CryptoCompare drops Binance out of its Exchange Benchmark; Hacking incident cited behind the decision
CryptoCompare’s new Exchange Benchmark data has Gemini leading the pack, while Binance fell out of grace due to the hacking incident that occurred in May.
Thu, 21 Nov 2019, 05:33 am UTC
CryptoCompare, the London-based crypto data and indices provider, has now updated its cryptocurrency Exchange Benchmark. And notably absent from the top 10 list is Binance, the second biggest crypto exchange by liquidity volume, according to data provided by CoinMarketCap.
When CryptoCompare launched its services back in June, Binance ranked 7th among the list of the index provider, with Coinbase leading the pack. Now, everything has been shuffled, with Coinbase falling to third place and Gemini – which was ranked 8th during CryptoCompare’s launching – is currently wearing the crown, per the provider’s data.
From top to bottom, the 10 leading crypto exchange globally are Gemini, Paxos’ itBit, Coinbase, Kraken, Bitstamp, Liquid, OKEx, Poloniex, bitFlyer, and Bitfinex. Jeanine Hightower-Sellitto, Managing Director of Operations at Gemini, boasts that their services have always valued security and is thrilled that their efforts are being recognized.
Hacking incident still hurting Binance
“Security has been a key Gemini pillar since inception and protecting our customers’ cryptocurrency is a priority as we build the future of money. Our institutional and retail investors need a secure marketplace to buy, sell, and store their cryptocurrency, and we are pleased to be recognized for providing that to the industry,” Hightower-Sellitto said.
Meanwhile, co-founder and CEO of CryptoCompare Chris Hayter said that the reason behind Binance falling out of the top 10 list was due to a new category being added to the Benchmark. The category in question is a hacking metric that penalizes exchanges that suffered a hacking incident recently, The Block reported.
New categories added for measuring crypto exchange ranking
Since Binance took a hit in May that saw attackers pilfering 7,000 Bitcoins (BTC) – valued $45 million at the time – the Exchange Benchmark gave Binance a lower score. Aside from the hacking metrics, CryptoCompare has also added “exchange security protocols and adherence to international standards and a Negative Reports category which covers events such as flash crashes, customer information leaks, and unusual liquidation events.”
CryptoCompare’s data has been a valuable asset for crypto investors as it helps them identify which crypto exchanges are trustworthy and which ones need to update their security protocols. CoinMarketCap also launched a new metric of its own recently that measures the liquidity volume of crypto exchanges in a bid to put a stop to companies trying to inflate their trading volumes to rank higher.
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