After selling Dogecoin a number of instances on Twitter, Tesla CEO Elon Musk discovered a severe cryptocurrency drawback and complained that a small group of whales management many of the DOGEs that exist.
The analytics firm CoinMetrics revealed a report agreeing with Musk’s assertion and revealed one other drawback with digital forex.
In line with the corporate, solely 100 wallets account for nearly 70% of all DOGE cryptocurrencies, which implies that Elon musk’s tweets profit a small group of whales.
Elon Musk appears to have taken observe of the state of affairs and posted on Twitter that Doge’s focus is a significant issue, asking whales to surrender their cash, in any other case he’ll not assist the forex.
“If the primary Dogecoin holders promote most of their cash, they may have my full assist”, he stated on Sunday (14).
Responding to Musk’s tweet, a consumer pointed that whales should contemplate the ultimatum billionaire’s as a result of “In the event that they do, DOGE will develop into the forex of the Web. If they don’t, or cheat, by distributing their cash in a number of wallets, they may lose the assist of one of the crucial influential males on the planet. Straightforward determination for whales. Do the suitable factor ”, he wrote on Twitter.
Dogecoin, subsequently, could lose the assist of Elon Musk, and thus, the cryptocurrency definitely tends to have a large devaluation, since naturally Musk will promote another cryptocurrency that’s not centralized within the fingers of some folks.
Dogecoin can undergo assault 51%
For CoinMetrics, the centralization drawback will not be the one one at Dogecoin, for the reason that forex hash price is properly under historic highs, regardless of the surge in costs.
The corporate explains that though the DOGE value elevated by 1200% within the yr, the hash price, that’s, the mining energy of the community grew solely 15%. This makes the coin a goal for a 51% assault.
If a adequate variety of miners come collectively, they may have the ability to perform a 51% assault on the forex, and thus, select which transactions are processed on the community.
Whoever has management of 51% of the community may reorganize the transaction historical past and consequently spend a number of currencies twice, an motion often known as double spending.
For CoinMetrics specialist Lucas Nuzzi, Dogecoin’s lack of maturity and seriousness ought to be considered by buyers as a warning: “Do not put your cash in a meme”, stated he.