Things appear to be going from bad to worse for the Coinbase exchange at the moment, and according to a recent metric, the platform is no longer the exchange with the largest Bitcoin (BTC) holdings.
Binance flips Coinbase exchange in BTC holdings
Recently, Coinbase has been making headlines for all the wrong reasons. Firstly, the exchange laid off a sizeable part of its workforce, citing difficult market conditions. And more recently in June, Goldman Sachs gave the exchange a downgraded rating, after which reports also filtered through, of Coinbase closing down its affiliate-marketing program in the US.
According to a new tweet by a popular crypto analyst, Will Clemente, BTC holdings on Coinbase have dropped. Interestingly, the post also showed that in sharp contrast, BTC holdings on Binance saw an upsurge at around the same time.
As seen in the graph above, Binance surpassed Coinbase around the 600,000 BTC mark. That means Binance now holds the most BTC of any crypto exchange.
A wrong metric, perhaps?
That seems to be the opinion of one of the employees at Coinbase who is identified as Nick de Bontin on Twitter. Nick dispelled the on-chain data by Glassnode, saying it is not an acceptable metric. He further explains that the data must have forgotten that exchanges store assets in different ways. Nick believes that the data did not capture exchange funds in untagged addresses and cold storage.
It remains unclear, however, whether or not the data put the untagged addresses of both crypto exchanges into consideration.
Recently, many crypto enthusiasts have been expressing concerns over the future of Coinbase. In fact, a crypto influencer known as Ben Armstrong even went as far as predicting that the firm’s history signals it could soon be facing insolvency. And with Coinbase itself reporting losses to the tune of $430 million in Q1, 2022, anything is a possibility.