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Robinhood could be secretly hoarding Dogecoin, suggests Musk

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Tesla Inc (NASDAQ:TSLA) boss Elon Musk, the world’s richest man, has joined a number of other individuals speculating that retail trading app Robinhood is a cryptocurrency ‘whale’ secretly hoarding large amounts of the mem-inspired token Dogecoin.

On Monday, Musk pledged that he would give major holders of Dogecoin “full support” if they decided to sell most of their holdings, saying “too much concentration is the only real issue”.

READ: Dogecoin dragged as Musk tells big holders of meme coin he will support stash sales

At the time of the announcement, over 50% of all Dogecoin in existence was held in just 20 digital wallets, with one owner owning more than a quarter of all the cryptocurrency in circulation. However, following Musk’s intervention several of the large holders appeared to have sold their Dogecoin or moved it into different wallets, apart from the largest token holder, which according to data from BitInfoCharts increased their own holdings by over 2,000 Dogecoins.

The move has led to speculation that Robinhood is the company behind the largest Dogecoin holding, with Musk agreeing with a tweet on Tuesday saying that if the Dogecoin ‘whale’ was Robinhood the cryptocurrency has a “clear trajectory to the moon”.

This was followed on Wednesday by Musk agreeing with another tweet from a user demanding Robinhood be more transparent about its holdings and trading practices.

Musk has previously butted heads with Robinhood’s co-founder and chief executive Vlad Tenev earlier this month when the Tesla CEO questioned the trading app boss over the company’s decision to block the buying of shares in GameStop Corp (NYSE:GME) and other firms involved in last month’s Reddit-inspired trading frenzy.

READ: Robinhood boss clashes with Elon Musk over GameStop trading ban

With Tenev now facing a US Congressional heating over Robinhood’s role in the incident, more implicit criticism of the company’s transparency by Musk is unlikely to help matters.

Dogecoin was down 2.7% at US$0.05 in late-afternoon trading in London on Thursday.

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