Report: Be Careful What Cryptos You Invest in (2025)
Chain City
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Why Centralization Matters
When a cryptocurrency’s supply or governance is concentrated in the hands of a few, it creates systemic risks: Price manipulation (whales can pump/dump at will) Liquidity shocks if a major holder exits Governance capture (decisions made by a few, not the community) Regulatory or reputational fallout if linked to powerful individuals or illicit use
Cryptos With High Centralization Risks
1. $TRUMP (Donald Trump’s meme coin) Launched January 2025, Solana blockchain. 80% of supply held by Trump-owned entities (out of 1B total). Only ~200M in public circulation; valuation exceeded $27B, making Trump’s entities worth over $20B on-paper. Extreme political and individual concentration risk. #TRUMP #WhaleControl
2. $WLFI (World Liberty Financial) Trump business owns 60% of company and collects 75% of token revenue. Functionally a centralized corporate asset masquerading as a crypto. #WLFI #Centralized
3. Bitcoin (BTC) Marketed as decentralized, but ~4.5% of wallets hold 85% of supply. Mining dominated by a handful of pools, raising 51% attack concerns. Still the largest crypto, but decentralization is weaker than public perception. #Bitcoin #WhaleWallets $BTC
4. Ripple (XRP) Ripple Labs controls a massive share of XRP. Centralized treasury management has been a sticking point for years. Ongoing regulatory scrutiny. #Ripple #CorporateControl $XRP
5. Tron (TRX) Delegated Proof-of-Stake (DPoS) with 27 Super Representatives, but real power lies in token holders. At launch: 84% of supply allocated to Tron Foundation, team, and early investors. Only 15% went to the public. Community analysis shows exchanges like Binance may control >50% of TRX. Tron’s takeover of Steem blockchain governance proved how its model can be hijacked. Legal baggage: SEC scrutiny, and UN reports linking Tron to being a “preferred network for crypto money launderers” in Asia. #Tron #ExchangeControl #LegalRisk
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