Ki Young Ju, founder of CryptoQuant, has criticized Coinbase for its wallet clustering practices, which he claims obscure the transparency of exchange reserves. Ju expressed his concerns on the X platform, highlighting that Coinbase frequently changes wallet addresses under the pretext of privacy protection. This practice, he argues, complicates the distinction between exchange and custodial account balances, hindering accurate on-chain data analysis.
In response, CryptoQuant has adapted its clustering logic to better track Bitcoin inflows and outflows, focusing only on wallets confirmed to belong to Coinbase. Ju noted that while some platforms might report higher reserve figures, this does not necessarily equate to greater accuracy.
CryptoQuant Founder Criticizes Coinbase's Wallet Practices
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