Whales Remain in Charge of Top Cryptos and Most Tokens

News / 19.12.2019

A small group of whales hold the majority of the top cryptos and are yet to attain a remarkable wide adoption, according to a new report by Clovr. The report maintained that aside exchange wallets, whales are in charge of the tokens.

As for Litecoin, only 189 addresses having huge net worth may eventually have over 50 percent of the coins. Ownership is not crucial for LTC because it is not proof-of-stake crypto; however, wealth imbalance is remarkable.

The number of the whale with wallets containing over 50 percent of Ethereum is only 322. This is a critical issue because the focus of ETH is to add staking in its future upgrades.

Things are somewhat different for Bitcoin Cash as it further widely distributed to over a thousand wallets. However, certain Bitcoin Cash wallets could be a legacy from the hard fork, not intentionally selected.

Over 50 percent of Bitcoins are within 4,545 wallets. Exchanges and older “whales” where the coins are not even moving are included. According to estimates, almost 3 million BTC are locked forever for a variety of reasons.

Things are worse for tokens as top assets with a remarkable wealth distribution program eventually have over 70 percent of their supply with top wallets. The report maintained that:

“The tokens that showed the greatest concentration of wealth in the fewest addresses were all tokens that have relatively small market capitalization – $100 million or less.”

Every asset possesses different risks of “top-heaviness,” and a token or coin purchase has to do with research per time. The attempt by founders or developer teams to sell assets to naïve investors is the greatest risk for certain tokens.

 

Source: CryptoPress.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.