Leading exchange Binance is to be trusted less, a rating site report from CryptoCompare has said after the exchange fell out of the top ten list.
In their second ever report, CryptoCompare found real issue with recent developments at Binance and thus their rating dropped. Pointing to recent security breaches, CryptoCompare, took a dim view and sent Binance down the rankings.
Gemini finished on top of the list with itBit second and Coinbase third. OkEx moved highest up the ranking with 6 places gained, taking their Malta neighbors Binance’s spot. See the full November top ten list below:
Exchanges like Bitfinex who have not been without their own trouble entered the top ten. However, the true top performers were Gemini and OkEx who improved massively in this quarter.
How Binance lost the faith
So, what might have put Binance, in this lowered position? According to CryptoCompare’s co-founder and CEO, Charles Haynter when speaking to The Block the move decision came down to security. Haytner explained that the, “new Benchmark includes a category for recent hacks for which we penalize exchanges”, meaning Binance, “is marked down in the security category.”
It is not hard to see why CryptoCompare came to this decision. The Binance hack of May this year was the sixth biggest in history and saw 7,070 bitcoin ($41.2 million at the time) taken.
Alongside this devastating hack, the company was a victim of a KYC leak which saw their customer’s personal details leaked online. A hacker named Banatov Planton tried to negotiate with the exchange for a job to stop the important information being leaked further. .
Although not explicitly mentioned in the report, there has been talk of wash trading with regards to Binance. The sudden Bitcoin price movements revealed some interesting statistics with signs of potential wash trading. Binance JEX has also had some K line issues on their Bitcoin perpetual swap candlestick.
The exchange Is also facing being barred from China too. Binance initially began life in China but now they have been banned from Weibo, China’s answer to Twitter, due to their support for the Hong Kong protestors. Binance was also scolded by AliPay for releasing information suggesting you could use crypto with them and WeChat.
Hacks, leaking of personal information and wash trading issues have made this a year to forget for Binance in many ways. The Malta-based exchange must sort their security issues and other questionable features to regain the trust of the public and industry.
Can Binance turn their security woes around and assure their customers? Are we seeing a change of the guard in terms of exchanges? Let us know below.