The cryptocurrencies held by Binance has increased over the past months and years. This was revealed by the Binance CEO, Changpeng Zhao in a recent release on August 1. According to Zhao, this may surprise many, considering that blockchain analytical charts show that a large chunk of cryptocurrencies leave exchanges within some periods.
According to a July 23 tweet by the Binance founder,
“When I read Glassnode reports bitcoin leaving exchanges, I was always like “huh?” The graph below explains it. Over shrinking, but Binance (and BFX) growing.”
CZ highlighted that the exchange’s deposits have increased steadily in the past months and year, adding that it is number one holder of cryptocurrencies among exchanges.
A recent update from Chainalysis seen on August 1 says,
“BTC flows to exchanges in the last day are 24.51k BTC, the lowest level in 36 days”
How People Responded
Bitcoin Hodl Club, @xbt_club, believes that the exchange held cryptocurrencies of Binance is increasing because many investors consider the platform as reliable.
“Its growing because everyone wants to leave small exchanges and go with the longest and biggest trusted cex. But yes alot of people have to choose either binance or cold wallet.”
Nevertheless, @chh2os a user on Binance said that exchange held coins will drop over time as more users adopt self custody.
“My guess would be that most exchanges that survive(not over leveraged) will all shrink to varying degrees of $BTC deposits moving forward as hot/cold self wallet storage options become more popular.”
Capital15C, investor and asset allocator said that Binance should advise people to take their cryptocurrencies off exchanges to have them better secure.