Bitcoin balances on Binance, the world’s largest cryptocurrency exchange, have more than doubled over the past 10 days to close to 600,000.
According to data from crypto analytics platform Coinglass, Binance currently holds More than 575,000 BTC coins were added, more than 137,011 coins were added in the last week and a total of 67,347 BTC coins were added in the last month.
Bitcoin is currently hovering around the $16,000 mark, with the Binance pile of BTC at over $9.2 billion. The recent surge in BTC on Binance following the unprecedented crash of FTX is clearly a reflection of consumer confidence in other smaller exchanges.
Coinbase Pro, Bitfinex, Gemini, and Kraken are the next fourth largest holders of bitcoin after Binance, with 528,900, 345,597, 153,212, and 70,622 coins, respectively, according to Coinglass. Among the top five exchanges, Binance is the only one that has seen positive net bitcoin inflows over the past week.
Binance is the world’s largest crypto exchange in terms of trading volume. The exchange has been in the news recently especially because of its partial involvement in the FTX saga. Initially, the exchange signed a non-binding agreement to acquire the troubled FTX but a day later walked away from the deal.
What is Proof of Reserve and why do exchanges need to share it?
The remarkable collapse of FTX, once the third largest cryptocurrency exchange that earned a reputation as the bail-out king of crypto during the recent crypto meltdown, has many in the crypto industry expressing concern over the credibility of centralized players.
To allay this skepticism, crypto authorities began sharing proof of stores. Proof of Reserve uses Merkle trees to capture data and derive a set of fingerprints that let users verify that their funds were properly audited by third parties.
Over the past few days, some of the largest cryptocurrency exchanges have shared their proof of reserves, revealing how much and which cryptocurrencies they store on behalf of their customers. Binance was one of the first to do this, followed by Crypto.com, Bybit and Huobi.
however, as informed of, crypto investment firm Grayscale has refused to share its proof-of-reserve, citing “security concerns”. In a recent Twitter thread, the company said that major cryptocurrency exchange Coinbase, which is used by Grayscale as a custodian, frequently performs “on-chain verification”.
However, the move has fueled speculation about Grayscale’s financial health. “I wasn’t worried about GBTC solvency before reading this statement, please explain how Proof of Reserves is a security risk?” said a Twitter user.
Bitcoin Crypto Related Post