Glassnode Research: There Is A Huge Inequality Between ERC20 Ethereum Wallet Amounts


Many crypto projects are created with the goal of making the world economy more egalitarian. However, it seems that some aspects of reality are getting in the way of that. In fact, the distribution of tokens among ERC20 wallets is really unequal.

A recent piece of research made by Glassnode has found out about this inequality. Despite how tokens are distributed in airdrops and some similar promotional campaigns, there are several whales in the system.

For instance, it was discovered that the richest 1% wallets have around had over half of the tokens in some cases. This means that a large number of assets were very concentrated.

By using the Gini coefficient, the researchers noted that the crypto economy was considerably unequal as the Gini index reached 0.97. One of the main reasons why inequality was so big is that these are very small communities. The developers and foundations behind the tokens keep a lot of the tokens themselves.

The researchers warned that communities in which all the money is concentrated in a few investors are a huge red flag, as they have a lot of power over prices and demand.

According to the reports, the researchers only looked at 73 tokens from thousands of altcoins in the market right now. However, the research was very demonstrative of the patterns which are often repeated.

All of the researched assets were based on the Ethereum blockchain. Bitcoin, however, also has its share of inequality. According to the team, there are several whales in the BTC market, which may be the largest one, but it is also the market with more whales.

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