Emerging data recently confirmed that Coinbase, a promising crypto exchange platform, currently holds 5% of all Bitcoin that currently exists – a substantial claim in the crypto universe. This revelation has led to mixed vibes in the community, with some recommending withdrawing Bitcoins from exchanges, whilst others raise practical qualms about storage alternatives, like cold wallets.
Arkham, a blockchain intelligence platform, is credited with the statistics surrounding Coinbase’s crypto holdings. Their reporting suggests that Coinbase holds just shy of a million Bitcoins, calculated to be worth over $25 billion based on the current market prices. A staggering 36 million addresses connected to Bitcoin deposits and holdings used by the exchange were identified. As per Arkham, Coinbase’s most significant cold wallet holds around 10,000 of these Bitcoins.
However, it’s not as clear-cut as it might seem. Indeed, Coinbase may be holding over $25 billion in Bitcoin, but it only outright owns 10,000 worth over $200 million. All that glitters is not gold, and the remaining Bitcoins belong to various investors tethered to the platform.
This new shift underlines the continuous need for emphasis on safety. With the growing number of crypto enthusiasts and the increasing value of Bitcoin, a single centralized entity bearing such a hefty supply has godsend potential but also huge risks. Those opposing hold a concern; they identify it as a sign to withdraw their BTC from exchanges, hinting at the risk attached to a centralized entity controlling such a volume of Bitcoin.
On the other hand, MicroStrategy posed a significant competitor to Coinbase in terms of Bitcoin ownership, boasting 152,800 Bitcoins, an asset worth over $4 billion.
In summary, while the exclusive volume of Bitcoin held by Coinbase could be an encouraging signal of the adoption of cryptocurrency, skeptics could interpret the news in an entirely different manner. Regardless, all stakeholders must deploy stringent safety measures to ensure the security of their assets. In a market characterized by its volatile and speculative nature, balance seems to remain the key to navigating these turbulent crypto waters.
Source: Cointelegraph
