Top Stablecoins Compared Side by Side
Almost half of all PAX stablecoins are involved in fraudulent schemes
Coin Metric resource presented data on the activity of using stablecoins in various networks
About 40% of all PAX coins are pegged to pyramid schemes
Stablecoins from the same issuer can be used differently on different networks
According to Coin Metrics research, stablecoins are actively used in illegal activities – and this is not about Tether.
Crypto analytics firm Coin Metric has published the results of a recent study that found stablecoins are popular with criminal offenders. So, PAX coins were actively involved in financial pyramids.
Tether is not so scary …
Recently, a recognized leader among stablecoins, Tether, has been in the focus of close attention, which has been pouring tens of millions of new coins into the market since spring, which has caused a lot of discussions, fears and criticism..
Against the background of Tether’s indomitable emissions, the rest of the stablecoins seemed almost a stagnant swamp in which nothing was happening. However, according to experts from the analytical company Coin Metrics, Paxos (PAX) may well give a head start to Tether itself. Their latest research suggests that Paxos may – presumably – be actively involved in fraudulent schemes such as pyramid schemes..
“At first glance, it might seem that Paxos has a large active user base. However, an analysis of the two most active Paxos accounts reveals that they are tied to MMM BSC, a pyramid scheme that has shown explosive exponential growth over the past year, ”analysts say..
The MMM BSC project is supposedly an offshoot of the famous MMM-Global financial pyramid, launched in 2011 by the notorious entrepreneur Sergei Mavrodi. At the end of May, the number of transactions with PAX related to MMM peaked, close to 16 thousand.
However, this problem is not unique to PAX. So, according to the report, about 80% of all USDT issued on the Tron blockchain are also tied to “dividend” payments associated with financial pyramids. On some days, the share of such transfers from Tether to Tron exceeded 90%.
Coin Metrics does not specify who is buying PAX as part of illegal activities, but notes that approximately 50% of all PAX holders own about 80% of the total supply of this coin. This trend is ubiquitous in the stablecoin segment, experts add. According to them, “6 or fewer accounts own 80 +% of all stocks of Gemini Dollar, Binance USD, Tether [issued on the Tron network], USDK and HUSD”.
In the course of the study, other features were identified. Thus, USDK is owned by 3,355 accounts, but at the same time, 3,170 (94%) wallets hold only $ 0.5 or $ 1, which were transferred to these accounts in July 2019 from one address, which, in turn, received money from OKex.
It is noteworthy that at the same time, Tether coins issued on the Ethereum blockchain are characterized by a more active distribution – about 80% of such USDT are divided between 1,600 addresses. The second in this list are the TUSD and USDC coins – 80% of their volume is distributed between 200 accounts. Tether coins issued on the bitcoin network are also distributed among 200 wallets.
In this regard, Coin Metrics experts came to the conclusion that stablecoins of the same issuer can be used in different ways in different networks. However, they rated the ERC-20 version of Tether as the most decentralized. We have previously talked about the optimistic prospects of the Ethereum blockchain..
Do you agree that the purpose and use of stablecoins can largely depend on the blockchain on which they were issued? Share your opinion in the comments and join discussions in our Telegram channel!
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