CryptoCompare, a cryptocurrency data provider based out of London, has updated its cryptocurrency Exchange Benchmark. In the update, it has removed Binance crypto exchange from the list of the top ten digital asset exchanges. At the time of reporting, Binance is ranked as the second largest crypto exchange in terms of liquidity.
Notably, the top three cryptocurrency exchanges in CryptoCompare’s 2nd Exchange Benchmark are: Gemini, Paxos’ itBit, and Coinbase.
Binance & CryptoCompare
It is to be noted that the first Exchange Benchmark of CryptoCompare was published in mid-June 2019 with the aim of ranking around hundred cryptocurrency spot exchanges globally.
Interestingly, Binance is presently ranked at the twelfth position on the new list of CryptoCompare. Notably, Binance faced a major security breach on May 7 this year. During the security breach, the hackers purloined more than seven thousand Bitcoin worth around $42 million at the time of the hack. Afterwards, Binance noted that it will use its emergence insurance fund, Secure Asset Fund for Users, to cover the incident.
Crypto Exchanges & Cryptocurrency Custody
CryptoCompare mentioned in a press release, that the new rankings now include over one hundred and sixty active crypto exchanges (only spot). Moreover, the company found that only eight percent of analyzed crypto exchanges use a custody provider to store users’ digital assets, in its Q3 2019 Exchange Benchmark. On the other hand, only four percent of crypto exchanges offer 3rd-party insurance in the event of a hack.
Furthermore, CryptoCompare pointed out an upsurge in margin trading offerings since the month of June. It also noted that the crypto exchanges offering such trading now account for sixty two percent of total volume, as compared to fifty two percent in the month of June.
What do you think about the new report by CryptoCompare and the existing liquidity concerns in the crypto exchange markets? Let us know in the comments below.