was sentenced to nine years in prison for participating in the largest insider trading scheme in US history, earning millions of dollars through illegal use of insider information. In the case of Elon Musk, his actions have contributed to the increase in DOGE’s market capitalization by $1.7 billion, and he has previously caused significant fluctuations in the prices of cryptocurrencies such as Bitcoin, DOGE, and SHIBA, potentially amounting to tens of billions of dollars. However, cryptocurrencies are different from stocks, and the identity of the mysterious whales in this case remains unknown and may never be revealed.
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