Grayscale Head of Research Zach Pandl Says Binance Hack Could Hurt Crypto Confidence

Grayscale Head of Research Zach Pandl said Binance’s hack could temporarily weaken confidence in crypto markets and may ultimately drive stronger exchange security as total crypto market capitalization rebounded.

By Wednesday, the market’s total value had risen 2% over 24 hours to about $2.63 trillion. It had touched a weekly low of about $2.55 trillion earlier that day and remained about $100 billion below its Oct. 28 level.

Pandl pointed to U.S. crypto exchange-traded products as an example of institutional custody. “These vehicles hold their assets at state-chartered banks and qualified custodians, typically offering offline storage, multi-signature wallets, SOC attestations and insurance policies,” he said.

The hack has also prompted changes to offline key-storage systems and calls for faster alerts across the exchange industry.