Crypto 'Whales' Dominate Ownership Of World's Largest-Ever ICO

Ownership concentration has become a commonplace problem in the cryptocurrency market - but even this is extreme.

We've reported on bitcoin's whale problem, where roughly 40% of all the bitcoin in circulation - an amount worth some $51 billion - are held by a group of less than 1,000 people, many of whom were among the earliest adopters.

In fact, it's widely believed that bitcoin founder Satoshi Nakamoto alone controls a combined 1.1 million bitcoins (though it's impossible to discern an exact number).

Ethereum is even more concentrated, with 40% of the total float owned by 100 people. But even Ethereum pales in comparison to Block.one, the largest ICO in history, which raised more than $4 billion last week.

According to Bloomberg, the 10 largest Block.one owners hold nearly 50% of coins in circulation.

EOS

The largest holder is the company itself, with 10% of the total. This situation mirrors that of Ripple, which was criticized earlier this year when CEO Chris Larsen briefly saw his net worth eclipse that of Mark Zuckerberg when ripple rallied 1240% in the span of a month, briefly making it the second-largest cryptocurrency. Larsen alone held a 17% stake in the company, raising hackles about the ease with which he and other ripple founders or early adopters could influence the price in their favor.

And it's likely traders will soon begin sharing similar warnings about Block.one, as the token's price rallied 13-fold.

Though they have smaller market caps, the coins Qtum and Storj are even more concentrated than Block.one, with the top holders controlling 90% of the coins in circulation, according to an analysis by Tetras Capital.

Comments

zebra77a Cryptopithicus Homme Tue, 06/05/2018 - 16:42 Permalink

[ALL] ICOs are just scams and marketing puff.  Stay away from them or at least be an expert when to get out..

Fixed it for you..

 

there is a REASON that CryptoExchanges will not regulate because the public would soon discover that Exchange crypto is leveraged against blockchain crypto.  It has NO value whatsoever..  The Exchange Crypto could be 10:1 against blockchain crypto. This scam is EPIC in proportion and size.

 

But that's ok, the atypical 'hacker ate the client coins' is the norm, it's only been done like 1/2 dozen times..

There WILL be an regular exchange shutdown and lockout while the Whales issue and pre-buy the new fraud coin. 

In reply to by Cryptopithicus Homme

Lore zebra77a Tue, 06/05/2018 - 16:54 Permalink

Agreed. Everybody's trying to push their own flavor of bullshit.

Cryptos are empty lists, databases of nothing, with complex but "secure" primary keys.

It appeals to many among the masses who grew up in the broader Something-For-Nothing religion.

CONGRATS to the sociopaths and true believers who're getting rich off the stubbornly stupid.

In reply to by zebra77a

zebra77a mrtoad Tue, 06/05/2018 - 20:08 Permalink

its pretty straight forward coinbase has 1300 plus cryptos. Of these there are approximately about 20 different protocols such as x11 and so forth which you can pick up reading ccminer source code..

So an X11 protocol cannot talk to x13 whatever.. So exchanges have to create virtual crypto to  represent the blockchain crypto. Its a complete futures exchange.. it works fine as long as more money is flowing into the exchange than out.. but once withdrawls shoot up they can get caught underwater.. true blockchain on ONE crypto takes up to 6 minutes to confirm the transaction.. Instananeous trades are not real!

So usually the exchanges will fake a hack and close out the accounts. Remember their not regulated or accountable and by doing so they can off with 100's of millions.. 

Secondly if they want to try a more honest way to rob their clients is to drop bitcoin price and as clients slowly sell out the return on accounts is a fraction ..

So if they sell you a digital widget for 10k and then drop it to 8k ( remember they can make UNLIMITED virtual bitcoin to drop price)

if you sell out they keep 2k..

In reply to by mrtoad

Grave Cryptopithicus Homme Tue, 06/05/2018 - 18:24 Permalink

beginners guide to cryptocurrencies:

  1. bitcoin is the blockchain - period - anyone telling you otherwise doesnt know shit or is lying to your face
  2. there is only one bitcoin, with core development team (failed shitforks are bankster sponsored hostile takeover attacks)
  3. if it doesnt have its own blockchain, its worthless shit (basically all the parasitic ico/token shit)
  4. if its network isn't in at least thash range, its worthless shit (any retard can take over the network)
  5. if its not compatible with bitcoin (segwit, lightning network, atomic swaps, etc), its worthless obsolete shit
  6. if its not deflationary, its worthless shit

all the fraudulent ico shit has only one purpose - noob fleecing

In reply to by Cryptopithicus Homme

Exponere Mendaces Cryptopithicus Homme Wed, 06/06/2018 - 16:43 Permalink

You Cashies have no fucking idea what is about to happen to you.

Its all here, scaling problems with your shitfork that were never resolved - systemic flaws that affect ETH, EOS, BCH -- https://hackernoon.com/the-ethereum-blockchain-size-has-exceeded-1tb-an…

I don't expect you to read or understand it, but it will be useful to those that don't have their heads up Lyin' Ver's asshole.

For laughs -- here's another Cashie retard -- https://media.discordapp.net/attachments/400797820292169729/45401468782…

The fucker that took the APC and went on a joyride in Richmond, VA loved BCH too. Its the litmus test for retards.

In reply to by Cryptopithicus Homme

JelloBeyonce Cryptopithicus Homme Tue, 06/05/2018 - 18:10 Permalink

If it has value, either sustainable or fadish, that value will eventually be concentrated into the hands of a few.

This can be applied universally.
It is similar to the Pareto Priniple - The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes.

Plutarch, Adam Smith, Thomas Jeffeson, and other economic Historians noted that wealth always concentrates into the hands of the few.

There are 23,700,000 Bitcoin adresses as of now, and 1,000 people own 40 percent of the total value.
That's fairly inequitable to me.

If you look at the chart here:
https://steemkr.com/bitcoin/@scandinavianlife/how-many-people-own-bitco…

It shows that .09% of the addresses own 92.14% of the total value.

In reply to by Cryptopithicus Homme

thisandthat raybies Thu, 06/07/2018 - 11:48 Permalink

That's how they'd like you to picture them, for some reason: poor old plain rich people with not much of a real influence (clue: so do your "regular" jews, over their influence in US politics, media and Hollywood...). But when their (and other's) fortunes are in hidden in trust funds, fiscal paradises, etc. (like Niue and others), you can never really tell (but you can guess). Then again, influence comes from connections, mutual interests, and owed favors, as well.

In reply to by raybies

JelloBeyonce Ambrose Bierce Tue, 06/05/2018 - 18:30 Permalink

Kind of like the banks, stores, and anyone else pre-Fed whom wanted to "create" their own currency, similar to "wildcat banking" during the "Free Banking Era".

Look at how that turned out..............

The criminal Fed exists because people are too stupid on their own accord to act resonably.

We continually fail to learn from past mistakes.

"In the United States, the Free Banking Era lasted between 1837 and 1866, when almost anyone could issue paper money. States, municipalities, private banks, railroad and construction companies, stores, restaurants, churches and individuals printed an estimated 8,000 different types of money by 1860. If an issuer went bankrupt, closed, left town, or otherwise went out of business, the note would be worthless."

In reply to by Ambrose Bierce

lester1 USA USA Tue, 06/05/2018 - 16:28 Permalink

All of all of these cryptocurrencies are nothing but pump-and-dump Ponzi schemes.

And good luck getting your money back when the coming crash happens and you need liquidity. Coinbase and Gemini will go tits up and you will be screwed. A lot of these whales are going to get wiped out. And I say good!.. Their greed should be punished.

In reply to by USA USA

freedogger USA USA Tue, 06/05/2018 - 16:40 Permalink

These tokens were all pushed to exchanges in the last few days by a lot of people that don't want to deal with jumping through the registration hoops. So you can't make any statements about which addresses "own" EOS it at this point. Stupid fucking article.

In reply to by USA USA