Pseudonymous cryptocurrency trader ‘Crash’ shed light on the concentration of wealth among the top holders of popular meme coins like Bonk BONK/USD, Dogecoin DOGE/USD, and Floki FLOKI/USD.
What Happened: Crash's latest tweet reveals that the top 100 holders of these tokens own a significant portion of the total supply, with BONK at 66.73%, DOGE at 65.46%, and FLOKI at a staggering 88.21%.
The trader argues that this concentration of wealth is a common characteristic of successful cryptocurrencies, and yet many investors are “fooled into thinking that’s bad.”
The trader suggests that those who constantly seek fair distributions in the crypto market are less likely to make money, stating, “U don’t see Amazon, Tesla, or any properly executed business FAIRLY DISTRIBUTED.”
The tweet challenges the notion of fairness in the crypto space, with ‘Crash’ reminding followers that they were taught from a young age that life isn’t always fair. “Stop whining about fairness,” the trader urges, encouraging investors to instead focus on playing the game and making a profit.
Also Read: Is The ‘Memecoin Supercycle’ Over? Mad Crypto Alpha With Ivan
Why It Matters: This perspective on wealth concentration in successful cryptocurrencies may be controversial, as many in the crypto community value decentralization and equal opportunity. The data presented in the tweet highlights the significant influence that top holders can have on the market dynamics of meme coins that continue to gain popularity among retail investors.
According to Bitinfocharts data, the top 100 richest Dogecoin addresses hold 94.5 billion DOGE, while the top 10 addresses alone control 45.80% of the total supply. The number of active addresses in the past 24 hours stands at 45,278.
IntoTheBlock data reveals that 84% of Floki holders are currently in profit, while the concentration of large holders is at 86%. The number of transactions greater than 100,000 increased from two on April 28 to eight on April 29, and the large transaction volume expanded by 500% to reach 2.31 million.
When comparing the performance of these meme coins over the past three and twelve months, Bonk emerges as the winner in its 12-month performance, while Floki takes the lead in three-month gains. Dogecoin, the leader among meme coins, has seen its three-month and 12-month performance remain almost at the same level due to the significant drop it experienced between August 2023 and October 2023.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: Meme Coins Are ‘A Pure Ponzi’ And ‘Destroying Crypto,’ Says Trader Who Thinks Dogecoin Was Different
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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