Unlike a majority of those who were born with a phone in their hand, millenials my rights, okay, are you, are you on instagram? Are you on? Are you on Friendster? Oh you on snapchat. Are you on? Are you are you? Are you? Are you doing? Your Texas? Are you doing your Texas, hey? Are you doing your Texas? Are you doing your Texas? Are you on boarded? You know how we Laine hog it's time for Chico krypto. Well, these markets got. You excited compound surging big gains to be made. Well, I hate to burst your Krypto bubble, but those types of big gains are going to be few and far between for the retail investors, the more the markets mature and we get what everybody wants: Enterprise, an institutional adoption per example compound. We all know this token. It pumped like crazy, getting big listings from coinbase pro and now even the regular coin, based app all in the matter of a week, so here's the thing with comps distribution, nearly 4.3 million of the 10 million total comp are allocated for the users of the protocol. Through liquidity, mining, that's, great and all, but since launch how many have been distributed going to compounds dashboard, we can see just over 41 kr in the public's hands. That is not much. That is a smidgen. I mean look at the trading volume. It has been averaging between 20 million to above 30 million dollars. There is no way in but Jesus name that that small amount of tokens in the public hands is creating that level of volume it's impossible.
So other tokens must be flowing from someone but who, while going back to their breakdown on distribution, nearly 2.4 million tokens have been distributed to shareholders of compound Labs, Inc, yeah shareholders. Those are the ones doing some trading back and forth and taking an advantage of the pumps and volatility ripping through the markets, which you can confirm by going to ether, scan and checking out some of the largest comp wallets scrolling down. And how why, in the funk, would finance already have over 73 K more than the public's total of 41 K? Did they get some tokens or are they a shareholder or did a shareholder transfer them to be dump or market mate and who are those shareholders? While coin des put out an article last week, titled first mover compounds comp token more than doubles and price amid GFI mania, which tells us a few names. It states at 10 million comp tokens in existence include stakes held by compound executives and early investors such as coin base in the venture capital fund, andreessen, horowitz yeah. The same coin base, who listed the comp tokens on coin based pro and their app and the andreessen horowitz AKA 16z, one of the most powerful Silicon Valley and tech DC's out there. They are top tier and their investment and portfolio list goes on and on with some of the biggest tech names, Facebook group on lyft, Pintrest slack, current investments, Airbnb BuzzFeed, cipher trace, oh and of course, coin base and they're.
Actually, one of the largest investors in coinbase leading their twenty five million dollar 2013 funding round, and then you have and recent execs on the coin base board Katie Juan and Chris Dixon, which, besides them a 16z and coinbase, have shared other employees too. So going to compound labs crunch base for investors, we can see andreessen horowitz series a for compound and coin based ventures, seed round, but listed number one plus a list of others and then going back to compounds owned medium post on their token distribution. Only part of the distribution that explicitly states a lock up or vesting is for the compound founders and team. No other distribution pool states a lock up, so we got to assume the extra tokens like on Finance are from the shareholders pool as it cams is locked up and the other two are for future on Devore's, like future team members and future advancement of the protocol. So could it be the shareholders trading and pushing up the volume? Could it be them market making and reaping rewards across exchanges like finance, while retail investors go on a FOMO hunting spree? So the point I'm trying to get across is this: crypto is turning into something that resembles finance 1.0. Already rich, powerful individuals and VC is get to enjoy private rounds like the IPOs and finance 1.0. I mean, besides a 16 z. Andreessen horowitz coin base is made up of a string of VCS corporations and more.
This is just as of 2017 there's Union Square Ventures, Greylock partners, Adam Draper, smaller VCS, plus corporate and CVC, like USAA bank of tokyo, mitsubishi and NYC Euronext the fat cats get their fill, and that means a retail investor gets the scraps once trading starts those massive Gains may just be reserved for not your average, Joe or Jill, but the credited investors. Those who wealth exceeds what most can obtain 1 million in total wealth or income exceeding 200k per year, not fair, and it kind of goes against what crypto is all about, but that leads me into my next topic perfectly now. There is one project I have been getting interested in which actually people think right off the bat it's like compound, and that is polkadot from aetherium solidity and EVM creator Gavin wood. Why do people think polkadot is like compound? Well, back in June of last year, polkadot closed a private sale to raise some more funds for the future development of their platform and from the sale they claimed. A 1.2 billion dollar valuation sounds similar to compound from a coin Dez article on the topic, the swiss nonprofit said thursday that 500000 Dockins 5 of the total supply were sold at a targeted valuation for the project of 1.2 billion, which would mean they raised 60 million At a token price of 120 per dot and people are like, oh to private investors, v is yeah. That did happen, but it was only 5 of the total supply for a pretty damn high valuation to those guys they didn't get them for cheap or for free, and if you didn't know the total supply of da at polka dots genesis block will be 10 million And out of those 10 million back in 2017 october, to be exact, polka dot actually ran a public sale for half of the supply, five million tokens and they were successful raising more than a hundred and forty million dollars, average token price and the sale back.
Then 30 and that sale was actually analyzed by long hash. In an article titled, around 60 percent of polka dot, token holders are most likely individual investors in the article it states, polka dot had its first crowd, sale from october 14th to october 27 2017, during which it sold fifty percent five million dots of the total supply. So what is called a spend all second price dutch auction. This was not a traditional auction in which the price of the offering was set by the highest bid. Instead, the polka dot team initially set a very high, effective cap for the sale of dots making. It almost impossible for someone to buy all the tokens to end the auction. The effective cap went down over time as more participants and funds entered the auction. The cap was reached before the auction ended, and then they analyzed the five million dots from the auction and the wallets and found that there are only four whales who hold more than 100000. Meanwhile, 1801 addresses around 60 of all token holders old fewer than a hundred dots, and that, in my opinion, is more crypto and creates a better playing floor for all. And I could keep going on and on which I was when I wrote this script, but that video would have ended up being twenty minutes or more so tomorrow. I have something special coins connected to this ecosystem polka dot, who I have been eyeing for some time, and why is this something, I always say, follow the developers out of all protocols even aetherium, since last June, polka dot has seen the largest increase of deaths.
Building on their platform out of all major it's surged by 44, so the next episode is something you do not want to miss.