Supply Concentration & Low Free Float
A small group of insider or team wallets controls most of the token supply, leaving very little actually trading on the open market.
How it works
With so little circulating, controllers can pin the price wherever they want — often holding it high to bleed leveraged short sellers through negative funding rates — then dump their entire position at once, collapsing the price with no recovery.
Red flags to look for
- ⚠Less than 50% of total supply is in free float (circulating)
- ⚠A handful of wallets hold the majority of tokens
- ⚠Price held unnaturally flat at a high level while funding stays negative
- ⚠Extreme fully-diluted valuation versus a tiny circulating market cap
- ⚠A single, sudden 90%+ collapse with no buyer support afterwards
Coins currently showing this pattern
60 assets from our most recent automated scan. These are algorithmic risk indicators, not allegations of wrongdoing.
Frequently asked questions
What is supply concentration in crypto?
A small group of insider or team wallets controls most of the token supply, leaving very little actually trading on the open market. With so little circulating, controllers can pin the price wherever they want — often holding it high to bleed leveraged short sellers through negative funding rates — then dump their entire position at once, collapsing the price with no recovery.
How does FraudCoins detect supply concentration?
Our automated scan runs daily against public market and on-chain data and applies the indicators listed on this page. Results are automated, opinion-based assessments — not statements of fact or allegations of wrongdoing.