CoinMetrics offers a weekly report called “State of the Network” which analyzes crypto networks for trends. In the latest report, CoinMetrics looks at stablecoins, their distribution and how they are used.
PAX highly involved in MMM ponzi
Since their emergence in 2014, stablecoins have grown steadily over the years. Since then, they have been in the crosshairs of regulators around the world, who fear that stablecoins will be used for illicit purposes. Whether it be the Financial Stability Board or the European Central Bank, all are pushing for proactive ecosystem regulation.
Unfortunately, it would seem that these fears are justified. Especially when you take a closer look at the use that is made of certain stablecoins.
According to the report published by CoinMetrics, the stablecoin issued by the company Paxos (PAX) is closely linked to the MMM ponzi.
Thus, during the month of May, almost half of the PAX transactions are linked to the Ponzi MMM.
Source : CoinMetrics
Obviously, PAX is not the only one. The Tron version of stablecoin Tether is also highly linked to illicit use. Indeed, between December 2019 and May 2020 a more than questionable “dividend distribution system” was responsible for more than 90% of the volume.
Lack of distribution
In its report, CoinMetrics also looked at the distribution of these tokens across the network.
Often singled out as the ugly duckling in crypto, Tether remains the best-distributed stablecoin. With a total capitalization approaching $ 10 billion, it is the most used stablecoin in the ecosystem.
Thus, on Ethereum 80% of tethers (USDT) are held by 1600 addresses. A distribution far from being as equal among its competitors. For the USD Coin (USDC), only 200 addresses hold 80% of the supply, a figure that continues to plummet as it ranks.
Source : CoinMetrics
That they are issued by the same entity does not seem to have any impact on the use of the same stablecoin on different networks. While the USDT appears to be used normally on Ethereum, the latter is not used on Tron. It is therefore advisable to choose the platform and the stablecoin to use accordingly.
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