Most Cryptos are in the Hands of a Few Whales.
Gissis (reviewed here) just posted an interesting article that points out that most crypto assets are in the hands of a few major holders that are referred to as “Whales.” (as we all know.. 🙂 ) It is difficult to say whether this is good or bad. However, it is probably safe to say that what these Whales do with their coins will have a significant influence on cryptocurrency trading and the value of cryptocurrencies. This entire issue might not be of practical importance as it would appear to be beyond the control of the small-time crypto investor. However, it is still useful to be aware of it.
Here’s the article from Gissis…
Whales Still Control Leading Coins, Most Tokens
Despite the aim to democratize crypto assets, the leading altcoins are still concentrated in a small collection of wallets.
Most of the leading coins are still held by a small group of whales, and have not reached significantly wide adoption, a new report by Clovr shows. The discovery shows whales control the tokens even after accounting for exchange wallets.
In the case of Litecoin (LTC), just 189 addresses with high net worth could end up with more than 50% of the coins. LTC is not a proof-of-stake coin, so ownership is not as important, but still the wealth inequality is significant.
For Ethereum (ETH), just 322 “whale” wallets contain more than 50% of coins – a serious implication, given ETH will aim to include staking in its future upgrades.
The situation is a bit better with Bitcoin Cash (BCH), which is more widely distributed, to more than 1,000 wallets. But some of the BCH wallets may be a legacy from the hard fork, not deliberately chosen.
As for Bitcoin (BTC), 4,545 wallets contain more than 50% of coins. This includes exchanges, as well as older “whales” where the coins are not even moving. Rough estimates see about 3 million BTC locked forever for various reasons.
When it comes to tokens, the situation is even worse. Even leading assets with a significant wealth distribution program end up with more than 70% of their supply in the hands of leading wallets.
Stay up to date with Gissis Holding Company!
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