Connect with us

Blogs

Tron’s behemoths. Market’s 88% is in the hands of only 100 TRX owners

Published

on

Tron TRX 100 owners

A Reddit user who goes by the name “yannickmama” claimed some four months ago that Mr. Justin Sun (Tron’s founder and CEO) had scammed the Tron community by cashing out six billion dollars in TRX and running away.

The rumor soon reached many other online forums. It had Tron traders seriously trying to figure out what that would do to TRX‘s price. Ever aware of what’s going on on social media, Mr. Sun quickly addressed this situation in a series of tweets:

Mr. Sun was able to put the fire down and prevent a confidence crisis. Today, however, it seems that Tron enthusiasts have a new issue to worry about. Eighty-eight percent of the TRX currency is controlled by the top hundred wallets.

Tron and Moby Dick

They call them “whales.” Whales are those Tron investors who hold massive amounts of cryptocurrency, and they cause a bit of anxiety because they can create an artificial market fluctuation just by ordering a big buy or a big sell.

If there’s one thing everybody should know about financial markets is this: they’re not rational. Not at all. We would never experience global economic crises if they were. Financial markets are all about fear and greed, which is why they get us all into trouble every now and then (whether we participate directly in them or not).

A sale order triggered by only one of the whales, and even if it’s just a fraction of their holdings, could be huge for a typical day in the market. This would create panic among traders and would drive the coin’s price down. By the same token (no pun intended) a large buy order can increase the price artificially but it would make smaller investors confident, so overall demand would increase.

The thing is that most cryptocurrencies have been trading in the green lately, which means they’ve been gathering value. And the only way you make a profit from the current rising trend is to cash your digital assets out.

The better the market trend is, the more tempting this becomes. Especially for whales. That would leave the smaller investors in the cold. Keep in mind that Tron started valued at fractions of a cent and it’s now at $0.072, and that happened since last September only, it’s been a rapid rise.

The Bitcoin analogy

Yes, Bitcoin is still THE cryptocurrency so let’s see what this situation is in its case.

For Bitcoin, forty percent of the currency is held by a thousand wallets. This has been enough to worry some cryptocurrency investors. After all, the mythical Satoshi Nakamoto (the blockchain’s creator, Bitcoin founder, and anonymous code writer whose real identity remains unknown to this day) was very vocal in explaining that the whole point in Bitcoin was to get rid of the banking system and credit card companies precisely because they are controlled by a minimal set of very affluent individuals.

In other words, these trends in Tron and Bitcoin are defeating the original cryptocurrency purpose by reproducing the same environment as in the financial system in which a few can dictate terms to everybody else. The Bitcoin distribution of wealth is bad enough, but Tron’s is probably so much worse.

This is the wallet in which Tron keeps the TRX tokens that are not in circulation. It currently holds 34.2 billion tokens, which is something like 34% of the entire supply.

Etherscan’s public data is enough to see that, indeed, only a hundred wallets hold eighty-eight percent of Tronix (TRX).

So far nothing fishy has happened, but just imagine that a group of these whales comes together and agree to use their vast assets in order to manipulate the Tronix price for their own gain. This is possible as many whales are known to be friends, or at least to know each other.

That wouldn’t be fair play, of course, and this kind of behavior is penalized in traditional markets. But cryptocurrencies and their markets are still unregulated, so this kind of scheme would not only be possible but, believe it or not, legal (not criminal at the very least). And it would be hell for Tron’s smaller investors (which in this case means all the rest)

Tron and wealth concentration: What’s the future?

Cryptocurrencies, their exchange, their value and their popularity have grown exponentially recently, and regulators have just not kept up. They are only starting to notice it now.

Is price manipulation the same as fraud? Well, it’s still a grey area. Most laws and investors consider price manipulation to be foul play, but it is not inevitably a criminal activity, according to laws. Bittrex has worked hard to prevent this kind of situation. Also, every token has a different structure, some of them could be eventually classified as a security (Ripple is facing that problem right now) so different tokens will have to be regulated in different ways, most probably.

Cryptocurrency hedge fund managers tend to closely follow any activity by the whales in order to gain insight into the market. This information can indeed be handy, but only when it’s interpreted correctly. And that correct interpretation is tough to come by when you don’t have direct access to the inner circle, so it all remains guesswork.

How can we fix it?

Confidence in Tron’s future performance could make the whales keep their TRX. But continued good performance will also increase their temptation to cash out as selling is the only way to rip the financial benefits.

However, if TRX really becomes a currency that can be used in the real-world, then the whales would be better off spending their tokens in the real-world rather than selling them in exchanges. This would considerably lessen the risk for the smaller investors.

The fact remains that, even with this situation looming on the horizon, there are still plenty of reasons to be optimistic about Tron. The Main Net launch is just seven days away, and the rumor has been circulating about an imminent Coinbase listing.

But the question remains, how can we fix it? Sadly, the answer is that we can’t, but maybe Justin Sun can. Will he? At this point, only he has those answers.

For the latest cryptocurrency news, join our Telegram!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pxhere.com

Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

Published

on

Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

Continue Reading

Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

Published

on

2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

Continue Reading

Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

Published

on

Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

Continue Reading

Press Release