8 exchanges hold more than 1.95 million BTC, direct calls from investors are too dangerous

Eight major bitcoin exchanges hold more than 1.95 million bitcoins ($ 14.1 billion), and cryptocurrency investor and entrepreneur Trace Mayer highlights the dangers of this massive hoarding.


As can be seen from the above figure, Coinbase holds 966,230 bitcoins and BitMEX holds 265,140 BTC. The number of bitcoins held by these two exchanges alone exceeds 60% of the total exchange holdings.

Mayer tweeted that the large amount of bitcoin held by bitcoin exchanges is dangerous for the industry. Mayer even believes that these bitcoins "like many other things just wait to be lost."

Of course, he was referring to hacking of the Bitcoin trading system and other events that caused Bitcoin to be lost forever. In 2019 alone, many well-known Bitcoin exchanges in Canada, New Zealand and South Korea closed.

Not all exchange closures are due to cybercrime activities. Take QuadrigaCX in Canada as an example. After the death of the company's CEO Gerald Cotten, his "cold wallet" became inaccessible.

If major security breaches occur in these large bitcoin exchanges, billions of dollars of bitcoin could be lost forever. Such a huge Bitcoin reserve may also provide unnecessary motivation for password hackers.

In early 2019, blockchain intelligence company CipherTrace warned that perpetrators inside cryptocurrency exchanges are becoming a pressing issue for the security of cryptocurrency transactions. Investigators reportedly suspected that some of the hacks in 2019, including the theft of Cryptopia and Bithumb, were done by insiders.

For Mayer, who advocates "no private key, no bitcoin," the danger posed by exchanges holding large amounts of bitcoin is another reason why he called on hodler to master private keys.

This cryptocurrency investor once opposed users placing their Bitcoins in third-party wallets like exchanges. In 2018, Mayer launched the Proof of Keys event to celebrate the birth of the Bitcoin genesis block.

The campaign called on Bitcoin owners to withdraw Bitcoins they hold from exchanges and transfer them to wallets where they can hold private keys. Mayer said that Proof of Keys is also an important step to recover currency sovereignty.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Blockchain User Activity Survey Ethereum Still Reigns, Who is Using Litecoin and Tron?

Cryptocurrency KOL Ignas conducted a survey on blockchain user engagement and compiled 7 important insights.


UAE adopts Cardano Blockchain to boost security in criminal investigations.

The UAE has taken the significant step of implementing Cardano's blockchain technology to enhance security in crimina...


Cardano's DeFi Ecosystem Flourishes Total Value Surges to Almost $450M as ADA Rockets 17% on Layer 1 Push!

This week, the total value locked (TVL) of Cardano-based tokens skyrocketed to more than $440 million, surpassing the...


Cardano Price Surges 8%: Here’s Why ADA Could Reach New Highs in 2024

In the past 24 hours, the Cardano price has experienced a significant increase of over 8% and is currently at $0.6202...


Is CoinDesk selling at a loss with a valuation of $125 million after being in business for ten years?

On the occasion of its tenth anniversary and after being held by DCG Group for eight years, CoinDesk, the cryptocurre...


Cardano’s Price: Falling Like a Tripped Bull

ADA's value drops as traders take profit amid steep rise and in anticipation of Federal Reserve's rate decision.