Binance Falls From Top 10 in CryptoCompare’s New Crypto Exchange Rankings

Published at: Nov. 20, 2019

London-based crypto data provider CryptoCompare has updated its crypto Exchange Benchmark, removing Binance cryptocurrency exchange from the list of the top 10 exchanges. Binance, the second biggest crypto exchange by daily trade volume to date, is not included in the CryptoCompare’s list as the rankings do not rely on aggregate volume data in its analysis, the firm said in a press release to Cointelegraph on Nov. 19.

In order, the top 10 crypto exchanges in CryptoCompare’s second Exchange Benchmark are: Gemini, Paxos’ itBit, Coinbase, Kraken, Bitstamp, Liquid, OKEx, Poloniex, bitFlyer and Bitfinex.

Binance was ranked seventh in the first Exchange Benchmark

CryptoCompare’s first Exchange Benchmark was published in mid-June 2019 with the purpose of ranking around 100 crypto spot exchanges worldwide.

At the time, the benchmark ranked Binance as the seventh top exchange, while Gemini, the top exchange of the just-issued Exchange Benchmark, followed Binance in eighth place. Meanwhile, United States-based Coinbase led the list.

CryptoCompare removed Binance due to security concerns related to the hack in May

Binance is now ranked in 12th place on CryptoCompare’s list. Charles Hayter, co-founder and CEO at CryptoCompare, told industry news outlet The Block that Binance dropped out from the top 10 list following the hack of the exchange in May 2019. Hayter reportedly said:

“Our new Benchmark includes a category for recent hacks for which we penalize exchanges. As Binance was recently hacked, it is marked down in the security category."

On May 7, Binance experienced a major security breach, in which hackers managed to steal more than 7,000 Bitcoin (BTC) worth around $42 million at the time of the hack. Binance subsequently noted that it will use its emergence insurance fund, Secure Asset Fund for Users, to cover the incident.

New Exchange Benchmark adds 60 new spot exchanges

In a press release, CryptoCompare said that the new rankings now include over 160 active spot exchanges. In its Q3 2019 Exchange Benchmark report, CryptoCompare found that only 8% of analyzed exchanges use a custody provider to store user assets, while only 4% of exchanges offer third-party insurance in the event of a hack.

The company also pointed out an increase in margin trading offerings since June, noting that exchanges offering such trading now account for 62% of total volume, against 52% in June.

As reported, CryptoCompare launched its Exchange Benchmark in response to a study claiming that 95% of volume on unregulated exchanges is fake. In mid-November, major crypto data site CoinMarketCap launched a new metric comparing exchanges and token pairs based on liquidity. Hayter reportedly said that liquidity alone is an "insufficient" metric and that exchanges need to be rated holistically. He told The Block:

"We have always incorporated a liquidity metric in our scoring system for each exchange, using depth and spreads across top markets."

Tags
Blockchain
Cryptocurrency Exchange
Cryptocurrencies
Hacks
Binance
Coinbase
United Kingdom
Gemini
Security
Related Posts
Coinbase Fails to Top CryptoCompare’s Exchange Rankings due to 2019 Flash Crash
Coinbase, one of the most popular platforms in the United States, missed out on the number one spot in a ranking of crypto exchanges due to a 2019 Bitcoin (BTC) price glitch. The major U.S. crypto exchange and wallet service did not get to the top of the latest CryptoCompare’s crypto Exchange Benchmark rankings because its institutional trading arm Coinbase Pro experienced a major Bitcoin price flash crash in October 2019. CryptoCompare confirmed to Cointelegraph that the glitch was the primary reason behind the five-point drop for Coinbase in the “Negative Reports” section of rankings. “Coinbase would be top without …
Blockchain / Feb. 13, 2020
How wallet platforms are taking on exchanges
One of the biggest trends in recent months has seen Bitcoin flow out of exchanges into wallets. Generally, this is interpreted as a bullish sign — indicating that investors are optimistic about further growth in cryptocurrency prices. But delve deeper, and there’s more to this than meets the eye. The crypto industry has grown immeasurably over recent years — making stars out of a number of exchanges. Platforms such as Binance and Coinbase now handle billions of dollars in trading volumes every day. With this come concerns that centralization is creeping in — and fears that major exchanges are becoming …
Blockchain / March 4, 2021
If Blockchain Is the Door to the Future of Finance, Liquidity Is the Key
In the cryptocurrency industry, liquidity is king. But how we measure and perceive liquidity varies greatly. Amid uncertain times and volatile market conditions, many traders are revising their trading strategies to consider every facet of their portfolio. This includes how they evaluate the liquidity of an asset or an exchange altogether. While it is evident that trading volume can be easily manipulated, we’ve nonetheless been conditioned to look to it as a way to measure liquidity and — by extension — the health of markets and exchanges. Types of liquidity At its core, liquidity can be divided into three categories: …
Technology / May 13, 2020
Barclays May Be Ending Work With Coinbase, Transactions in GBP to Slow
British banking giant Barclays has reportedly cut ties with United States crypto exchange Coinbase. As Coindesk reported on Aug. 13, unnamed industry sources have said that Barclays will no longer be banking for Coinbase, severing a relationship that began when Coinbase opened a Barclays account in March 2018. The news is expected to hit the crypto community hard, as, in addition to linking a major crypto exchange with a heavy hitter among the traditional banking establishment, the break may end Coinbase users’ access to the United Kingdom’s Faster Payments Scheme and slow the exchange of cryptocurrencies for British pounds sterling …
Adoption / Aug. 14, 2019
Crypto recruitment execs reveal the safest jobs amid layoff season
Despite a wave of heavy crypto layoffs to start the new year, employees in technical and engineering roles, as well as senior management, will likely continue to see “strong demand” for their skills, recruitment professionals believe. It’s been a tough first few weeks of 2023 for crypto businesses and their staff. Within just two weeks, the market has already seen more than 1,600 crypto-related job cuts as a result of continued market volatility and uncertainty. However, not all departments have seen the same level of cuts. SAFU: Senior-level tech and engineering Rob Paone, founder and CEO of crypto recruitment firm …
Blockchain / Jan. 18, 2023