An analysis of five major cryptocurrency exchanges has shown varying levels of reserve transparency and compliance with reporting standards based on insights from CryptoQuant.
Binance and OKX Set Industry Benchmark
Binance currently holds the top position, consistently maintaining a reserve ratio above 100%. The exchange issues reports on reserves monthly, reinforcing user trust. OKX follows closely, also sustaining a reserve ratio exceeding 100%, although it typically lags slightly behind Binance.
Bybit and Kraken Show Promise but Lag in Frequency
Bybit ranks third with reserve ratios ranging from 105% to 115%. The platform has recently increased its reporting frequency from bi-monthly to monthly, which is seen as a positive step. Kraken maintains full reserves but has only released four reserve reports since November 2022, signaling the need for more frequent updates.
Coinbase Faces Scrutiny for Zero Transparency
Coinbase, one of the largest crypto exchanges in the U.S., ranks last. The platform has yet to publish any reserve reports, raising significant concerns given its market size and public listing.
CryptoQuant concludes that Binance and OKX are leading the way in industry transparency and accountability. Bybit and Kraken show positive developments, but still have room for improvement. In contrast, Coinbase's complete absence from the reserve reporting landscape raises considerable alarms.
