How to read token holder concentration

Every token sold has to be absorbed by the pool. A wallet holding 20% of the supply can, on a thinly traded token, sell more than the pool can take without a collapse in price. The combination to watch is high concentration and low liquidity.

• Liquidity pools. The pool's own token account is often the largest holder. It is not someone who can sell; RateKite excludes the pool accounts it can identify.
• Exchange wallets. On established tokens, centralized exchanges hold balances on behalf of many customers.
• Locked or vesting accounts. Team or treasury tokens held by a vesting program cannot be sold until they unlock; check when.

On a token launched yesterday, there are rarely exchange or vesting accounts: a large wallet is usually just a large holder.

One person can split a position across dozens of wallets, for example by buying in the same block as the launch from many addresses. Each wallet then looks small, and the top-10 share understates how much one owner controls. Wallets funded from the same source and buying at the same moment are a common sign. Treat a low top-10 share on a brand-new token as a lower bound, not proof of a wide distribution.

• Top-10 holder share (pools excluded): over 25% adds 6 points, over 40% adds 12, over 60% adds 20.
• Largest holder: over 5% adds 3 points, over 10% adds 8, over 25% adds 15.

Holder data comes from an optional on-chain source and covers the 20 largest accounts. When it is missing, these factors show as not available and add no points. The other checks are in how to check a new token.