The decentralized financing platform Gnosis is now the third largest holder of the Ether (ETH) coin supply. Gnosis’ multi-signature storage vault received a deposit of 1,500,000 ETH on January 14 – worth more than $ 1.7 billion at the time of the transaction.
Although its foray into the storage industry began a little over a month ago, a vast majority of ETH appeared in the Gnosis vault in the past 24 hours. Until a few days earlier, the address contained only 250,001 ETH. But a transaction of 600,000 ETH ($ 677 million) on Jan. 13, followed by Thursday, sent Gnosis from 32nd to third among Ethereum’s top custodians.
These two deposits increased the number of ETH Gnosis’ safe to more than 2.5 million, representing a total dollar value of more than $ 2.9 billion. That put Gnosis on the air rich list, making it the third largest holder of the ETH coin supply behind only Binance and Ethereum itself.
While 16.7% of ETH coin supply is held by just 10 addresses, they are all storage addresses used by cryptocurrency exchanges or function as smart contracts on the Ethereum blockchain.
The closest accumulation of ETH is currently found in the Wrapped Ether (WETH) contract, which contains 5,222,572 ETH, or 4.57% of the total supply, worth $ 6.2 billion. Wrapped Ether facilitates the transfer of ETH to an ERC-20 compliant token for use in Dapps and DeFi applications.
The second largest holder of ETH is Binance. The 2,897,785 ETH ($ 3.4 billion) held by the exchange represents the sum of all customer deposits stored in that particular wallet.
Gnosis announced its entry into the cryptocurrency scene in 2017 when it closed an initial $ 12 million coin offering only 10 minutes – a world record at the time. Presented initially as a blockchain-based prediction market, the project has since expanded into different angles of decentralized finance.
While no one owns any of the rich-listed addresses above, many cryptocurrency enthusiasts stick to the motto of “not your keys, not your coins”. Such people would say that cryptocurrency exchange customers who give up their private keys are essentially relinquishing control of their money.
The line between crypto owner and crypto custodian isn’t always clear, but most major cryptocurrency exchanges now claim to have security measures, such as multi-signature wallets, that require the presence of multiple private keys before coins can be moved.