Families Worth up to $100 Million Prefer Algorithmic Cryptocurrencies to Tokens — Study

Families with a net worth of up to $100 million exhibit a strong preference for algorithmic cryptocurrencies over tokens (4.32% versus 0.92%), a new study has found. The study cites statistics indicating that ownership continuity is disrupted in 91% of cases involving a transition from crypto to fiat and vice versa.

Traceability of Ownership Continuity Harder with Algorithmic Crypto Assets

According to a study conducted by Owner One, ultra-rich families with a net worth of up to $100 million exhibit a strong preference for algorithmic cryptocurrencies over tokens (4.32% versus 0.92%). This preference persists despite the challenges often encountered while “converting back from crypto to fiat.”

The survey study, which investigated planned and force majeure wealth transfers from capital founders to heirs, highlights the difficulty in maintaining traceability of ownership continuity with algorithmic crypto assets like bitcoin (BTC). To support this assertion, the study cites “statistics” indicating that in 91% of cases involving a transition from crypto to fiat and vice versa, ownership continuity is disrupted.

Surprisingly, the study found that only 7% of ultra-rich families exercise due diligence before proceeding with a crypto transaction. For those who neglect this step, the study warns that they risk losing the so-called ownership history advantage.

Not Your Keys Not Your Coins

Regarding families’ basic knowledge of crypto assets, the survey reveals that only 12.82% are aware that once lost, ownership of crypto assets cannot be restored. The remaining 87.18% appear to be “nonchalant” about storing assets of this type.

Furthermore, the study highlights respondents’ lack of awareness regarding certain digital assets’ censorship resistance. To illustrate, the study points to the stablecoin USDT which can either be frozen or seized at the issuer’s discretion. The report also underscores the ultra-rich families’ limited understanding of the importance of self-custody in managing their crypto holdings.

“Centralized crypto exchanges (which are- like Binance- not exchanges at all in the traditional sense) are depositories for their clients’ assets and will take those assets down with them in case of any adverse events,” the study report concluded.

What are your thoughts on Owner One’s survey study findings? Share your thoughts in the comments section below.

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