by We all agree and are aware of the despicable story of Sam Bankman Fried, the once virtual digital asset co-founder of the collapsed FTX, who is currently under house arrest in one of his folks’ most comfortable California houses.
Meanwhile, the tale may appear old news; however, the drastic downfall continues to drag down victims for crypto traders, customers, and investors. The current one is Genesis, the virtual digital asset lender that has filed for bankruptcy, speculated to owe a large sum of 3.5 billion dollars to its top fifty creditors.
The first impact of the downfall and collapse of FTX was the fall in small accounts holding less than one thousand dollars. These accounts are known as ”shrimp,” which is small fish.
The Fall of BTC Accounts Reserving Less Than 1,000 Dollars
An accumulated total of 38.7 million accounts reserved between one dollar and one thousand dollars of virtual digital assets as FTX collapsed, depreciating to 38.1 million post-FTX. Not the biggest step in the world; however, when the initial coin also fell 20% in value, there were probably accounts with more than one thousand dollars that fell into this bucket under BTC being valued less in United States dollars.
However, it does capture that small fry were trading post FTX downfall, with rewards only coming back last month. Additionally, it is important to note that wallets holding less than one thousand dollars of the initial coin only accumulated 2.84% of the total distribution.
The Rise of BTC Wallets Holding 1,000 to 10,000 dollars
Surprisingly, the sequence was almost similar, with the number of accounts holding one million dollars or more of BTC. Interestingly, the larger whales and the small fish appeared to be in synchronization.
The opposite behavior when observing accounts reserving between one thousand to ten thousand dollars of BTC; there was a shift right after the collapse of the major digital asset exchange FTX, which decreased last month as the market revived.
BTC’s value has increased drastically following these events, indicating that many recently classified wallets might have just been bumped up to the next class.
However, it is the outlier, as every other currency indicates the opposite impact. Almost 5% of the BTC distribution is held within accounts holding between one thousand and ten thousand BTC.
BTC Distribution Remains Intact
The number of BTC’s distribution held in small accounts is significantly small. The distribution could be faster because BTC has a significantly top-heavy distribution. Less than 7% of the distribution is held within accounts that reserve less than ten thousand dollars of BTC.
However, more than half of the whole supply, less than 52%, is reserved within accounts reserving more than ten million dollars of BTC. Expanding to focus on all accounts reserving more than one million dollars of BTC, this number increases to 70% of the total distribution.
Meanwhile, whale accounts dominate due to BTC being so cheap in its initial days before drastically skyrocketing on such a remarkable upward price growth.
Investing five or one thousand dollars into BTC only seven to eight days ago would have rewarded you with a jaw-dropping profit, and this is the reason we witness the existence of these large whale accounts. The information indicates that the initial coin is decentralized, and the distribution is not.
