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Less than 6 accounts control 80% of the assets of the main stable coins

June 10, 2020

A report published by CoinMetrics found extreme centralization of prosperity on many of the key stable coins. At least 80% of the total capitalization of the five best stable coins is accounted for by fewer than six accounts.

CoinMetrics found that The majority of at least 20% of transfers made with the most stable coins are worth less than $ 100, showing that stable tokens are used extensively as a form of payment.

The report also found that More than 40% of the transactions carried out with the Paxos Standard Token (PAX) are directly connected to a single multi-level marketing Ponzi program. or MLM.

Stable coins show extreme centralization of wealth

Less than 6 accounts control 80% of the assets of the main stable coinsLess than 6 accounts control 80% of the assets of the main stable coins

The report found that Many stable coins show an extreme centralization of wealth;; Less than six Gemini Dollar (GUSD), Binance USD (BUSD), Huobi Dollar (HUSD), Tether (USDT), and USDK network accounts account for over 80% of each token’s capitalization.

USDT issued on Ethereum was by far the most pluralistic stable coin market, since almost 1,600 accounts made up 80% of the wealth. It was followed by USD Coin (USDC) and TrueUSD (TUSD), each with almost 200 accounts, followed by USDT, based in Omni, with more than 150 accounts

Stablecoin wealth distribution

Stablecoins wealth distribution. Source: CoinMetrics

In relation to the total number of transfers made with stable tokens USDC is the second most widely distributed;; More than 20% of the purses control 80% of transfers, followed by Omni-based USDT and GUSD at almost 20% and TUSD at almost 15%.

Distribution of stablecoin activities

Distribution of stablecoins activity. Source: CoinMetrics

Paxos allegedly understands fuel for MLM Ponzi

At first glance, the results seemed to show significant pluralism in the Paxos network Almost 50% of the purses accounted for 80% of the total token capitalization.

However, a closer look shows this The two most active Paxos accounts are directly connected to the MMM BSC Ponzi. The program has grown exponentially in the past year;; It currently accounts for almost 40% of all activities in the Paxos network.

Percentage of PAX transactions related to MMM BSC Ponzi

Percentage of PAX transactions related to MMM BSC Ponzi. Source: CoinMetrics

CoinMetrics found that too The most active Tron-based USDT accounts were associated with dividend payments, which accounted for more than 90% of network activity on certain days.

Transfers less than $ 100 account for at least 20% of stablecoins activity

At least 20% of transfers with 8 of the 10 stable tokens examined by CoinMetrics are valued at less than $ 100.

Less than 4% of transfers are valued at more than USD 100,000 for all stablecoins except HUSD and BUSD. Remittances in excess of $ 100,000 account for more than 35% of HUSD activity, and approximately 17% involve BUSD transactions.

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