MUST READ: Blockchain Data shows Most Projects Hoarding 70–90% of Their Own AltCoin’s Supply.
I’ve been doing extensive research on various blockchain projects in order to determine their potential in the future. My research has concluded that we’re in midst of a massive purge that will wipe out many of these newly formed scams, that lack any real value.
Many of these new alt coins are using the same 2017 ICO bubble tactics to gain quick hype, and then dump on investors. I’m writing this article to help others so they don’t fall for the same trap that so many did, 3 years ago.
Below are a list of several alt coins that are scams. In which, top whales (founders, devs, insiders) have purposely held large amounts of the supply in order to sell once the price has skyrocketed from false partnerships, hype, and FOMO from greedy investors.
All of the information I share is true, and you can check for yourself on this crypto data website: https://cryptorank.io/
ChainLink — 70% of Supply held by 9 Whales
The top 100 holders collectively own 83.66% tokens of ChainLink.
Trust me when I tell you, you don’t want to be holding ChainLink when those whales sell and it dumps 99%.
Band Protocol — 90% of Supply held by 5 Whales
xDai Chain - 90% of Supply held by 3 Whales
Orchid-60% of Supply held by 8 Whales
Leverj - 81% of Supply held by 8 Whales
Aave - 71% of Supply held by 8 Whales
I’ve only listed several coins although my research shows there are thousands affected by this issue. You can check for yourself on most coins through that website (https://cryptorank.io/)
Why is this an issue?
This is a big issue for Investors because the people at the top are in full control of the price. When I presented the ChainLink concentration on Twitter, I wasn’t met with too much resistance from the Link community (because they know its true)
If those whales ever decide to finally cash out, they can dump the coin into oblivion.
Make sure you’re investing into projects that don’t have their coins total supply concentrated by a select few at the top.
This is a terrible investment choice, and a great way to lose money.