In this article, we’re looking into the latest happenings with Kaspa, including discussions about whether Marathon Digital Holdings, the largest Bitcoin mining company, is offloading Kaspa, and the emergence of a new ‘Aquaman’ among Kaspa’s top holders. Let’s unpack these developments and what they mean for the future of Kaspa.
Marathon Digital Holdings and Kaspa: What’s the Connection?
Marathon Digital Holdings, a prominent Bitcoin mining company, has been mining Kaspa, demonstrating their belief in the project’s potential. Kaspa mining isn’t just a strategic move; it’s also profitable, which is why Marathon has engaged in it.
According to a well-known figure in the Kaspa community, the speculation that Marathon holds 51% of Kaspa’s hash rate is likely an exaggeration. In reality, Marathon controls less than 10% of the total Kaspa hash rate and started mining when 75% of the Kaspa supply was already in circulation. The real measure of Marathon’s confidence in Kaspa lies in how much Kaspa they hold on their balance sheet. Even if this amount is around 10% of all the Kaspa they mine, the rest is used as a utility rather than held as an investment.
The Strategic Value of Mining Kaspa
For Marathon, mining Kaspa serves a dual purpose: it’s a way to contribute to the network’s security and also to enhance liquidity and trading volume. Large miners like Marathon selling a portion of their Kaspa holdings to purchase Bitcoin isn’t necessarily a bad thing. It boosts Kaspa’s liquidity, which is beneficial for the network and makes trading more attractive for exchanges. This activity is likely a contributing factor to Kaspa’s recent minor retracement in price. However, this pullback might also be influenced by fear, uncertainty, and doubt (FUD) or inexperienced investors switching to trending meme coins.
A Major Kaspa Holder Emerges
There’s been a buzz in the community about a new major holder, referred to as the “Aquaman” of Kaspa. This individual or entity now holds a significant amount of Kaspa, leading to speculation about their identity. It could be an exchange like Kraken or Binance, or even Marathon offloading some of their Kaspa to platforms like gate.io. After doing some research, it appears likely that this large holding belongs to a gate.io wallet, although this is still speculative.
Should We Be Concerned About Concentration of Holdings?
A question that naturally arises is whether having a major holder, like this new Aquaman, is a cause for concern. Currently, this entity holds about 4% of Kaspa’s total supply. While having a few large holders could theoretically impact price stability, the distributed nature of Kaspa ownership remains intact, with a significant portion still held by retail investors. When this large holder decides to sell, the market might see a 4% retracement, but this should be quickly corrected as other buyers step in. The presence of such a significant holder can actually be a positive sign, indicating strong belief in Kaspa’s future.
Kaspa’s Growing Community: Small Investors Are Key
One of the most bullish signals for Kaspa is the growing number of wallet addresses, with both small and large investors accumulating Kaspa. This trend mirrors the early days of Bitcoin, where a broad base of smaller investors laid the foundation for the cryptocurrency’s success. More wallets and more holders indicate increased interest and belief in Kaspa, which is a strong positive for its long-term potential.
Kaspa’s Market Position: Current Status and Future Outlook
At the time of writing, Kaspa is trading around the 16-cent mark, with a market cap close to $4 billion. Despite the fluctuations seen in recent weeks, Kaspa’s price has shown resilience. It’s clear that Kaspa is maintaining a steady position, with the community’s confidence remaining strong.
Concerns About Tangem Wallets
A common concern among Kaspa holders is the security of their investments, especially in the context of using Tangem wallets. A question raised by many in my Discord community is, “What happens if Tangem goes out of business? Will I still be able to access my crypto?” The answer is reassuring. Even if Tangem were to face difficulties, users would still be able to access their funds. The Tangem app and cards would continue to function, albeit with some reduced convenience. This assurance provides peace of mind to those using Tangem wallets to secure their Kaspa.
Secure Your Kaspa and Stay Informed
In the fast-paced world of crypto, staying informed and prepared is crucial. It’s important to keep your Kaspa safe and secure by using reliable wallets and avoiding unnecessary exposure to exchange risks. Being the master of your own crypto keys is essential.
For those who want to stay updated with the latest Kaspa news, I recommend following my updates on X (formerly Twitter). I regularly post Kaspa-related content to keep the community informed. As always, the advice is to accumulate Kaspa steadily, especially before major exchanges like Binance finalize their holdings.
Conclusion: The Road Ahead for Kaspa
Kaspa continues to present an exciting opportunity for investors. With strong community support, strategic involvement from major players like Marathon, and increasing adoption by small investors, Kaspa is positioned well for the future. Whether you’re a new investor or have been with Kaspa from the start, these developments should give you confidence in the project’s direction.