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Businesses The Almighty Buck

Just 376 People Found to Own a Third of All Ether Cryptocurrency (bloomberg.com) 62

Just 376 people hold a third of all Ether, the cryptocurrency that powers the Ethereum blockchain, according to new research by Chainalysis. From a report: Large holders are known in the crypto market as "whales," which Chainalysis defines as individuals who hold their assets in digital wallets and not on an exchange, Kim Grauer, a senior economist at the company, said in an interview. By comparison, 448 people own 20 percent of all Bitcoin, she said. Chainalysis also looked at the effect Ether whales have on price, and found that large holders don't move their cryptocurrency often. "The majority of whales aren't traders," she said. "They're mostly holding."
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Just 376 People Found to Own a Third of All Ether Cryptocurrency

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  • by Shaitan ( 22585 ) on Thursday May 16, 2019 @04:24PM (#58604720)

    The whales are whales because they are early wallets with lost keys.

    • Nay, old chum... they're time travelers. We just haven't yet caught up to their timeline, that's all.
  • by tomhath ( 637240 ) on Thursday May 16, 2019 @04:25PM (#58604726)
    376 accounts own a third. But of those, how many are unique, and how many of those have other accounts that they trade frequently? I doubt the count they came up with is accurate.
    • by CaptainDork ( 3678879 ) on Thursday May 16, 2019 @04:34PM (#58604776)

      You insensitive clod.

      The count was verified by blockchain.

    • by Shaitan ( 22585 )

      Probably all of them since the most likely reason for these massive accounts (and especially the whales on Bitcoin) is that they are no longer accessible.

    • Also, how many are exchange wallets where the coins are owned by thousands of people?

  • by DNS-and-BIND ( 461968 ) on Thursday May 16, 2019 @04:27PM (#58604738) Homepage
    Either they forgot the password, misplaced the backup disk, or whatever. Yeah, they're holding all right - going to hold a long, long time.
  • I'm not surprised their not moving their coin that often.
  • by Sebby ( 238625 ) on Thursday May 16, 2019 @04:36PM (#58604788)

    In the non-tech world, most of the money is owned by the rich 1%.

    In the crypto-currency world, that 1% is all the geeks.

    Same problem, different tech.

    • by Zocalo ( 252965 )
      So Monty Python almost had it right with "Greek", but it was actually "the geeks shall inherit the Ether"?
    • by Shaitan ( 22585 )

      Not a problem, geek denotes intelligence which seems like the best system for distributing wealth. The problem in the fiat world is that it is concentrated mostly among a handful of geeks who came from rich sociopathic families.

  • by Anonymous Coward

    It's almost like economic systems naturally tend toward the hoarding of resources by a powerful few unless regulated in such a way as to prevent that outcome.

  • I only have a tiny amount of bitcoin, but I keep it in my own wallet because I don't trust the exchanges over the long term - initially, because they were unknowns, and since then, because too many of them have proven to be unreliable/insecure. I only use an exchange for the short period I need to do the occasional trade.

  • I see this kind of thing all the time.... someone observes a minority or insignificant number of users of some resource that are actually responsible for a significant amount or sometimes even a majority of that resource's consumption, and every time, it seems like everybody around is completely amazed by this.
    • Because the value proposition of blockchainism is "decentralization." The only thing blockchain is supposed to accomplish that a traditional centralized equivalent does not, is ensure that the agency of a great majority of its userbase is not beholden to the whims (or fortunes) of a tiny minority of that same userbase.

      Blockchain "tech" (regardless of the flavor) has not only failed to deliver on its core promise of decentralizing control, custody, cost and responsibility over the technical aspects of a va

      • as long as it's private individuals defrauding you, and not The State, you shouldn't have a problem with it unless you're an irrational commie.

      • by guruevi ( 827432 )

        Welcome to reality. Perhaps you should do some research on the Pareto principle, it applies, even in Communist countries like the USSR, Venezuela, Cuba and China, it applies in nature, it applies everywhere just like the number e shows up in random distributions and pi shows up in set theory.

  • Premined (Score:4, Informative)

    by fred911 ( 83970 ) on Thursday May 16, 2019 @07:59PM (#58605550) Journal

    Ether premined 72 million. 12 million were allocated to developers, 60 million for ICOs.

    It appears the premined allocation isn't being traded yet. I'd imagine the 20% quoted in the article was allocated.

    https://www.cryptoglobe.com/la... [cryptoglobe.com]

  • . . . . that 85 people own at least half of the world's wealth, that's really a large number.

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