A report published by Cryptosoft has found extreme centralization of wealth among many of the top stablecoins; at least 80% of the total capitalization of the top five stablecoins is in less than six accounts.
CoinMetrics found that the majority of at least 20% of transfers made using most stablecoins are valued at less than USD 100, showing significant adoption of stable tokens as a means of payment.
The report also found that more than 40% of transactions made using the Paxos Standard Token (PAX) are directly linked to a single multi-level marketing Ponzi scheme, or MLM.
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The Stablecoins show an extreme centralization of wealth
The report found that many stablecoins show extreme centralization of wealth; fewer than six accounts in the Gemini Dollar (GUSD), Binance USD (BUSD), Huobi Dollar (HUSD), Tether (USDT) and USDK networks represent more than 80% of the respective capitalization of each token.
The USDT issued in Ethereum constituted the most pluralistic market of stablecoins by far, as almost 1,600 accounts represented 80% of the wealth. It was followed by USD Coin (USDC) and TrueUSD (TUSD) with almost 200 accounts each, followed by Omni-based USDT with over 150
Stablecoin wealth distribution
In terms of the total number of transfers with stable tokens, the USDC is the second most distributed; over 20% of the purses drive 80% of transfers, followed by the USDT and the Omni-based GUSD at almost 20%, and the TUSD at almost 15%.
Stablecoin activity distribution
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At first glance, the findings seemed to show significant pluralism in the Paxos network, with almost 50% of the purses representing 80% of the total token capitalization.
However, a closer inspection shows that the two most active Paxos accounts are directly linked to the BSC Ponzi WMM. The scheme has seen an exponential growth in user activity over the past year; it now represents almost 40% of all Paxos network activity.
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Percentage of PAX transactions associated with MMM BSC Ponzi
CoinMetrics also found that the most active Tron-based USDT accounts were associated with „dividend“ payments, which accounted for over 90% of network activity on certain days.