In any financial market, excessive concentration can lead to manipulation risks. In traditional stock markets, if a small number of shareholders control a large portion of the circulating shares, it becomes easy to influence stock price trends. In the cryptocurrency market, this risk is even more pronounced, as token issuance mechanisms often lack strict constraints.
The bubble chart tool provided by Bubblemaps is precisely an instrument to help investors identify this risk. Through it, we can intuitively see whether tokens are concentrated in a few large addresses. If the top ten wallets hold more than half of the total supply, then such projects often lack true decentralization and can easily be manipulated by a few individuals.
Worse yet, these large holders may sell off at the peak of market enthusiasm, causing ordinary users to suffer significant losses.
The significance of this transparency is that it allows investors to identify risks in advance, enabling them to make more rational decisions. Bubblemaps does not predict market prices, but it helps us understand the underlying structure. And this understanding is precisely an important means of reducing uncertainty.
