Bernstein identifies two main problems of Binance
The broker’s report mentions the withdrawal of $6 billion from the platform, which did not affect its operation
03.01.2023 - 15:15
923
2 min
0
Binance is solvent, liquid and stable, which is evident in the exchange’s more than $55 billion in verifiable cold wallet addresses, Bernstein said in a research report Monday.
The crypto exchange can also “pass the test of withdrawals” as it did when $6 billion of customer funds were withdrawn on Dec. 13, the report said.
“Binance’s undisputed market leadership has not been an accident – it has a long history of doing right by the customer,” the report added, noting that the exchange has made customers whole through hacks and regulatory challenges. The exchange now accounts for about 75% of the global crypto trading market.
Bernstein says Binance faces two challenges. First, it has an offshore holding company based out of the Cayman Islands, which means it must take “progressive steps moving towards an on-shore structure,” even at the cost of short-term business.
Second, following the demise of crypto exchange FTX, it is now a “virtual monopoly in global crypto trading.” While it can't do much about its monopolistic position, competition may now emerge from decentralized exchanges, as traders could diversify their activities toward self-custody and decentralized trading platforms.
Binance will continue to seek licenses across multiple jurisdictions. It has obtained licenses from 14 countries so far, including France, Italy, Spain and Canada, the note added.
This material is taken from the website coindesk.com.
Useful material?
Telegram 
Twitter Incidents
In a single week, hackers went after PHP websites, the Railway cloud platform and a medical company, and experts started talking about a crisis that is only just beginning.
Oct 28, 2026
Incidents
In 104 minutes, the attacker emptied 1,404 addresses before validators halted the network and froze almost all of the loot.
Oct 19, 2026
Incidents
Developers warned of potential risks to bridges across the ecosystem and asked exchanges for assistance.
Jun 22, 2026
Incidents
The defendant helped move funds stolen through investment scams and earned at least $4 million for his role in the operation.
Jun 10, 2026
Incidents
The company is linking the incident to a compromised private key on a service wallet, rather than a smart contract exploit
May 22, 2026
Incidents
Following the incident, the project temporarily halted trading operations and node activity.
May 15, 2026
Cryptocurrency rates
-
Bitcoin
$79 827
BTC
-1.32%
-
Ethereum
$2 308.49
ETH
-1.9%
-
BNB Smart Chain
$746.68
BSC
+0.13%
-
Ripple
$1.42
XRP
+1.04%
-
TRON
$0.330527
TRX
-0.06%
-
Zcash
$1 239.16
ZEC
-6.21%
-
Dogecoin
$0.077803
DOGE
-2.19%
-
Cardano
$0.218269
ADA
+2.11%
-
Stellar XLM
$0.184461
XLM
+2.83%
-
Bitcoin Cash
$278.85
BCH
-6.13%