Earlier this week, Coin Metrics released data showing that exactly 318 addresses hold at least $1 million in Tether.
This means that those 318 Tether whales hold roughly 80% of the entire global Tether supply. Nic Carter, co-founder of Coin Metrics also mentioned that much like other crypto whales, a great deal of the Tether whale accounts, belong to major crypto exchanges like Bitfinex and Binance.
The report further dives in the difference between traditional crypto whales and Tether whales. Bitcoin whales for instance, hold roughly 20% of the entire token supply. Additionally, many accounts may not have above 1000 BTC to be considered whale wallets, but they do hold at least $1 million in equivalent assets.
Tether whales have a large influence on the crypto market
Despite bitcoin being more or less evenly distributed between whales and users alike, Tether whales are still able to influence the bitcoin price on their own.
John Griffin, a finance professor in the University of Texas states:
“When you look at the concentration of Tether, you can see that the majority of the token is in the hands of a few big players. These players do have the ability to swing Bitcoin prices and they also have a vested interest in doing just that. The players also have an interest to keep the entire Tether ball rolling.”
Griffin does not hold USDT in high regard. The finance professor says he managed to link Tether with countless cases of market manipulation. He is also concerned by the fact that market volatility seems to be influenced heavily every time a large amount of Tether is injected into the market.
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