Bitcoin worth $1.5B withdrawn from Coinbase in 48 hours

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Quote from: o_e_l_e_o on December 07, 2022, 06:35:54 AM

Quote from: arabspaceship123 on December 06, 2022, 03:13:33 PM

Was the 100,000 BTC converted to USDT?

The 100,000 figure I used above was simply an analogy. I was not using it in reference to USDT or any other specific platform.

It's owner withdrew 100,000 bitcoin from Coinbase for safe keep. Was it traded in USDT?

Quote from: stompix on December 07, 2022, 10:32:23 AM

Besides greed there is also another reason, some simply don't want to accept they are wrong, so after claiming for years that UST or Binance or Coinbase is safe and that nothing can happen they don't like to admit what they are doing is risky, it has worked in the past, till now everyone who warned was wrong, so they feel like they are right and they will be always right and the rest are simply just envious fear mongers.

We don't know how safe they are. For years they'll say their exchanges are safe. Customers aren't suspicious they're believing it because greed makes people behave bad. They don't know if their cryptocurrencies are stored safe, it doesn't stop them trusting exchanges. It's convenient and greed.

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Quote from: arabspaceship123 on December 06, 2022, 03:13:33 PM

That's easy to understand USDT isn't safe so why don't traders see it?

Why were people still holding Luna while this was crashing and calling it FUD?
Why are people trusting Binance #safu when it's clear they don't have the amounts needed to reimburse a bank run?
Why are some trusting BUSD when they don't even know where the entity behind BUSD is located?
Why are people still holding their coins on CEX even if they don't daily trade and why are some still risking assets for 5% apy?
or, and let's go back in time
Why were some calling MtGox crash FUD and were still trying to send money to that exchange to get cheaper coins?

Each person has their own way of thinking, each one will rust to believe in something and completely deny something else, from religion to the politicians they vote for to the coins they invest, so there will not be a moment without at least somebody claiming that tether is safe, that is backed by something and that we who doubt this are just FUD spreaders and we're doing so because we work for the competition.

Quote from: o_e_l_e_o on December 07, 2022, 06:35:54 AM

The same reason people continue to use all manner of unsafe and risky platforms - greed.

Besides greed there is also another reason, some simply don't want to accept they are wrong, so after claiming for years that UST or Binance or Coinbase is safe and that nothing can happen they don't like to admit what they are doing is risky, it has worked in the past, till now everyone who warned was wrong, so they feel like they are right and they will be always right and the rest are simply just envious fear mongers.

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Quote from: arabspaceship123 on December 06, 2022, 03:13:33 PM

That's easy to understand USDT isn't safe so why don't traders see it?

The same reason people continue to use all manner of unsafe and risky platforms - greed. They want profits. Trading back and forth to USDT or other centralized scammy "stable"coins allows them to chase profits more easily. It's the same reason people still store their coins on incredibly risky centralized exchanges or lending platforms, or why they throw their money away on altcoin/DeFi/NFT/etc. scams. They will keep using USDT or any of these other services, risking everything, while thinking "Well, it would never happen to me". Until, of course, it does.

Quote from: arabspaceship123 on December 06, 2022, 03:13:33 PM

Was the 100,000 BTC converted to USDT?

The 100,000 figure I used above was simply an analogy. I was not using it in reference to USDT or any other specific platform.

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That's a lot of bitcoins stored on an exchange. I can't think of how much trust this guy or institution have entrusted that amount of bitcoin on Coinbase.

Well, there's the idea that an exchange like Coinbase is "safe" for them so they deposit and let it there for a long time. But that's also good that it's been taken out there and if this is on the bank, they won't allow you to withdraw that much within a 1-2 days.

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Quote from: o_e_l_e_o on December 04, 2022, 12:42:33 PM

Exchanges have been caught commit a huge number of far more illegal activities, from selling user data to insider trading to helping themselves to users' funds for their own purposes. A little bit of fudging the numbers isn't going to phase them.

It's the way some operate their exchange business, if they don't add digits to their order books they don't attract investors. It's illegal but they've sold customers user data we know it.

Quote from: o_e_l_e_o on December 04, 2022, 12:42:33 PM

USDT is insolvent and is not backed up 1-to-1 as they claim. This has been proven in court on more than one occasion. And yet it continues to be widely used. It makes no sense.

That's easy to understand USDT isn't safe so why don't traders see it? It doesn't make sense they're using it to trade USDT if it isn't backed 1-to-1 on the dollar. There is a risk trading USDT, perhaps it will bring Bitfinex down when investors make high speed sell offs.

Was the 100,000 BTC converted to USDT?

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Quote from: arabspaceship123 on December 04, 2022, 11:51:22 AM

If they've taken loans days just before the audit it's got to be noticed. If they've seen it they'll publish it.

Why would an exchange publish details of a loan which shows they are insolvent? They will keep it under wraps, and it will go unnoticed. Just as emergency loans to Celsius, to Voyager, to BlockFi, etc., all went unnoticed in the run up to their collapse. If it was actually this easy to verify the solvency of a centralized platform, then we wouldn't have multiple platforms going bankrupt and taking millions of users' deposits with them.

Quote from: arabspaceship123 on December 04, 2022, 11:51:22 AM

there isn't a way to find out which exchanges have habits for boasting unverified figures.

All of them.

Quote from: arabspaceship123 on December 04, 2022, 11:51:22 AM

Falsifying market cap isn't short of fraud.

Exchanges have been caught committing a huge number of far more illegal activities, from selling user data to insider trading to helping themselves to users' funds for their own purposes. A little bit of fudging the numbers isn't going to phase them.

Quote from: arabspaceship123 on December 04, 2022, 11:51:22 AM

USDT isn't secure if it's backed by one exchange but it's used most for bitcoin transactions.

USDT is insolvent and is not backed up 1-to-1 as they claim. This has been proven in court on more than one occasion. And yet it continues to be widely used. It makes no sense.

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I don’t think exchanges like Binance would be attracting a well crypto-currency learned person. The dawn of the FTX issues has become quite an eye opener and many people are learning from such.

I believe we may see more withdrawals like this coming soon, imagine you had such amount on an exchange or even half of it and something happens to them, it would put anyone in a state that maybe beyond recoverable. If we weren’t affected by such exchange problems yet it’s best to learn from those that did.

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Quote from: Upgrade00 on November 28, 2022, 01:35:34 AM

Quote from: Hydrogen on November 28, 2022, 01:22:21 AM

It seems that the latest trend of large withdrawals came about in 2017. Perhaps after the bitfinex and tether investigations were launched. It could take time for consumer confidence to be restored in crypto exchanges.

Hopefully the confidence is never restored.

Any user so keen on decentralization of the cryptocurrency ecosystem would definitely say this same thing you said, but in reality, confidence in centralized body of crypto would be restored again, just that it will take some time, and how long?, I would say as long as FTX continues to remain in the news until it is totally and absolutely forgotten.

Personally, I am an advocate of decentralized cryptocurrency system, but the reality remains that the decentralized protocols we have currently are not yet matured enough to carry the weight of the entire cryptocurrency market capitalization, many traders still largely depend on centralized exchanges for their day to day trading due to the fact that decentralized exchanges lack the liquidity and volume required to trade and make profit successfully in the shortest period of time.
The people I consider to be making serious mistakes are those that are not traders, yet they leave their bitcoins/cryptocurrencies on centralized exchanges, reason for this I don't know, but I guess this is because many will never learn in a simple way, until they are forced to learn it the hard way.

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Quote from: o_e_l_e_o on December 04, 2022, 09:56:17 AM

And how do you know the proof of reserves is accurate? What's stopping an exchange taking out a loan the day before an audit and paying it back the day after? Or borrowing funds from one of their affiliated companies or entities? Or even just the CEO topping up the exchange wallets with their own funds prior to the audit. This exact thing has happened before with Bitfinex handing hundreds of millions of dollars of crypto to Tether on the very morning of their independent audits. And yet USDT continues to have a market cap of $65 billion, despite being a fractional reserve scam. Proof of reserves proves nothing.

If they've taken loans days just before the audit it's got to be noticed. If they've seen it they'll publish it. I don't know if proofs of reserve aren't accurate, there isn't a way to find out which exchanges have habits for boasting unverified figures. Falsifying market cap isn't short of fraud. USDT isn't secure if it's backed by one exchange but it's used most for bitcoin transactions.

Quote from: o_e_l_e_o on December 04, 2022, 09:56:17 AM

But without proof of liabilities, proof of reserves is meaningless. So an exchange proves they have 100,000 BTC in their wallets. What if they have 200,000 BTC in liabilities? What if they have huge outstanding loan repayments or debts they hide from the auditors? How do you even know you can trust the auditors?

It's all trust upon trust upon trust. There is no independent verification.

If audits get carried out it's their auditors jobs to go through everything but I'm with you, exchanges hiding their liabilities wouldn't be a surprise. It's happened before, if they're determined to hide something they'll do it. Independent verification wouldn't translate to much, the risk's too much. Where did the owner withdraw 100,000 bitcoin to?

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Quote from: Rigon on December 04, 2022, 08:27:48 AM

- snip -

Possible next target Coinbase, binance, blockfi and Kucoin

First thing that caught my eye reading this thread (would be funny if there wasn't so much money involved) is this meme pic you posted is already outdated in a few days : another door should be added as BlockFi deserve one all for itself considering they applied for for Chapter 11 bankruptcy protection in a New Jersey court because of their exposure to FTX collapse.

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Quote from: o_e_l_e_o on December 04, 2022, 09:56:17 AM

Quote from: arabspaceship123 on December 04, 2022, 09:23:57 AM

Proofs of reserves & unexplained strange movements of funds will get published if they're audited.

And how do you know the proof of reserves is accurate? What's stopping an exchange taking out a loan the day before an audit and paying it back the day after? Or borrowing funds from one of their affiliated companies or entities? Or even just the CEO topping up the exchange wallets with their own funds prior to the audit. This exact thing has happened before with Bitfinex handing hundreds of millions of dollars of crypto to Tether on the very morning of their independent audits. And yet USDT continues to have a market cap of $65 billion, despite being a fractional reserve scam. Proof of reserves proves nothing.

Also one of the main risks is anyway that the money is stolen by somebody that works at or owns the exchange. It is more simple than you would think because they own the keys, and coins can be mixed and sold worldwide. It is basically the perfect crime to disappear with stolen bitcoins.

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Quote from: arabspaceship123 on December 04, 2022, 09:23:57 AM

Proofs of reserves & unexplained strange movements of funds will get published if they're audited.

And how do you know the proof of reserves is accurate? What's stopping an exchange taking out a loan the day before an audit and paying it back the day after? Or borrowing funds from one of their affiliated companies or entities? Or even just the CEO topping up the exchange wallets with their own funds prior to the audit. This exact thing has happened before with Bitfinex handing hundreds of millions of dollars of crypto to Tether on the very morning of their independent audits. And yet USDT continues to have a market cap of $65 billion, despite being a fractional reserve scam. Proof of reserves proves nothing.

Quote from: arabspaceship123 on December 04, 2022, 09:23:57 AM

Complete verification of solvency shouldn't be a problem to detect but audits can't stop exchanges being targeted.

But without proof of liabilities, proof of reserves is meaningless. So an exchange proves they have 100,000 BTC in their wallets. What if they have 200,000 BTC in liabilities? What if they have huge outstanding loan repayments or debts they hide from the auditors? How do you even know you can trust the auditors?

It's all trust upon trust upon trust. There is no independent verification.

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Quote from: o_e_l_e_o on December 04, 2022, 08:08:52 AM

There are two points I would make about third party audits. First of all, they simply move the trust requirement. Instead of trusting the entity itself, you are now trusting the auditor. They still don't allow anything to be independently verified by the user themselves. And secondly, even if you do trust the auditor, they only show a snapshot at the time of the audit. Anything could have changed between then and now.

It's what can change between then and now what's worrying. There's trust with audits but in moving environments you don't know when the next security flaw's going to show. When it's NordVPN or ProtonVPN they've been asked by courts to hand over customers records. They've kept log times, email addresses & paying methods they don't log browsing history or anything related to customers identities. They don't give anything because they're not logging online activity.

Quote from: o_e_l_e_o on December 04, 2022, 08:08:52 AM

Not at all. In addition to the points I made above in regards to VPN providers, when it comes to exchanges, there are even more unknowns. The proof of reserves which many exchanges are starting to publish is easily tampered with or altered to make it appear more favorable to the exchange, and proof of reserves without proof of liabilities is absolutely meaningless.

There is no way for a user to ever verify completely the security, privacy, or solvency, of a third party they are using. The only way to do this is to keep your coins in your wallet.

Proofs of reserves & unexplained strange movements of funds will get published if they're audited. Complete verification of solvency shouldn't be a problem to detect but audits can't stop exchanges being targeted. Hackers are trying to get past security systems every day because they're storing billions in cryptocurrencies.

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Confidence of people on crypto have surely got shaken with the FTX incident but it is not the end of the world. Such incidents have happened in past also but still crypto survived and even touched new heights. I think it is overall good for crypto that bad people or projects get wiped out from the overall scenario. Slowly, scammers will realize that people will not trust their projects and will automatically keep them away from crypto space. One more positive thing out of this is that people will realize that it is never safe to keep funds on exchanges. One should use hardware wallets for full safety. There will always be two sides to see a situation, it is upto you, if you want to see positive side or the negative one.

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Quote from: Hydrogen on November 28, 2022, 01:22:21 AM

50,000 Bitcoin were withdrawn from Coinbase on Nov. 24 and 25, marking the third-largest withdrawal from the exchange.

A total of 100,000 Bitcoin (BTC) were withdrawn from Coinbase in the past two days, marking the third-largest BTC withdrawal in Coinbase’s history.

Two withdrawals worth 50K

There have been a few scandalous incidents in cryptocurrency that have slowly started to erode people's faith in cryptocurrency.

Luna Crashed
The biggest cryptocurrency hit was Terra Platform's Luna, Luna crashed 99% from May 11 - May 12 and dropped 0.02 from $120. Luna's price continued to decline until it finally dropped to $0.00000112. Those who had invested in the Luna platform and made long-term stakings were left completely bereft.

3Arrows Capital (3AC)
June15(Chapter 15) A Singapore based crypto hedge fund three arrow capital 3AC bankruptcy $10 billion Crypto funds due to the bear market and Luna Crashed.
After Luna Crush it once again created a negative image in the public mind. As a result, people's confidence in cryptocurrency is decreasing day by day.

FTX hacked and bankruptcy
The recent FTX hacked bankruptcy heralds a scandalous chapter in cryptocurrency. The FTX hack, one of the leading centralized exchanges in cryptocurrencies, and scamming users to the tune of $600 million has once again lost people's trust in centralized exchanges. Now people no longer want to keep cryptocurrencies on centralized exchanges. So people are constantly withdrawing cryptocurrencies due to fear and loss of confidence.

Possible next target Coinbase, binance, blockfi and Kucoin

Due to low trust of people in centralized exchanges and FTX's liquidity crisis and hacked people are vulnerable. Moreover, many thought that FTX might be followed by Coinbase's hack and bankruptcy. So 50k bitcoins were withdrawn from Coinbase on 24th November and 50k were withdrawn on 25th November. That is 48 hours 100k bitcoins are withdrawn.

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Quote from: Ayers on December 04, 2022, 07:37:59 AM

Quote from: glendall on December 04, 2022, 06:00:49 AM

coinbase shouldn't need to make news like this, because it will have a negative effect on centralized exchanges enough FTX and binance are making noise in the exchange world.

Coinbase does not publish this news, you need to know that we are using blockchain, which means everything is transparent and public, everyone can find it on the on-chain data. I don't see this as negative news, it shows that people have awakened and are more concerned about the safety of their property. Besides, this will also cause exchanges to try to improve their services if they still want to stay in business.

You are absolutely right. Exchanges have to make their system more secure, transparent, provide good quality service, to win the confidence of investors and keep their business running, otherwise, investors will move to decentralized exchanges. Collapse of FTX exchange has made inventors more vigilant and those who suffered will think thousand times before opening their account in any centralized exchange.

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Quote from: arabspaceship123 on December 04, 2022, 08:04:10 AM

Big brands NordVPN & ProtonVPN publish transparent audit reports every year to gain trust.

There are two points I would make about third party audits. First of all, they simply move the trust requirement. Instead of trusting the entity itself, you are now trusting the auditor. They still don't allow anything to be independently verified by the user themselves. And secondly, even if you do trust the auditor, they only show a snapshot at the time of the audit. Anything could have changed between then and now.

Quote from: arabspaceship123 on December 04, 2022, 08:04:10 AM

but can third party published audits of exchanges be considered proof of security?

Not at all. In addition to the points I made above in regards to VPN providers, when it comes to exchanges, there are even more unknowns. The proof of reserves which many exchanges are starting to publish is easily tampered with or altered to make it appear more favorable to the exchange, and proof of reserves without proof of liabilities is absolutely meaningless.

There is no way for a user to ever verify completely the security, privacy, or solvency, of a third party they are using. The only way to do this is to keep your coins in your wallet.

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Quote from: o_e_l_e_o on December 04, 2022, 07:18:32 AM

Quote from: arabspaceship123 on December 04, 2022, 06:44:59 AM

Exchange owners storing private keys in company emails isn't appropriate, it's what FTX did, other exchanges are professional with stronger security.

That's a big assumption to make, and one which is not true. FTX was the second biggest exchange in the world. Everyone assumed they would have decent security, and instead they had an unsecured group email account. Everyone assumed Coinbase had good security, and instead their data was being sold by a third party. Everyone assumed that Binance, that Bitfinex, that KuCoin all had good security, and all have been hacked and had coins stolen.

There isn't proof Binance, Bitfinex & KuCoin have better security to FTX. Their security could be worse we don't know. I made wrong assumption.

Quote from: o_e_l_e_o on December 04, 2022, 07:18:32 AM

The fact is that we have absolutely no idea what security exchanges do or do not have. You are trusting complete strangers, who have shown time and time again that they are grossly incompetent. Handing over coins or data to any exchange is a huge risk.

We don't know about security used by exchanges that's why I don't use them. Big brands NordVPN & ProtonVPN publish transparent audit reports every year to gain trust. If Binance, Bitfinex & KuCoin did the same it wouldn't stop hacking attempts, we know security flaws can be discovered after audits but can third party published audits of exchanges be considered proof of security?

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Quote from: glendall on December 04, 2022, 06:00:49 AM

coinbase shouldn't need to make news like this, because it will have a negative effect on centralized exchanges enough FTX and binance are making noise in the exchange world.

Coinbase does not publish this news, you need to know that we are using blockchain, which means everything is transparent and public, everyone can find it on the on-chain data. I don't see this as negative news, it shows that people have awakened and are more concerned about the safety of their property. Besides, this will also cause exchanges to try to improve their services if they still want to stay in business.

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Quote from: arabspaceship123 on December 04, 2022, 06:44:59 AM

Exchange owners storing private keys in company emails isn't appropriate, it's what FTX did, other exchanges are professional with stronger security.

That's a big assumption to make, and one which is not true. FTX was the second biggest exchange in the world. Everyone assumed they would have decent security, and instead they had an unsecured group email account. Everyone assumed Coinbase had good security, and instead their data was being sold by a third party. Everyone assumed that Binance, that Bitfinex, that KuCoin all had good security, and all have been hacked and had coins stolen.

The fact is that we have absolutely no idea what security exchanges do or do not have. You are trusting complete strangers, who have shown time and time again that they are grossly incompetent. Handing over coins or data to any exchange is a huge risk.

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Quote from: DaveF on November 28, 2022, 06:43:19 AM

So more then likely some big institution pulled their coins out, probably to calm their investors. Proving that they have it and it is safe. Not a big deal, and between the article and what we have discussed here spent more time discussing a non event then it's worth.

If, picking on a random brokerage, E*Trade pulled a bunch of cash out of one bank to bring it in house it would not even make the press.
If a investment fund switched some back end stuff around as to who held their investments if they did not do it in house it might make a line or 2 of text in places like Bloomberg.

-Dave

It's only making news because it's cryptocurrencies. If bitcoin wasn't moved it'd be a regular transaction in the business world. It wouldn't make headlines. Cryptocurrencies shouldn't be moved to exchanges.

Quote from: o_e_l_e_o on November 28, 2022, 07:41:39 AM

Quote from: Z-tight on November 28, 2022, 07:30:40 AM

there was a topic i read here the other day about self custody being more difficult to achieve than third party custody

Isn't it amazing that centralized exchanges have managed to convince people that writing down 12 words is outside of their capacity, and they need to give all their coins to complete strangers instead.

I'm not amazed they've convinced people to trust them because that's how they make money. These people should learn about about alternatives to exchanges. They require educating because it's easy to use Electrum.

Quote from: o_e_l_e_o on November 28, 2022, 07:41:39 AM

Quote from: Z-tight on November 28, 2022, 07:30:40 AM

that is the idea that a lot of people have and so they sleep well because they think the third party service is their safest option in keeping their BTC.

Pretty much every centralized exchange has lost coins in a hack at some point, so such an opinion is just provably wrong. Or take a look at FTX as a shining example - one of the biggest crypto exchange in existence, and court documents show that they were storing private keys on an unsecured group email account. This is the kind of "security" you get with centralized exchanges.

If exchanges haven't been hacked they've been attacked with attempted hacks. If you're trusting exchanges you don't hold private keys, you're relying on their security. Their failures will lead to hacks.

Exchange owners storing private keys in company emails isn't appropriate, it's what FTX did, other exchanges are professional with stronger security but it doesn't make sense to trust them.

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Quote from: Victorik on November 28, 2022, 06:32:31 AM

What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?

I met someone back in 2017 who only bought Bitcoin on exchanges (in Europe, so it wasn't even a big exchange). He couldn't sleep at night knowing no one was going to be there to hold his hand and guide him through if he'd lost his password to his wallet like I showed him too, let alone private keys or seed phrase. Regularly loses his email passwords, apparently, and keeps multiple copies of housekeys, carkeys, etc.

So I get it, Bitcoin self custody wasn't for him. At least, I said his wife should know, but that went down a whole different route, and myself haven't figured out how to get my family/next of kin to properly use either. Unfortunate, but it's actually not difficult to imagine why people still flock to exchanges. If I were as rich as Coinbase guy, I'd probably also have private insurance.

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I am happy that people are withdrawing their BTC from centralized exchanges. This means that something changed in the public opinion, and while surely people have heard 'not your keys, not your coins', way more people are taking it seriously now. I understand why prior to FTX some ignored it: if a company's reputable and convenient, surely the chance of you losing your money there because of it being a centralized exchange, right? Apparently, the chance is much higher than many anticipated, and if one of the biggest exchanges can go down, others don't seem safe anymore either.

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in this case . it's better for people to trust private wallets more than saving on centralized exchanges because they are not banks and the level of risk of loss is very large in my opinion,
and I think it is normal for owners to withdraw their funds to their personal wallets,
coinbase shouldn't need to make news like this, because it will have a negative effect on centralized exchanges enough FTX and binance are making noise in the exchange world.

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I have another take on this....

People know the risk of holding coins on an exchange (well most of them) but they have to keep them on there for their trades and trading bots to function.

I think the reason why so many people withdrawn their coins, has more to do with the fear of the repercussions of the FTX incident. (They know there will be some kind of over reaction from the regulators all over the world, so they withdraw the coins to avoid those counter measures) Wink

There is no need to panic, most of those coins are in cold storage... ready to be deposited ..when the market recovers and the regulators calmed down. Wink

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This can a piece of good news if you consider the same situation on other exchanges because withdrawing huge amounts of bitcoin from exchanges shows us that people are not really trying to sell their bitcoin but prefer holding their bitcoins that's why they prefer to hold their inside their wallets instead of depositing the bitcoin exchanges for selling all these can be a good positive signal for bitcoin price to reach higher targets.

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That is good thing isn't it?

Finally they might have decided to invest some money into buying Ledger Hardware wallet for their Bitcoins. Grin

Up until now they might be lazy enough for not buying it Or they were just buying and buying without any second thought to exchangers security.

This is definitely reaction to the FTX incidence only. I think FTX was amazing lesson for every crypto user and at the same time it was the most expensive one!

Now let's just hope that others will also follow it as positive vibe rather than selling with FOMO reaction to the high volume movement like this. By the way that is one crazy rich guy out there. Cheesy

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Quote from: o_e_l_e_o on November 28, 2022, 09:53:05 AM

It's certain that some exchanges are lying about how much they have in reserve, but you are right - they still hold millions of bitcoin.

I'm just interested in how far these lies go, because in the case of Coinbase, I remember that we had several discussions on the forum about which CEX has the most BTC in its possession, and at the beginning of 2020 some estimates were that Coinbase had a little less than 1 million BTC. Now, a little less than 3 years later and everything that happened in the meantime, Coinbase claims to have even 2 million BTC - and all the time we read about "huge outflows from exchanges".

Quote from: o_e_l_e_o on November 28, 2022, 09:53:05 AM

As long as centralized exchanges exist there will be people who are dumb enough to leave their coins on them, but we should be happy to see that number reducing.

I hope that people's habits will change, especially after what happened with FTX and before that with the so-called stablecoin from Kwon, or with dozens of smaller CEXs that failed in one way or another in the last ten years.

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Quote from: Lucius on November 28, 2022, 09:19:58 AM

but the fact is that CEX has millions of BTC in their possession according to what they are announcing these days - or maybe they are lying to us about it?

It's certain that some exchanges are lying about how much they have in reserve, but you are right - they still hold millions of bitcoin. But if you look at some independent data such as the Glassnode graphs presented in OP's article, or this from Glassnode, it does show huge outflows from exchanges and the total balance being held on exchanges to be the lowest it's been in over 4 years.

As long as centralized exchanges exist there will be people who are dumb enough to leave their coins on them, but we should be happy to see that number reducing.

Quote from: Slow death on November 28, 2022, 09:31:33 AM

I hope it's nothing serious or is this just on my side?

I don't have an account so I can't try to log in, but the link you have provided loads normally for me on Tor.

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Quote from: Beparanf on November 28, 2022, 06:12:40 AM

Partly confirmed since the balance on Coinbase wallet decreases as per the graph shown on the article. The balance will be just the same if the withdrawal is just an internal transfer besides many says that this is just a show off from Coinbase to give confidence to there user that they can still handle huge amount withdrawal without a problem since they lately boast that they are holding huge amount of Bitcoin according to there CEO tweet.

Nothing is confirmed at all.

This graph is just showing the number of coins held by addresses that are confirmed or at least believed to be owned and in control of Coinbase.
With this comes two problems, we don't know for sure those wee Coinbase addresses, we don't know all the addresses owned by Coinbase and we don't know if they haven't just moved a few of their coins from the cold storage to Coinbase Custody, which is actually holding most of the coins owned by big investors who pay Coinbase to take care of their coins. What the graph shows is you taking $100 out of your wallet, the one observing this doesn't know for sure how much more you have just a quick peak, how much you have in your pockets and it also doesn't know if after pulling out that 100$ it didn't just go in your wife's wallet.

The other problem with this is that for years I've been hearing of people pulling and pulling coins from Coinbase so that graph continuously sowing only withdrawals and not going into a negative is another of those miraculous analyses only glassnode is capable of.

Quote from: Slow death on November 28, 2022, 09:31:33 AM

what is happening with binance that every day is like this, I do not see any information on their twitter, I have tried all my browsers and it does the same thing, I have already turned off the computer several times, I have even tested it with VPN and nothing, what is happening? I hope it's nothing serious or is this just on my side?

Works fine here, you tried this on a desktop or smartphone?

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Quote from: Hydrogen on November 28, 2022, 01:22:21 AM

Amazingly enough binance and others affiliated with FTX are still plying their wares, in the hope of attracting investor capital.

taking advantage of what you mentioned about binance, is anyone here managing to get into binace? for me it just looks like this:

https://www.binance.com/en/trade/LTC_USDT

what is happening with binance that every day is like this, I do not see any information on their twitter, I have tried all my browsers and it does the same thing, I have already turned off the computer several times, I have even tested it with VPN and nothing, what is happening? I hope it's nothing serious or is this just on my side?

Quote from: Victorik on November 28, 2022, 06:32:31 AM

What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?

I would also like to get inside these people's heads and try to understand all of this, but apparently because they are very rich people they are no longer afraid when it comes to dealing with a lot of money, if they are hacked targets they know they won't be arrested, so they can afford to sleep well because even by law they could not be arrested when a hacker steals money from their exchange, the worst that could happen would be for them to pay a fine, in my country I would be liable for the crime of irresponsibility and would take leave of absence and would have to compensate all people

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Quote from: o_e_l_e_o on November 28, 2022, 06:12:17 AM

Quote from: Lucius on November 28, 2022, 05:43:47 AM

Spreading panic should not be something serious members of this forum deal with - and this topic is nothing but exactly that.

I don't see it that way. Rather, it is a good sign that more and more people are finally waking up to the mistake that is centralized exchanges and are pulling their money off said exchanges.

I would still agree here with the opinion expressed by @DaveF, because the transactions in question are certainly not related to with the fact that ordinary people have finally opened their eyes and realized that the exchange is not a bank, but rather the move of some extremely rich individual or company. If it encourages many others to do the same, that would be something worth discussing - but the fact is that CEX has millions of BTC in their possession according to what they are announcing these days - or maybe they are lying to us about it?

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Quote from: o_e_l_e_o on November 28, 2022, 07:41:39 AM

Quote from: Z-tight on November 28, 2022, 07:30:40 AM

there was a topic i read here the other day about self custody being more difficult to achieve than third party custody

Isn't it amazing that centralized exchanges have managed to convince people that writing down 12 words is outside of their capacity, and they need to give all their coins to complete strangers instead.

Quote from: Z-tight on November 28, 2022, 07:30:40 AM

that is the idea that a lot of people have and so they sleep well because they think the third party service is their safest option in keeping their BTC.

Pretty much every centralized exchange has lost coins in a hack at some point, so such an opinion is just provably wrong. Or take a look at FTX as a shining example - one of the biggest crypto exchange in existence, and court documents show that they were storing private keys on an unsecured group email account. This is the kind of "security" you get with centralized exchanges.

People like pushing their responsibilities to someone or an organization. But the recent happenings involving exchanges have made people wake up and take the responsibility of safely keeping their keys and learning how to pay attention to details.

One of the impediment to avoiding or boycotting the use of these exchanges are the difficulties encountered when converting bitcoin to fiat. Some local currencies or country are not listed in some of these decentralized exchange platforms and P2P trading have not developed in some countries. Like in my location we are trying to build a viable bitcoin community that would promote P2P transactions. I am sure in a few years centralized exchanges would have less influence in my locality.

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Quote from: Z-tight on November 28, 2022, 07:30:40 AM

there was a topic i read here the other day about self custody being more difficult to achieve than third party custody

Isn't it amazing that centralized exchanges have managed to convince people that writing down 12 words is outside of their capacity, and they need to give all their coins to complete strangers instead.

Quote from: Z-tight on November 28, 2022, 07:30:40 AM

that is the idea that a lot of people have and so they sleep well because they think the third party service is their safest option in keeping their BTC.

Pretty much every centralized exchange has lost coins in a hack at some point, so such an opinion is just provably wrong. Or take a look at FTX as a shining example - one of the biggest crypto exchange in existence, and court documents show that they were storing private keys on an unsecured group email account. This is the kind of "security" you get with centralized exchanges.

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Quote from: Victorik on November 28, 2022, 06:32:31 AM

What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?

grey scale gave 635,000 btc to coinbase.. and coinbase has terms of service to not tell greyscale or greyscale customers where the proof of reserves is.. ..

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Well, for sure people will have impressions such as whales withdrawing their assets but as we can see on the market price, it didn't fill red marks which should have tickle a bit. Meaning, the amount was just transfered probably on their wallet. If we won't use our comprehension, this might cause FUD towards small investors therefore we should not emphasize such thing to avoid misconceptions and panic.

Quote from: Victorik on November 28, 2022, 06:32:31 AM

What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?
Considering the inherent risk attached to keeping tokens on exchange, I will say it is rather unwise to leave your funds in an exchange, no matter how secure they claim to be.

Some people still will never learn their lessons, they prefer to learn the hard way.

Whale things I guess? They are simply comfortable with this industry for being in years. Coinbase on the other hand is a trusted exchanger. But maybe he just made sure of things given that what happened recently, rarely occur. So he probably eliminated the risk of losing money due to negligence. As long as he won't sell it, the amount will continue 'living'. He might be planning to rest that amount for months or even year until the market recover.

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Quote from: Victorik on November 28, 2022, 06:32:31 AM

Some people still will never learn their lessons, they prefer to learn the hard way.

Peole choose 'convenience' over the safety of their coins, there was a topic i read here the other day about self custody being more difficult to achieve than third party custody, that is the idea that a lot of people have and so they sleep well because they think the third party service is their safest option in keeping their BTC.

Self custody isn't difficult, the only requirement is responsibility, and just the way only the owner of a property or something can care for it in the best way possible, that is the way only a BTC owner can show full responsibility in keeping their BTC safe, if you give your BTC to a third party service to keep for you, you now have to trust them when you know nothing about them or what is going on behind the scenes, but when you keep it yourself, you are liable to yourself and if your funds are 'dear' to you you'll keep them safe without encountering any problems.

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So more then likely some big institution pulled their coins out, probably to calm their investors. Proving that they have it and it is safe. Not a big deal, and between the article and what we have discussed here spent more time discussing a non event then it's worth.

If, picking on a random brokerage, E*Trade pulled a bunch of cash out of one bank to bring it in house it would not even make the press.
If a investment fund switched some back end stuff around as to who held their investments if they did not do it in house it might make a line or 2 of text in places like Bloomberg.

-Dave

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What I don't understand is how can someone be holding such amount of BTC in an exchange and still sleep at night?
Considering the inherent risk attached to keeping tokens on exchange, I will say it is rather unwise to leave your funds in an exchange, no matter how secure they claim to be.

Some people still will never learn their lessons, they prefer to learn the hard way.

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Quote from: Lucius on November 28, 2022, 05:43:47 AM

Can anyone confirm that this is a transaction from Coinbase to an external wallet, or is it an internal transaction? It wouldn't be the first time that panic was created around such transactions, only to find out later that the funds still remained with the same company, just at a different coin address.

In addition, Coinbase has announced that it keeps about 2 million BTC in its possession, so if it is correct or approximately correct, I ask the question, what does 5% mean in the bigger picture? Spreading panic should not be something serious members of this forum deal with - and this topic is nothing but exactly that.

Partly confirmed since the balance on Coinbase wallet decreases as per the graph shown on the article. The balance will be just the same if the withdrawal is just an internal transfer besides many says that this is just a show off from Coinbase to give confidence to there user that they can still handle huge amount withdrawal without a problem since they lately boast that they are holding huge amount of Bitcoin according to there CEO tweet.

Those Bitcoin is being tracked already and let’s see if this will just came back unspent to confirm the theory. I doubt too that this wallet belongs to a whale, It’s either it’s coinbase own balance or other exchange balance that pull out in there.

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Quote from: Lucius on November 28, 2022, 05:43:47 AM

Spreading panic should not be something serious members of this forum deal with - and this topic is nothing but exactly that.

I don't see it that way. Rather, it is a good sign that more and more people are finally waking up to the mistake that is centralized exchanges and are pulling their money off said exchanges.

Quote from: Oshosondy on November 28, 2022, 05:57:40 AM

Please can you suggest a decentralized solution for we traders as we depend on those exchanges?

Afraid I can't. As you say, I'm not a trader, and my point is that bitcoin was designed to be a currency, not to be a tool used to simply increase the amount of fiat you own. If less people used centralized exchanges for trading and more people simply bought and used bitcoin peer to peer as a currency, we wouldn't be in this mess to begin with. The decentralized exchanges I would recommend, such as Bisq or RoboSats, do not lend themselves to daily trading.

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Quote from: o_e_l_e_o on November 28, 2022, 05:38:41 AM

We can absolutely live without them. I have never once used a centralized exchange in my entire life, and yet I would wager that I am more involved in the bitcoin ecosystem than 99% of other bitcoin users given that I use and spend bitcoin as a currency almost daily. Yes, we might not see the same fiat denominated prices without centralized exchanges, but bitcoin itself does just fine (better, in fact) without them.

We can leave without them, those centralized exchanges are not needed before making bitcoin transaction, definitely true. But from the way you post, it is clear that you are not a trader but which is good. If you trade daily, leveraging with opening and closing position daily or weekly, you may slightly depend on an exchange.

Please can you suggest a decentralized solution for we traders as we depend on those exchanges? But only trading funds are there, winnings are withdrawn to a noncustodial wallet.

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Can anyone confirm that this is a transaction from Coinbase to an external wallet, or is it an internal transaction? It wouldn't be the first time that panic was created around such transactions, only to find out later that the funds still remained with the same company, just at a different coin address.

In addition, Coinbase has announced that it keeps about 2 million BTC in its possession, so if it is correct or approximately correct, I ask the question, what does 5% mean in the bigger picture? Spreading panic should not be something serious members of this forum deal with - and this topic is nothing but exactly that.

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Quote from: davis196 on November 28, 2022, 01:48:47 AM

The entire situation with centralized crypto exchanges can be summarized in one sentence.
"We can't live with them, we can't live without them."

We can absolutely live without them. I have never once used a centralized exchange in my entire life, and yet I would wager that I am more involved in the bitcoin ecosystem than 99% of other bitcoin users given that I use and spend bitcoin as a currency almost daily. Yes, we might not see the same fiat denominated prices without centralized exchanges, but bitcoin itself does just fine (better, in fact) without them.

Quote from: EarnOnVictor on November 28, 2022, 02:19:00 AM

But I don't see a reason why anyone would move to another wallet from Coinbase since they are better regulated.

It means nothing. Every exchange is as risky as every other exchange. The only safe place for your coins is your own wallet.

Quote from: CryptSafe on November 28, 2022, 03:09:51 AM

With the happenings around the world on Crypto exchanges, one would ask if truely blockchain is decentralized?

"Blockchain" isn't a single entity. Bitcoin is decentralized. Centralized exchanges are not. Most altcoins are not. If your money is in altcoins or on centralized exchanges, then you are liable for large losses. If your money is in bitcoin and in your own wallet, then you are quite safe.

Quote from: virasog on November 28, 2022, 04:24:16 AM

Well at that time there were only investigations on Tether and Tether never collapsed.

I still find this highly surprising, given that it was 100% proven in court documents and filings that Tether is fractional reserve and do not hold nearly enough assets to cover all outstanding USDT. And yet for some reason they continue to attract new users.

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Quote from: Oshosondy on November 28, 2022, 05:28:02 AM

Quote from: Jon_Hodl on November 28, 2022, 04:49:11 AM

That's a great start. Now we need the other 38 billion to withdraw to self-custody so that Coinbase will hold 0 bitcoin and will be unable to continue to suppress the price with their fractional reserves.

Why Coinbase?

And how do you expect that to be possible? You literarily mean no trading should occur on exchanges again, but that is not possible.

Coinbase is a good exchange. But normally, all coins that are not used for trading on exchanges should be moved to a noncustodial wallet.

Coinbase is a terrible platform. It's rife with shitcoin scams. They are actively working with chain anal companies to destroy bitcoin privacy. There's no way for me to prove it but I think they are one of the largest fractional reserve bitcoin banks in the world and one of the largest reasons why the price is as low as it is. Coinbase is not good for bitcoin.

I don't expect it to be possible. It will never happen. People seem to love third-party custody and losing their money.

Trading should absolutely occur as their needs to be a way to buy bitcoin with fiat currency but there are a multiple other bitcoin only companies that are much better than Coinbase.

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Quote from: Jon_Hodl on November 28, 2022, 04:49:11 AM

That's a great start. Now we need the other 38 billion to withdraw to self-custody so that Coinbase will hold 0 bitcoin and will be unable to continue to suppress the price with their fractional reserves.

Why Coinbase?

And how do you expect that to be possible? You literarily mean no trading should occur on exchanges again, but that is not possible.

Coinbase is a good exchange. But normally, all coins that are not used for trading on exchanges should be moved to a noncustodial wallet.

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That's a great start. Now we need the other 38 billion to withdraw to self-custody so that Coinbase will hold 0 bitcoin and will be unable to continue to suppress the price with their fractional reserves.

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Quote from: Hydrogen on November 28, 2022, 01:22:21 AM

It seems that the latest trend of large withdrawals came about in 2017. Perhaps after the bitfinex and tether investigations were launched. It could take time for consumer confidence to be restored in crypto exchanges.

Well at that time there were only investigations on Tether and Tether never collapsed. But this time is different as FTX collapsed and people lost a lot of funds in the exchanges.
So it will take some time while people will regain confidence in this market. However, bitcoin and crypto are not going anywhere. However, I don't see people will regain trust in centralized exchanges and that is overall good for the market. People never listen before but now everyone agrees to keep their funds in their own decentalized wallets.

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Quote from: Ryker1 on November 28, 2022, 03:54:09 AM

How about the last few days Coinbase revealed their bitcoin balance?

People have a selective way to read the news and this may have been missed by many.

Quote from: Ryker1 on November 28, 2022, 03:54:09 AM

Well, that is good news --people have learned from what FTX and Binance drama and they are now afraid to store their funds on any centralized platforms.

Actually I think that this a result of CZ FUD on Coinbase. He tweeted that Coinbase has issues / insufficient money, then removed that tweet later on, after it made its effects.
You can read on this on all news and also on bitcointalk (for example here).

Quote from: Ryker1 on November 28, 2022, 03:54:09 AM

But I don't think this has an effect on the market, as I see bitcoin does not have a reaction but instead it maintained on the price range where bitcoin struggled to resist.

Panic is never good on the market. Panic can easily take the price lower. And if, by chance, another exchange bites the dust... it will not be pretty.

Quote from: Ryker1 on November 28, 2022, 03:54:09 AM

Is there any news on Binance on how much bitcoin has been withdrawn?

This is a good question. I don't know the answer, but I can guess that Binance, no matter CZ advertisements and CZ throwing stones towards the competition, is also tested by withdrawals. Sadly, I don't know the magnitude of that.

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How about the last few days Coinbase revealed their bitcoin balance?
Well, that is good news --people have learned from what FTX and Binance drama and they are now afraid to store their funds on any centralized platforms. But I don't think this has an effect on the market, as I see bitcoin does not have a reaction but instead it maintained on the price range where bitcoin struggled to resist. Is there any news on Binance on how much bitcoin has been withdrawn?

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Wow,what a huge withdrawal,imagine the number of people thay keeps their Bitcoin in a centralized system that is not safe,giving these centralized system power over their investment.

FTX crash happened and this has taught so many bitcoin investors to know the implication of keeping their coins in an exchange. So many persons have understood the advantage of keeping their coins in a noncustodial wallet, I am happy they have learnt from the recent incidents and have started embracing bitcoin decentralized system. P2P will be used more and, the exchange should be used only when trading. Nobody knows which exchange is the next to collapse so this is a smart move that they did in other to avoid regrets.

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Quote from: Hydrogen on November 28, 2022, 01:22:21 AM

Quote

50,000 Bitcoin were withdrawn from Coinbase on Nov. 24 and 25, marking the third-largest withdrawal from the exchange.

A total of 100,000 Bitcoin (BTC) were withdrawn from Coinbase in the past two days, marking the third-largest BTC withdrawal in Coinbase’s history.

Two withdrawals worth 50K

The chart below shows the BTC withdrawals and deposits in Coinbase on a daily basis since the beginning of the year.

On Nov.24, 50,000 BTC were withdrawn from Coinbase. The amount equated to over $800 million at the time, which marked the second-largest BTC withdrawal from Coinbase in 2022. The next day, on Nov. 25, another 50,000 BTC withdrawal took place, which equates to over $825 million at the time of writing.

Considering that Coinbase is preferred mainly by large U.S. institutions, it can be said that they are taking advantage of the affordable prices and accumulating BTC, as the on-chain data indicates that the bottom of the bear market cycle might be near.

Third-largest withdrawal in Coinbase

The chart below represents Coinbase’s BTC deposits and withdrawals since the exchange was launched in 2014.

With the second 50,000 BTC withdrawal, Coinbase reserves lost more than $1.5 billion worth of BTC in two days, which currently marks the third-largest BTC withdrawal in Coinbase’s history.

According to the chart, the most significant withdrawal was recorded in late 2017, and the second-largest one took place in mid-2022 after the Terra (Terra) collapse.

It’s not just Coinbase

The data shows that Coinbase is not the only exchange experiencing large BTC withdrawals. The chart below demonstrates the BTC balance on all exchanges since January 2018, and a significant downfall can be seen since January 2022.

According to the data, the balance on decentralized exchanges has fallen below 12% for the first time since January 2018.

https://cryptoslate.com/bitcoin-worth-1-5b-withdrawn-from-coinbase-in-48-hours/

....

It seems that we're witnessing a mass migration of funds being pulled from exchanges in the wake of the FTX incident.

Amazingly enough binance and others affiliated with FTX are still plying their wares, in the hope of attracting investor capital.

As depositors take larger steps to protect their wealth and secure holdings, will it be enough to stem a tide of the high number of electronic hacks we've witnessed in 2022?

It seems that the latest trend of large withdrawals came about in 2017. Perhaps after the bitfinex and tether investigations were launched. It could take time for consumer confidence to be restored in crypto exchanges.

Investors and traders are now wiser to be washed and convinced to leaving their funds in third party exchanges. With the happenings around the world on Crypto exchanges, one would ask if truely blockchain is decentralized? The happenings has really casted doubt in the minds of people about Crypto which has given room for lots of statement about Crypto going as far as people and government justifying their claims as regards Bitcoin. I think this is one too many of the panicked investors worried about their funds in the hands or custody of a third party. The carelessness and recklessness of most third party exchanges are becoming unbearable and unbelievable to start with. Funds withdrawal is absolutely the best option now as it would not make any sense waking up to hear an unfortunate news in respect to ones investment and funds under the care of a third party exchange gone.

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Quote from: EarnOnVictor on November 28, 2022, 02:19:00 AM

I panicked initially when I saw this news before I realized it was nothing near hacking, and this cools my mind. It was just a withdrawal and might be a panic withdrawal though after the FTX palaver. It might be that the person or persons were trying to move their investments to fiat or another wallet. But I don't see a reason why anyone would move to another wallet from Coinbase since they are better regulated.

Yes, it is not hack at all, it can also happen. It is insane that such huge amount can be on an exchange and left alone there. It was moved from Coinbase which was refered to Coinbase exchange.

Quote

The data shows that Coinbase is not the only exchange experiencing large BTC withdrawals. The chart below demonstrates the BTC balance on all exchanges since January 2018, and a significant downfall can be seen since January 2022.

We hope people continue to know the benefit of noncustodial wallet, but this may be about the person not ready to sell for fiat or convert to other assets, but to hold in long term.

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People are afraid to hold funds on the exchange after so many incidents. Even I am not optimistic about putting money into Binance. Who knows if Binance or Coinbase will fall into line? It's all about the funds. To be honest, exchanges are destroying the crypto market. That is why we have recently seen a massive withdrawal from the exchange. Nobody wants to lose their hard-earned money. Feel better when assets are stored in a non-custodial wallet where we can control our funds without the involvement of a third party.

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I panicked initially when I saw this news before I realized it was nothing near hacking, and this cools my mind. It was just a withdrawal and might be a panic withdrawal though after the FTX palaver. It might be that the person or persons were trying to move their investments to fiat or another wallet. But I don't see a reason why anyone would move to another wallet from Coinbase since they are better regulated.

The total amount is valued at $1.625B (100,000BTC) at that time and it's truly huge, but would be the last of the heavy transfers to witness this season.

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Whoever owns those sums of bitcoins on exchanges like Coinbase, they're just playing it to be safe. But with such news, it's not that big anymore when someone withdraws big amounts of bitcoin from exchanges.
The effect is just like when someone, a whale transfers huge amount of bitcoin from another address that's also being tracked by whales tracker/report.

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Quote from: Hydrogen on November 28, 2022, 01:22:21 AM

It seems that we're witnessing a mass migration of funds being pulled from exchanges in the wake of the FTX incident.

Funds are not only withdrawn, thankfully we might be going hand-in-hand with the exact ideology of the Bitcoin system being largely P2P. It is quite surprising that the CEXs since inception in 2010 has pulled a great wave in cryptocurrency such that it assumably appear to many as the only panacea to get cryptocurrencies. That makes me wonder how early bitcoiners embraced it to this prominence. The CEXs has over the years acted Like the traditional banks which only required to keep just 10% of customer's deposit, having 90% of it for use, which faults the ideology of Bitcoin, bringing limitations to the proposed breakout of alleged norms. The POR initiative, imo is still not enough to prove their conduct otherwise.

I think all efforts now should be geared towards broadcasting the need for personal wallets, improving the methods of P2P and providing more prominence to it, of which this forum has tried so much to do and could do more.

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The entire situation with centralized crypto exchanges can be summarized in one sentence.
"We can't live with them, we can't live without them."
The centralized crypto exchanges are the main way to buy Bitcoin/altcoins for "the average Joe". We can't have a massive crypto bull wave/increase of demand without the crypto exchanges. On the other hand, centralized crypto exchanges are becoming a pain in the ass, with all those horror stories of people getting scammed and losing their life savings. Is mass regulation the solution? Maybe... Maybe not....
A more strict regulation might bring new problems, like reducing the privacy of all users and making the entire crypto industry more dependent of the governments.

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Holding that amount of bitcoins on an exchange is absolutely insane to begin with. It's surprising how many people are not perturbed by the risks and disadvantages of keeping funds in the control of a third party.

Quote from: Hydrogen on November 28, 2022, 01:22:21 AM

As depositors take larger steps to protect their wealth and secure holdings, will it be enough to stem a tide of the high number of electronic hacks we've witnessed in 2022?

Exchanges would continue to operate as there are still lots of users who entrust them with their funds and trade on their platforms, and ifbhey keep running, there would always be hackers trying to get in. How successful they would be would depend on how much security measures exchanges adopt in the wake of the hack waves.

Quote from: Hydrogen on November 28, 2022, 01:22:21 AM

It seems that the latest trend of large withdrawals came about in 2017. Perhaps after the bitfinex and tether investigations were launched. It could take time for consumer confidence to be restored in crypto exchanges.

Hopefully the confidence is never restored.

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50,000 Bitcoin were withdrawn from Coinbase on Nov. 24 and 25, marking the third-largest withdrawal from the exchange.

A total of 100,000 Bitcoin (BTC) were withdrawn from Coinbase in the past two days, marking the third-largest BTC withdrawal in Coinbase’s history.

Two withdrawals worth 50K

The chart below shows the BTC withdrawals and deposits in Coinbase on a daily basis since the beginning of the year.

On Nov.24, 50,000 BTC were withdrawn from Coinbase. The amount equated to over $800 million at the time, which marked the second-largest BTC withdrawal from Coinbase in 2022. The next day, on Nov. 25, another 50,000 BTC withdrawal took place, which equates to over $825 million at the time of writing.

Considering that Coinbase is preferred mainly by large U.S. institutions, it can be said that they are taking advantage of the affordable prices and accumulating BTC, as the on-chain data indicates that the bottom of the bear market cycle might be near.

Third-largest withdrawal in Coinbase

The chart below represents Coinbase’s BTC deposits and withdrawals since the exchange was launched in 2014.

With the second 50,000 BTC withdrawal, Coinbase reserves lost more than $1.5 billion worth of BTC in two days, which currently marks the third-largest BTC withdrawal in Coinbase’s history.

According to the chart, the most significant withdrawal was recorded in late 2017, and the second-largest one took place in mid-2022 after the Terra (Terra) collapse.

It’s not just Coinbase

The data shows that Coinbase is not the only exchange experiencing large BTC withdrawals. The chart below demonstrates the BTC balance on all exchanges since January 2018, and a significant downfall can be seen since January 2022.

According to the data, the balance on decentralized exchanges has fallen below 12% for the first time since January 2018.

https://cryptoslate.com/bitcoin-worth-1-5b-withdrawn-from-coinbase-in-48-hours/

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It seems that we're witnessing a mass migration of funds being pulled from exchanges in the wake of the FTX incident.

Amazingly enough binance and others affiliated with FTX are still plying their wares, in the hope of attracting investor capital.

As depositors take larger steps to protect their wealth and secure holdings, will it be enough to stem a tide of the high number of electronic hacks we've witnessed in 2022?

It seems that the latest trend of large withdrawals came about in 2017. Perhaps after the bitfinex and tether investigations were launched. It could take time for consumer confidence to be restored in crypto exchanges.

Topic: Bitcoin worth $1.5B withdrawn from Coinbase in 48 hours (Read 564 times)