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Exchanges pledged $2.5B to user protection funds amid FTX’s collapse: Report

Published 06/15/2023, 06:00 AM
Updated 06/15/2023, 08:00 AM
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According to a new report published by blockchain analytics firm Nansen on June 14, most reputable cryptocurrency exchanges adopted user protection funds amid the collapse of FTX. Together, exchanges such as Binance, OKX and Bitget have more than $2 billion combined in nominal fiat protection funds. Meanwhile, Huobi’s insurance fund is collateralized by 20,000 Bitcoin (BTC), while Coinbase (NASDAQ:COIN) grants up to 150,000 British pounds ($189,140) worth of insurance to U.K. customers’ accounts. The Nansen researchers wrote:

Among other items, Binance has maintained the top spot with regard to both spot and derivatives trading volume. In the spot sector, the exchange had an overall market share of 69% and a monthly trading volume of $209.5 billion in May. In the spot markets, Kraken’s trading volume increased the most, gaining 14.35% to reach $18.9 billion in the six months following FTX’s collapse, compared with the preceding six months. Meanwhile, Bitfinex’s trading volume fell the most, dropping 59.5% to $5 billion in the same period.

Although many exchanges have user protection funds, not all have disclosed their on-chain addresses. Source: Nansen

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