18% of all Tezos (XTZ) are on 5 platforms. And that’s a problem – Cryptocurrencies

How far will Tezos (XTZ) go? It is already on the corners of 10,000 streets in France. It even outperformed Bitcoin (BTC). However, there is a threat looming: Its governance is today endangered by Whales which sail in the Tezos Ocean and which could scare small fish.

5 governors for Tezos

Tezos is currently experiencing an unprecedented rebound: after having suffered a spectacular fall in March 2020, its price has increased by around 113% and is now around 2.75 USD.

Interest in this competitorEthereum ((ETH) largely lies in the possibility of staking it – Ethereum 2.0 still swimming in difficulties for the moment : staking represented 80% of the activities on the network, in May 2020.

18% of XTZ in circulation are distributed between 5 exchanges: Coinbase control 11.2% of total supply after the acquisition of 8 million XTZ.

Exchanges, at the top of

This concentration of power in the hands of a few giants, is beginning to worry observers who are worried about the impact this could have on the governance of the network XTZ.

The founder of Blockwatch Data, Alexander Eichhorn, claimed that among the holders of Tezos, 77% rarely changed validators, while 14% made regular permutations.

Small fish in the mouths of Whales

Many investors have joined the ecosystem of Tezos : the latest data indicates that almost 35,000 accounts were created just in April 2020.

These small investors, however, do not have a significant weight compared to those who have more financial means, these Whales which would hold 63% of the total supply.

Anyway, the future of Tezos looks promising, despite the crypto sector debacle following its ICO in 2017: the largest private bank in the Brazil, Banco BTF, is expected to soon launch $ 5 million real estate tokens on Tezos.

Banco BTF had already launched a similar launch on Ethereum, valued at $ 10 million.

Pending the arrival of Ethereum 2.0, Tezos is taking advantage of its staking offer to attract even more investors. When will a blockchain network ban whales? Small sardines also need an environment where they can grow up safely.


Related Articles

Back to top button