I will be traveling tomorrow and won't be sending the newsletter. We will resume Wednesday.
Just 10 Addresses Hold Nearly 50% of All EOS Tokens
What's the Story?
- 10 Addresses Control ~50% of EOS tokens
- Block.one controls $1.5B worth of EOS
- The top 100 addresses control ~75% of EOS tokens
Why Does This Matter?
The irony about cryptocurrencies is most of them are held by a small group of individuals/entities. Does that mean they are decentralized? How can a token be decentralized if a small number of people holds the majority of the tokens? Even more so, those holders can make decisions that influence the network. If somebody controls 51% of tokens, those holders can vote on proposals that affect the network and help themselves. If there was a proposal for staking a coin, for example, these holders could make it that only people with a lot of X token would be able to stake. Essentially, making the rich richer and creating a gap between smallholders and large holders. Tokens seem to be looking more and more like traditional equity markets. Facebook's voting rights are majority controlled by a few people. Equity markets combat those issues with activism from shareholders. I expect token activism to become a new thing where smallholders voice their opinion and try to influence the market. If a token doesn't respect their holders, the token holders voice will be heard.