Unless I am missing something, this paper is referring to connections between addresses when it mentions the “Bitcoin network”. Not actual mining nodes. It does not have anything to do with a 51% attack.
In that case, the select few owners of these coins could dump their holdings to buyers who are otherwise unaware of these large numbers of "hidden" coins. The owners make good money, the buyers overpay.
After that, it would be up to the core developers and the new holders of the coins to make the Bitcoin ecosystem a valuable place to exchange money. If they do that, then the coin will survive all that inflationary volume.
If the oligarchy never dumps, then they've just aided Bitcoin price support.
A coin does not equal a vote in Bitcoin version support, only hashing power does.
But de facto, I suspect wallet size is correlated with hashing power.
