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17% Of Ethereum Addresses Hold Majority Of NFTs

Ethereum NFTs have gained the most clout in the crypto space. These NFTs have recorded sales of up to 69.3% for a single piece of artwork. Investors are moving towards owning NFTs as a form of long-term investment in addition to their cryptocurrency holdings. Although other blockchains are coming up where NFTs can be minted, the majority of it still happens on Ethereum.

This is why investors have flocked towards non-fungible tokens minted on the blockchain. Its growing popularity has led to some striking similarities with the pattern of holding seen in cryptocurrencies. For example, the same way whales are a thing in cryptocurrencies, there are also NFT whales, and new data coming out of the market shows that whales are dominating NFTs the same way they dominate cryptocurrencies.

Related Reading | Five Hidden Gems in NFTs – Well, Not Hidden Anymore

Whales Take The Lead On NFTs

Moonstream published a report on Github analyzing the movement of non-fungible tokens over the past six months. This time period has been very significant in the growth of the NFT space and the report had some interesting findings.

It found that over 80% of all non-fungible tokens are held by only 17% of wallets. Leaving less than 20% of NFTs for the rest of the market. NFT platforms, exchanges, and most importantly, whales, have been grabbing up non-fungible tokens at an increased rate over the past six months, putting them at an advantage over the rest of the market. This is mirroring the cryptocurrency market which shows similar figures for volume held by whales and smaller investors.

Moonstream analyzed over 7 million NFTs transactions for the past six months on the Ethereum blockchain. This analysis led to the conclusion that the remaining 83.29% of the NFT market holds only a handful of it.

Creating Room For Nuance

The data presented in the report included NFT platforms where investors buy and sell their NFTs. It is important to note that since these platforms also offer storage services, NFTs being stored on the platforms are factored into this.

Small-time NFT investors could very well decide to leave their acquisitions on these platforms to enable them to sell easily, much like cryptocurrency investors leaving their assets on exchanges in order to move very quickly with the market.

Related Reading | CryptoDragons: A Unique NFT Project With Entertainment and Earning Elements

In the report, Moonstream explains that more nuance is needed in the interpretation of the data presented, “as many of those owners are marketplaces and clearinghouses lie OpenSea, Nifty Gateway, and other platforms of the same ilk.”

Nevertheless, just like in any market, there are always stark inequalities. A small percentage usually controls the largest market share and given the barriers to entry in the non-fungible token market, small-time investors will control an insignificant portion of the market.

Featured image from Forbes, chart from TradingView.com

South Korea Postpones Crypto Tax, Looking For Votes?

South Korean National Assembly Strategy and Finance Committee approved an amendment to delay to 2023 the taxation that imposes an annual 20% capital gains tax for crypto trading with over 2.5 million Won (US$2,125) in earnings, just after the same taxation had been rushed to happen in 2022 as the lawmakers said postponing it would::Listen

South Korean National Assembly Strategy and Finance Committee approved an amendment to delay to 2023 the taxation that imposes an annual 20% capital gains tax for crypto trading with over 2.5 million Won (US$2,125) in earnings, just after the same taxation had been rushed to happen in 2022 as the lawmakers said postponing it would lead to “loss of public trust”.
Some have claimed that lawmakers needed to postpone the crypto taxation because the bill still has many loopholes to work on, but on top of that the presidential election is around the corner and lawmakers from all parties have the intention to win over young voters, who have shown high rejection towards the crypto tax and even formally asked to delay it.
Statista shows that South Korea’s number of registered users of cryptocurrency exchanges by August 2021 was around 14.8 million. In 2018, the country had been ranked as the third-largest market for bitcoin trades in the world.
With rates of unemployment going up and a slowed-down economy, the South Korean interest in crypto has only increased. It had even been alleged that a South Korean drop on Bitcoin investments could have an impact on its price.

South Korea’s Lawmakers Can’t Decide On Crypto

Lawmakers have been going sideways about the crypto taxation coming into action. There had been a previous proposal for postponing it until 2023 that was deserted last September as the Deputy Prime Minister and Finance Minister Hong Nam-ki had said that the taxation had to take effect next year:

Any further delay in the already postponed enforcement will lead to the loss of public trust in government policy and undermine stability in the legal system,

Back then, a huge backlash from crypto investors was expressed through online protests and petitions that called for regulators to drop the bill. One of them gathered around 201,079 signatures in 25 days.

Protestors claimed that taxation was premature because crypto investors had no protective measures, and the proposition means that they would be taxed at higher rates than stock investors. As the tax plans to get imposed on virtual assets earnings over 2.5 million Won (US$2,125), taxing of Stock capital gains starts at 50 million won (US$42,016). Some experts asked for virtual asset gains to be recategorized as financial income.

Related Reading | South Korea Financial Regulator May Impose Tax On NFTs

Before the bill had even been announced, in 2018 the South Korean government had said the crypto movement in the country was “irrational” and started to threaten to ban all cryptocurrency and shut down exchanges.

In March 2020, South Korea passed an amendment that came into effect in March 2021,  the Act on the Reporting and Use of Specific Financial Transaction Information. It focuses on crypto exchanges, providers of custodian wallets, ICO projects, overall service providers involved in selling or buying crypto, crypto-to-crypto exchanges, transferring of crypto, storage, or management of virtual assets.

All of these service providers have to register with the Korean financial regulators before getting involved in any activity and reshape their know-your-customer and Anti-Money Laundering systems.

Related Reading | Dogecoin Rival Shiba Inu Becomes First Meme Coin To List In South Korea

 

Crypto
Crypto total market cap at $2.4 trillion in the daily chart | Source: TradingView.com

17% Of Ethereum Addresses Hold Majority Of NFTs

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