CoinMetrics and the anomalies on Paxos
CoinMetrics and the anomalies on Paxos
Stable Coin

CoinMetrics and the anomalies on Paxos

By Alfredo de Candia - 10 Jun 2020

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CoinMetrics, a company that analyzes crypto market data, has published a report that focuses on stablecoins and blockchain activity including an unusual instance related to Paxos.

The report examines several blockchains including Bitcoin, Ethereum, TRON, and different types of stablecoins such as Tether, Paxos, USDC, TrueUSD, Gemini, HUSD, BUSD and USDK.

Among these, a first figure that emerges is the increasing success of Tether (USDT) which has a greater volume prevalence on the Ethereum blockchain, while in second and third place we find USDC and TUSD.

The anomalies on Paxos

Some of the inconsistencies start in the part of the report where CoinMetrics analyzes the distribution of the activity of the different stablecoins and addresses that are involved on-chain.

coinmetrics paxos

And it is precisely on PAX, the stablecoin of Paxos, that there has been a recent unusual increase of users all pointing in the same direction, that is to MMM BSC which, from what can be read, is essentially a Ponzi scheme.

Even though obviously the Paxos company has nothing to do with it, the PAX stablecoin seems to have been chosen for this system and this can be seen also from CoinMetrics data, as more than 40% of all transfers made with PAX are directed to the address of this MMM BSC.

It should also be noted that, since the beginning of the year, transfers have increased significantly, reaching peaks of over 15 thousand transactions, so it can be deduced that a large number of people are involved in this pyramid system.

Tether on TRON

Other data that can be derived from the CoinMetrics report are Tether’s transfers to the TRON (TRX) blockchain and how these are related to dividends, responsible for more than 90% of the total transfers made in recent months on this blockchain.

As for the value of the transferred stablecoin, the average is $100, higher than PayPal’s average transfer of around $58.

Once again the winner is Tether on the TRON blockchain, followed by PAX, most likely due to the Ponzi scheme that requires $100 to start, and the third position is occupied by USDC.

Finally, in terms of significant transfers, those over $100,000, the most used is HUSD, 35%, followed by BUSD with just under 20% and in third place by GUSD which, however, does not reach 5%.

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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