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Where bitcoins disappear from Bitfinex cold wallet

Where bitcoins disappear from Bitfinex cold wallet
CONTENT

  • Bitfinex cold wallet has become lighter by 57,000 BTC ($ 441 million) over the past 70 days.

  • Such a sustained reduction in the amount of funds in the cold wallet of the exchange is not common..

  • Over the past 30 days, the outflow of bitcoins from Bitfinex has been significantly higher than from other exchanges.

International consortium of news organizations developing transparency standards.

Something incomprehensible is happening on the cold wallet of the Bitfinex cryptocurrency exchange. Over the past 70 days, he “lost” by 57,000 BTC ($ 441 million).

Where bitcoins disappear from Bitfinex cold wallet

The number of bitcoins (BTC) stored in the cold wallet of the Bitfinex crypto exchange has been steadily declining. According to blockchain statistics, this indicator of the trading platform has dropped significantly.

Bitcoin outflow from Bitfinex

This trend has been noticed by some members of the crypto community. Notably, the decline in bitcoin assets on the Bitfinex cold wallet coincided with another notable development in the crypto industry. As the BeInCrypto editorial staff said earlier, the treasury of another crypto project, Tether, is now showing an unprecedented surge in activity and has released over $ 1 billion of new USDT coins in less than a month..

According to data provided by one of the cryptanalysts on Twitter, in just 70 days, the outflow of bitcoins from the Bitfinex exchange amounted to 57,000 BTC. Currently, this is equivalent to approximately $ 441 million.

Where bitcoins disappear from Bitfinex cold wallet

In December 2019, we already analyzed the situation with the volumes of cryptocurrencies stored on the accounts of various exchanges. At that time, Bitfinex held 146,000 BTC on its cold wallet, and this figure subsequently grew even more. However, now it has dropped sharply.

Bitfinex protests

Yesterday in the crypto community a lot of noise was made by a post posted on Twitter by analyst Zack Voell (@Zackvoell). Judging by the statistics he provided, over the past 30 days, the size of the outflow of funds from Bitfinex exceeded 176,000 BTC. This impressive figure has caught the attention of many.

Even the technical director of Bitfinex Paolo Ardoino hastened to join the discussion. He suggested that this data is clearly incorrect, since it does not take into account changes in addresses. He also added that the platform is involved in OTC OTC trades, but not to the same extent..

As a result, the culprit was found. It turned out to be ViewBase, an aggregator of trade data on the blockchain network, which officially apologized for technical errors in statistics by addresses in the bech32 format.

However, even the corrected figures are still very high. According to ViewBase, over the past 30 days, the outflow of bitcoins from Bitfinex amounted to 52,542 BTC ($ 407 million). For comparison, in second place, right after Bitfinex, is the Kraken exchange, but it has a similar outflow of assets over the same period amounted to only 4,892 BTC ($ 38 million).

In this regard, I again involuntarily recall the parallel with the record-breaking emission of stablecoins currently taking place on the crypto market. It would be tempting to assume that the situation with the reduction in BTC stocks also indirectly confirms the increase in demand for more reliable stablecoins, backed by US dollars, in the context of the crisis provoked by the pandemic. However, not everything is so simple. As we said earlier, a sharp surge in emissions is observed only in the UDST segment, while the dynamics of the stablecoin market as a whole remains relatively flat..

Where bitcoins disappear from Bitfinex cold wallet

Do you have any idea where and why bitcoins go from Bitfinex cold wallet? Share your opinion in the comments!

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