The amount of Bitcoin that exchanges hold officially reached an all-time high according to the newest data from Longhash. The company released the research on Jan 23 and as a surprise, cryptocurrency enthusiasts found out that Coinbase holds more than 970,000 BTC since the start of the year.
At the time of writing, Coinbase’s 970,000 Bitcoins are worth more than $8 billion. If the expansion continues as it did previously, the exchange might reach one million Bitcoin by February. The rising trend shows that Coinbase successfully managed to reach its goal of attracting institutional investors and becoming one of the leading trading platforms.
While traditional cryptocurrency investors are keen to express their support for storing one’s own crypto assets, data shows that most investors still hold their cryptocurrencies on exchanges. The popular phrase ‘Not your keys, not your coins,’ popularly celebrated on the proof-of-keys day on Jan 3, did not manage to sway most users to refrain from using exchanges.
Despite the number of exchange hacks, third-party leaks and other dangers that re-appeared in recent years, investors decided that they are still comfortable with using exchanges. While most feel safe, others call out for a trend reversal.
During a recent episode of Tales from the Crypt, a podcast hosted by Marty Bent, the host expressed his view by saying that “More individuals and institutions need to learn how to self-custody.”
Proof-of-Keys day ‘failed successfully’
Other than Coinbase who leads in terms of numbers, Longhash noted that other major crypto exchanges experienced a rise in their Bitcoin assets as well. Since the entire sector is based on decentralization and owning your own assets, without having to rely on a third-party, many were angered by the recent discovery.
The Proof-of-Keys day started on Jan 3, 2019, for the first time and urged all cryptocurrency investors to refrain from using crypto exchanges and to send their assets to private wallets. Created by Bitcoin investor Trace Mayer, the event saw an influx of investors following the instructions and creating private wallets.
One year later, the event did not manage to replicate its previous success. The latest blockchain analysis shows that exchanges continue to hold huge amounts of cryptocurrencies. Furthermore, the previously mentioned event did not cause mass withdrawals.