Binance falls from the top due to this year’s hack

The top of the exchanges launched in June by CryptoCompare was extended to 160 platforms, compared to the 100 initially included. According to this classification, Binance is in the top 10, only 12th.

The criteria used by CryptoCompare do not take into account the volumes of transactions, because they can be modified artificially. Instead, consider criteria such as the use of custody services for cryptocurrencies of customers or insurance in case of theft.

According to this top, Gemini ranks first, followed by itBit, Coinbase, Kraken and Bitstamp.

Binance falls in the top 10 because of the hack in May

The revision of the exchange tops was done after CryptoCompare introduced the “recent hacks” criterion. In May, Binance was the victim of over 7,000 Bitcoin theft, worth more than $ 41 million at the time. The losses were covered from the SAFU insurance fund of the platform, so that the users recovered their money.

However, Binance dropped from position 8 of the June top to position 12 at present.

Qualitative criteria, not quantitative

Charles Hayter, co-founder and CEO of CryptoCompare, said the analytics firm preferred to use qualitative criteria for the classification of exchanges. The volume criterion, in his opinion, is too easy to handle through wash trading and other similar methods.

The 160 platforms are classified on the basis of eight criteria, including legality, data management, transaction monitoring and market quality. New security sections and negative reports, recently introduced, include data on flash crashes, data leaks and hacks.

The revised rankings found that only 8% of the platforms use a custody provider for users’ assets. Only 4% of exchanges offer insurance in case of hack.

The correct evaluation of the activity in the crypto industry has become a priority for many analysis companies. For example, Bitwise made a top of the trades that report real volumes, after discovering that transaction volumes were artificially inflated. Also, CoinmarketCap has recently introduced the liquidity criterion on the platforms.