Gray file reveals: 90% of the world's currency supply is held by only 100 wallets

Gray's submission reveals that 90% of Worldcoin's supply is concentrated in 100 wallets.

A recent filing by asset management company Grayscale with the U.S. Securities and Exchange Commission has brought Worldcoin (WLD) under review again. The document shows that about 90% of the project's circulating token supply is concentrated in just 100 wallets. The document, which is part of Gray's application to launch a spot WLD exchange-traded fund (ETF), was first reported by the crypto media Protos and raised significant questions about the project's claimed decentralized nature.

Concentration risks go far beyond wallet concentration

According to the document, extreme concentration of WLD tokens is not the only concentration risk. The document also details that Worldcoin relies on a centralized sorter to process transactions, a small number of holders have upgrade rights to project smart contracts, and only a limited set of bridging operators control the flow of assets between blockchains. Together, these factors point to a management structure that is far from the decentralization ideals typically advocated by cryptocurrency projects.

It is reported that Worldcoin's governance token WLD is rarely used in the actual decision-making process. The document states that the token plays a negligible role in protocol governance, with key operational and technical decisions made by a small core team. This dynamic undermines WLD's value proposition as a governance token and raises concerns that potential ETF investors may face these structural risks.

Impact on Worldcoin ETF

Gray's filing is part of a broader trend of asset managers seeking SEC approval for spot ETFs pegged to multiple cryptocurrencies. However, concentration of supply and reliance on centralized infrastructure can create unique regulatory obstacles. The SEC has historically been cautious about approving products that pose risks of market manipulation or control by a few entities.

Industry analysts point out that if wallet concentration data is accurate, it may complicate Gray's argument that the WLD market is sufficiently resistant to manipulation. The document itself does not necessarily indicate that Gray believes these risks are decisive, but it does force a transparent discussion of the asset's infrastructure.

Why it matters to investors

For retail and institutional investors, 90% of WLD supply is concentrated in 100 wallets, which means that a small number of holders may influence token prices by coordinating purchases and sales. Coupled with centralized control of sorters and bridging operations, the risk of unexpected changes or downtime to the network also increases. For anyone considering WLD as an investment, especially through regulated ETF products, these are substantive factors to focus on.

Conclusion

Gray's submission provides a rare and legally required perspective on Worldcoin's actual operations. Although the project has always positioned itself as a decentralized identity and financial network, evidence suggests that its structure is highly centralized. When the SEC reviews the ETF application, these findings are likely to become a central point of contention over whether the WLD meets regulated investment product standards. Investors should carefully weigh these centralized risks against the long-term vision of the project.

FAQs

Q: What were the main findings of Grayscale's filing with the SEC on Worldcoin?

The document shows that approximately 90% of WLD tokens in Worldcoin's circulation supply are stored in only 100 wallets, indicating a high degree of concentration of ownership.

Question: What other centralized risks are mentioned in the document?

document points out that the project relies on centralized sorters, a small number of holders have smart contract upgrade rights, and a limited number of bridge operators have weakened decentralization.

Q: What impact does this have on the proposed Worldcoin ETF?

The SEC may view high wallet concentration and centralized control as risks of market manipulation, potentially complicating the approval of spot WLD ETFs.