After the collapse of FTX, the incident prompted many major crypto exchanges to publish proof of reserves and lists of known addresses so that users could check the creditworthiness of trading platforms. While the veracity of these proof of reserve lists and asset dashboards is questionable, they provide insight into the large sums of cryptocurrency held by major exchanges. For example, Binance, the largest cryptocurrency exchange by trading volume, manages $66 billion in crypto assets, or more than 6% of the net worth of the entire cryptocurrency economy. cryptocurrency, which amounts to 1 trillion dollars.
An Inspection of 5 Lists of Proof of Reserves That Provide Insight into Large Cryptocurrency Holdings
It’s been more than 80 days since Coindesk published a narrative on the Alameda Research balance sheet, which showed that the quantitative trading desk had a large amount of ftx token (FTT). Then, on November 6, 2022, Binance CEO Changpeng Zhao (CZ) revealed that his exchange would sell his FTT holdings. Since then, FTT has lost considerable value and FTX deposit for bankruptcy protection five days later, on November 11. At that time, and before the failure of FTX, it was difficult to monitor the reserves of the exchange because the leaders kept things very opaque. This situation has led exchanges to publish proof of reserve listings and there has been critical of the crypto industry members on specific types of lists and how they are audited.
In addition, Paul Munter, Acting Chief Accountant of the United States Securities and Exchange Commission (SEC), recently declared that the SEC closely monitors proof of reserves (POR). Despite the complaints, available proof of reserve listings provide insight into what entities hold and to some extent help improve market stability as people can monitor holdings. The following is a review of five different centralized crypto asset exchanges and their holdings of crypto assets as of January 22, 2023, according to Nansen.ai’s exchange list. Nansen offers a dashboard for 18 different centralized crypto exchange platforms.
Binance is the biggest with $66 billion in digital assets held in reserves by the crypto exchange giant. On January 22, the largest crypto exchange by trading volume held 486,427 bitcoins (BTC), worth $11.1 billion. In terms of stablecoins, Binance holds $13.2 billion in tether (USDT) and $13.3 billion in BUSD.
Additionally, Binance holds 4.7 million ether, worth $7.6 billion, and another $7.6 billion worth of binance coins (BNB). The exchange also holds over $13 billion in other crypto assets that are too numerous to name. If Binance Reserve were included in the top ten crypto assets by market capitalization, it would rank fourth.
25.95% of Okx assets are held in Ethereum (ETH), or a balance of 1.2 million ethers, worth $1.9 billion, using current exchange rates for ETH. Additionally, Okx also holds approximately 294 million USD (USDC) coins.
Crypto.com manages approximately $3.83 billion on January 22, and his holdings currently include 44,208 BTC, worth just over $1 billion. The exchange also holds 514,763 ETHwhich is worth an estimated $833 million on Sunday.
Nansen’s Crypto.com dashboard further shows that the trading platform holds 17.28% of its shiba inu (SHIB) holdings. Crypto.com’s SHIB holdings comprise approximately 55.2 trillion SHIB, or $663 million of the token itself. The trading platform also manages around 585 million USD coins (USDC) and 2.1 billion cronos (CRO), worth around $167 million.
The Bitfinex digital currency trading platform holds $8 billion in crypto assets on Sunday, January 22, 2023. 54.29% of Bitfinex’s holdings are in bitcoin (BTC), or about 191,654 BTC, worth $4.36 billion today. 28.15% of Bitfinex’s assets are held in unused Leo (LEO) tokens, or approximately $2.2 billion worth of LEO.
The exchange also holds 466,014 ethereum (ETH), worth $756 million, on January 22. Additionally, Bitfinex manages 331 million tether (USDT) and 0.64% of Bitfinex assets, or approximately 126 million XRPare held on reserve.
Huobi hold on $3.17 billion on January 22, and 30.91% of the assets are in the exchange coin, huobi token (HT). The exchange manages 196 million HT, which is worth around $980 million today in USD value.
Huobi also holds 617 million tether (USDT) and 9 million tonnes (TRX), worth $596 million. 12.13% of Huobi’s assets are held in BTC5.35% is stored in ETH, and 13.35% of Huobi’s assets are alternative crypto assets too numerous to name. $7.7 million of the value comes from the 57.58 million HUSD held by Huobi, or 30.66% of the HUSD supply. While HUSD was once a US dollar-pegged stablecoin, HUSD now trades at $0.13 per coin.
The 5 exchanges hold $88.6 billion or 8.6% of the current USD value of the crypto economy
The five aforementioned cryptocurrency exchanges hold $88.6 billion in crypto assets combined. The combined value of the exchange’s five reserves equals 8.6% of the current $1 trillion crypto-economy.
74.49% of the $88.6 billion is held on Binance, and the rest is split between Okx, Crypto.com, Bitfinex, and Huobi. The trading platform with the largest exchange token coins is Bitfinex, with its $2.2 billion stash of LEO. Of the five exchanges mentioned, Binance holds the most Bitcoin (BTC) with its cache of 486,427 BTC.
What do you think of the recent trend for crypto exchanges to publish reserve proof listings and asset dashboards? Do you have any concerns about the veracity of these lists? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, the exchange list of nansen.ai,
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