Whale crypto-transfer analytics firm WhaleStats revealed that $855m worth of DOGE was allegedly transferred between two anonymous wallets a few hours before Elon Musk tweeted about Tesla supporting DOGE payments for Tesla car purchases. This has left many crypto enthusiasts wondering about the relationship between the transaction and Musk’s announcement.
The Whale-Like Transaction
The Dogecoin blockchain data indicates that the substantial DOGE transfers occurred between anonymous wallets “jzi13k” and “y3pvn,” with the former address now holding about 5.4B Dogecoins. Whalestats further predicted that the sender might be a crypto exchange because of its numerous transaction history. But the receiver’s identity couldn’t be determined as this was the only transaction displayed on its transaction history.
https://twitter.com/whalestats/status/1471384725063630854?ref_src=twsrc%5etfw
You’d recall that DOGE price surged by almost 35% following the announcement before a retrace back to about 20%. Many members of the Dogecoin ecosystem agree that there is a link between the two events as it is not common for such transactions to occur on the Dogecoin network. Furthermore, the receiving wallet hasn’t moved the funds since receiving it, which might seem like it was only created to receive funds.
Is Tesla Staff Or Executive Involved?
Some traders have postulated that a Tesla staff or high-ranking executive might be involved in this transaction because of the transaction’s timing. The goal of this person would be to earn huge profits from buying the coins at a low price before Musk’s announcement to selling for profits following the spike after Musk’s announcement.
DOGE 24-hour price chart. Source: TradingView
However, the basis of such analysis may not be valid since the recipient failed to move the coins since that time, and the DOGE price has retraced from the initial spike after the announcement. As of this writing, DOGE price has surged by 14% since Musk’s statement compared to the 30% spike almost immediately after the announcement.
If the buyer of the coins wanted to make profits, he would have sold them almost immediately after the announcement, and that would have fetched him a significant sum in profits. After all, a 30% gain is better than a 14% gain in almost every aspect.
A Gaming Giant Now Supports DOGE Payments
As the rumor rages on about the supposed insider trading before Musk’s announcement that Tesla would start supporting DOGE payments, another gaming project has announced that it now supports DOGE payments. The U.S. subsidiary of Nexon (a leading gaming project with headquarters in South Korea) has announced a partnership with a famous crypto payment solution firm, BitPay, to support several digital asset payments for their in-game items, with DOGE included as one of the digital assets.
BitPay boss, Stephen Pair, remarked that the collaboration with Nexon will enhance Nexon players’ in-game experience. While Nexon added BTC to its investment portfolio earlier in the year, the company has clarified that there is no relationship between their BTC purchase and the support for digital asset payments for its in-game items.
