Dogecoin vs EverGrow – are whales bad for DOGE?

The top 119 Dogecoin wallets own 71.13% of the DOGE supply.

Here's what you might be thinking:

• Aren't those Dogecoin wallets held by exchanges?
• Are Dogecoin whales bad for me, a small-to-medium investor, buying up DOGE?
• What does this even mean?

And here are the answers.

• Exchange wallets. The largest wallet owning 29.31% of the Dogecoin supply is the Robinhood wallet – but when exchanges are accounted for, there are still 108 whale wallets worth over $8 million and controlling 26% of the total Dogecoin supply.
• Are Dogecoin whales bad? Dogecoin whales have created some of Dogecoin's biggest price dumps. The concentration of wealth in their hands has been addressed by Elon Musk before as the central problem facing Dogecoin. So, arguably, yes Dogecoin whales are bad.
• What does this mean? If none of this makes sense, imagine you live in a city of 3.5 million people where a quarter of all the houses are owned by just 108 people. It might make you uneasy, right? It wouldn't be hard for these people to meet up and decide to price people out of one neighbourhood or slash rents in another, right?

The power of Dogecoin whales is in moving markets as they wish.

Which is why EverGrow is a really interesting project taking the crypto market by storm this August 2022 – it has a built-in anti-whale mechanism and fundamentals that take away some of the whale's power.

Let's look at how Dogecoin whales haved moved prices and what EverGrow is doing to stop it.

The whale that dumped a billion Dogecoin

If you've researched Dogecoin, you'll know about the all-time high of $0.7376 on May 8 last year.

But you probably don't know about the crash that happened right after it.

By May 12, the price of Dogecoin had fallen to $0.39. Anyone who had bought around the all-time high would have lost up to -47% on their portfolio within five days.

So what caused the Dogecoin price crash?

This exact topic was the subject of a viral Reddit post from /uBurnham113. He found the Dogecoin whale address responsible for dumping billions of DOGE in a 'deliberate attempt to crash the coin so they could buy back in cheaper'.

The data on BitInfoCharts is revelatory.

Between May 8 to May 10 this whale dumped 1.1 billion DOGE for $900,000 before buying the same amount of DOGE back on May 11 when the price was $0.49 and pocketing around $360,000. The same pattern of buying and selling continued again and again until the bull market was over by November last year.

According to the data, this Dogecoin whale made a total profit of $422,684,830 after buying in from late 2019.

The wallet today is worth just $48,000 down from a peak of $2.1 billion.

While this Dogecoin whale's power helped it pump the DOGE price over the course of a few months, it also crashed the price to help it make a profit – regardless of how many smaller investors were affected.

EverGrow – an anti-whale coin

For anyone interested in crypto whale games, there's an interesting section to the EverGrow white paper.

It talks about an 'anti-whale system' where any sells cannot amount to a maximum of 0.125% of the circulating supply. Such a system would have stopped the Dogecoin whale in its tracks.

But there's more to EverGrow.

The number one purpose of EverGrow is to help investors earn passive income. To finance passive income, EverGrow charges a 14% transaction tax split as follows:

• 8% as BUSD rewards
• 2% for liquidity on PancakeSwap
• 2% for buyback & burn
• 2% for marketing & development

EverGrow – a different way to make money from crypto

Immediately, the EverGrow transaction tax means a whale would have to pay a significant amount to be able to sell up. If they did, all existing investors would be earning a portion of the sell in BUSD passive income.

But the tax also leads to some fascinating situations.

For example, the EverGrow chairman Sam Kelly started out as a regular investor. He published his wallet address on Twitter and back in June confirmed he had earned $92,000 from BUSD rewards.

Here's what he said about it:

"That's out of the total $37.3 million we have paid in rewards, so only a small %.

"Many know that EverGrow pioneered core team/founders being paid via rewards only, and we published our wallet addresses.

"Our aim was to bridge the gap between cryptos & traditional companies, so it's essential that holders know the details of the core team income and where they can monitor it. I hope other projects eventually follow this example."

Crucially, the core team does not sell any tokens. But more than this, they lead the way for whales to be earning enough passive income on their EverGrow investment to not even need to dump EverGrow to buy in at a lower price.

Dogecoin vs EverGrow – are whales bad for business?

Whales are a fact of crypto investing.

There will always be people with more capital to invest – but cryptocurrencies like EverGrow are seeking to reign in the power that Dogecoin whales can exert over the market.

For example, the $422,684,830 profit of just one Dogecoin whale would have contributed $33.8 million back among all investors. With currently 140,000 EverGrow holders, such an amount would have seen an average of $242 entering each wallet as passive income – and still the whale would have earned over $388 million.

That said, whales buying up Dogecoin in early 2021 also contributed significantly to pumping the price of DOGE up to its all-time high.

What's clear is that whales are neither good nor bad for business.

The key is how they behave, and how a cryptocurrency manages that behaviour. It's here that EverGrow is bringing something really interesting and new the crypto space which will hopefully see more benefits and rewards for smaller investors too.