Cornering and manipulation are a big worry for Crypto-currencies so how many players have large holdings

One of the biggest concerns for crypto-currencies is that there may be some large holders that can manipulate or corner the market. Bloomberg is out with an article shedding some light on the matter.

  • About 40% of BTC is held by around 1000 people
  • The top 100 people hold about 17% of BTC
  • The top 100 in Ether hold around 40% of the market
  • Many of the large players have known each other for years and are probably in constant contact
  • They may be coordinating trades and information
  • There’s no insider information rules because crypto’s aren’t subject to securitisation rules
  • Some exchanges have warned digital users that they may be banned is they form groups with the intention to manipulate prices

The article is quite in depth and has plenty of quotes from analysts within the crypto world, so it’s well worth a read. What it does do is further emphasise my view that until crypto’s see some form of regulation, they remain a dangerous investment vehicle.

So far today there’s only been a 3000 3200 3300 3500 pip range in Bitcoin, and we’re now down some 5500 ticks since the 19k+highs yesterday.

Bitcoin daily 8 December 2017

Bitcoin daily

Just your average 25% swing then. I hope all the folks trading it are having fun 😉

Ryan Littlestone

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