Do Crypto Exchange Reserves Rely Too Much on Their Own Tokens?

2022-11-23 06:50

Crypto exchange reserves have been cast into the spotlight following the FTX collapse. The composition of those reserves has also come into question.

Crypto exchanges have been clamoring to release their reserves data. But like most things in the industry, there are a lot of discrepancies between them.

FTX and Alameda relied too heavily on their own FTT token, which ultimately catalyzed its demise.

Crypto trader John Brown looked into various crypto exchanges’ reserves. What he found was quite a surprise, to say the least.

Bitfinex’s BTC+ETH accounts for 91% of the exchange’s reserves, while Coinbase accounts for 63%. But Binance is only 15%, KuCoin is 19%, Huobi is 22%. According to @john_j_brown. pic.twitter.com/p7KU04iHbu

— Wu Blockchain (@WuBlockchain) November 23, 2022 Reserves Reliance on Native Tokens

The analyst used CryptoQuant data to reveal that Bitfinex had the most Bitcoin and Ethereum reserves. More than 90% of the reserve assets held on the exchange are in BTC and ETH.

However, CoinMarketCap (which is owned by Binance) reports slightly different figures. In its newly launched exchange reserves feature, CMC reports that Bitfinex has $7.6 billion in reserves. Instead of 90% BTC and ETH, it reports that 35% is its own LEO token and just 58% in the top two crypto assets.

Brown’s data revealed that Crypto.com had 52% reserves in BTC and ETH. However, CMC reports just 37% in the top two and almost 20% in SHIB. The exchange’s own CRO token tanked on reports that its reserves were heavy on illiquid tokens such as Shiba Inu.

OKX was ranked third for BTC and ETH reserves at 45%, according to Brown’s data. CMC’s figures match this with 25% BTC, 20% ETH, and 48.5% in USDT reserves for OKX.

The big discrepancy was with the world’s biggest exchange, Binance. According to CryptoQuant data, it has just 15% of its reserves in the top two. Binance’s CMC reports just 21.5% of its reserves in BTC and ETH.

Around 41.5% of Binance reserves are in its own BUSD stablecoin and its native BNB coin. However, BUSD is independently issued by Paxos, a fully regulated stablecoin issuer, according to Changpeng Zhao.

As reported by BeInCrypto earlier this month, Binance reserves include around $40 billion in stablecoins (BUSD and USDT).

Coinbase Crypto Reserves Revealed

Coinbase’s reserve breakdown has just been released. On Nov. 23, CEO Brian Armstrong revealed that Coinbase holds around 2 million BTC worth approximately $33 billion at current prices.

Coinbase does not have a native exchange token, so at least those fears can be alleviated for this exchange.

If you see FUD out there – remember, our financials are public (we're a public company) https://t.co/ayzN0zaqgT

— Brian Armstrong (@brian_armstrong) November 22, 2022

The post Do Crypto Exchange Reserves Rely Too Much on Their Own Tokens? appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Safe Exchange Coin (SAFEX) на Currencies.ru

$ 0.0054306 (-0.25%)
Объем 24H $1.742k
Изменеия 24h: 1.41 %, 7d: -8.63 %
Cегодня L: $0.0053635 - H: $0.0055227
Капитализация $6.099m Rank 99999
Доступно / Всего 1.123b SAFEX

reserves crypto exchange tokens too much rely

reserves crypto → Результатов: 126


LBank to Publish an Auditable Merkle Tree and Proof of Reserves

The global crypto exchange, LBank, has recently announced that it will share its Merkle-tree proof-of-reserves, in view of recent concerns about the opaque nature of certain industry issues. LBank gave a public statement on November 9 stating that the exchange hopes to facilitate industry transparency and built a strong foundation of trust between exchanges and … Continued The post LBank to Publish an Auditable Merkle Tree and Proof of Reserves appeared first on BeInCrypto.

2022-11-16 17:00


Bitcoin Bearish Signal: Miners Continue To Dump

Data shows the Bitcoin miner reserves have continued to trend downwards recently, suggesting that miners have been dumping their coins. Bitcoin Miners Have Been Withdrawing From Their Wallets In Recent Days As pointed out by an analyst in a CryptoQuant post, BTC miner reserves have been observing negative change recently, something that could lead to a decline in the price of the crypto.

2022-8-25 22:00