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XRP and XLM Have Highest Level of Wealth Inequality Among Top Cryptocurrencies: CoinMetrics Report

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Tue, 02/18/2020 - 16:47
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  • XRP and XLM create a non-level playing field for its holders, according to a recent CoinMetrics study

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Contents

Wealth inequality is a hot-button issue around the globe. With an extreme concentration of coins and tokens in the hands of omnipotent whales, crypto clearly fails to address this problem.  

According to Coin Metrics' latest 'State of the Network' issue, XRP and Stellar (XLM) have the highest disparity of wealth among some of the top blockchains. The later takes the cake when it comes to inequality with whales that hold at least 1/1K of the total supply controlling a whopping 95 percent of all tokens. 

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Centralization concerns 

There is nothing shocking about XRP and XLM occupying the two top spots given that both of these cryptocurrencies are routinely criticized for being extremely centralized.

Ripple Labs fully controls nearly 60 percent of XRP's total supply. To put this into perspective, the company's former CEO Chris Larsen personally owns 5.19 billion XRP.   

XRP Supply
image by coinmetrics.substack.com

The same applies to the Stellar Development Foundation (SDF) that holds more than 50 percent of all tokens and pocketed 98 percent of all inflation payouts on top of that. 

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Bitcoin's increasing distribution 

Meanwhile, Bitcoin (BTC) appears to be the most egalitarian cryptocurrency in terms of supply distribution. The richest whales hold only 11 percent of all orange coins, a world of difference compared to the altcoins analyzed by CoinMetrics. Ethereum (ETH) and Litecoin (LTC) are at 46 percent and 40 percent respectively.   

The firm pointed out that the increasing level of distribution is a positive development for BTC since it underscores its growing adoption.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Bitcoin (BTC) Scammers Impersonate Bill Gates and Endanger Almost 30K YouTubers

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  • Bitcoin (BTC) scammers know no quarantines or self-isolation. Dozens of fraudulent airdrops falsely endorsed by Bill Gates ask YouTubers to send in their Bitcoins.

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Typically, fake YouTube airdrops are quite similar to each other. With the current pandemic enraging across the planet, a series of scams that impersonate Bill Gates have some distinct features.

With Bitcoin (BTC) Price Drop, Scammers are Getting Greedy

Just like in several other previous cases, the fraudsters launch fake 'live streams' on YouTube, asking users to send in their Bitcoins (BTC) in order to get redouble the initial amount.  An 'entry ticket' into to this scam starts at 0.1 BTC which is more than $650. With previous scams, it was much cheaper.

Fake YouTube Bitcoin (BTC) airdrop
Image via YouTube

The scammers also publish the URLs of this campaign, which are linked to suspicious websites. Unlike previous cases, fraudsters launch multiple live streams simultaneously. At press time of this article, at least two of them were active.

Multiple scam streams on YouTube
Image by YouTube

According to statistics, the average popularity of one live stream is about 30,000 viewers.

Very Bad Idea

Alongside that, launching fake airdrops on behalf of Microsoft's Bill Gates isn't a slam dunk for the fraudsters. It may seem ironic, but Mr. Gates is a prominent critic of cryptocurrencies, particularly of Bitcoin (BTC). He is sure that digital assets represent a kind of a ‘greater fool theory’ type of investment.

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Cryptocurrencies kill, added Mr. Gates. To him, its only use-case besides short-term speculations is illegal funding for drug trafficking:

Right now cryptocurrencies are used for buying fentanyl and other drugs, so it is a rare technology that has caused deaths in a fairly direct way.

The U.Today team will one more time state that no airdrop will be conducted without the notification from an official website of a product or token. Any YouTube, Medium, and/or Telegram announcements may shill scammers. Never send your money to unknown persons.

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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