Bitrue is a crypto platform created by a group of blockchain enthusiasts to enable users to trade, invest, stake, borrow, and purchase cryptocurrencies. It has one of the most advanced crypto trading platforms which focuses on speed and security. Lately, to keep the depositor’s funds secure, they launched a Bitrue Insurance wallet, the details of which we shall discuss as we proceed.
What is the Need for Bitrue Insurance Wallet
As per TRM Labs, a total of $1.7 Billion worth of cryptocurrency was hacked in 2023. Although the value of the stolen funds is 57% less than in 2022 ($4 Billion in 2022), however, it is still quite a significant amount, which is difficult to ignore.
One of the recent hacks that happened in December 2023, affected the Ledger wallet holders.
In total, they lost a whopping amount of $600,000 worth of crypto coins. Since the Ledger company had not insured the ledger wallet holder’s funds at the time the incident was reported, it decided to bear the loss and compensate the customers. It is expected to clear the dues by February 2024 as per the recent press release.
Even after installing world-class security protocols to protect the cryptocurrencies on exchanges and wallets, hackers still find out a way to intrude. This, therefore, calls for an utmost need to have the customer crypto holding insured, to compensate the users, in case of an unlikely theft event.
Details of Funds held in Bitrue Insurance Wallet
Bitrue Insurance Wallet is a multi-signature wallet that holds insurance funds. There is no definite ratio of XRP coins to the crypto coins held in Bitture wallets, shared by Bitrue, however, in general, the crypto funds stored in the insurance wallet are always more than the customer asset holding.
In case of an unforeseen event, Bitrue can easily take out funds from the insurance wallet and transfer them to the customer’s hot wallet, in the form of compensation. This covers not only the XRP coin holdings but any type of coins held in the Bitrue account.
Note: – The data and images shared in this space are taken from www.xrpscan.com
Now let’s glance through the details of the Bitrue Insurance Wallet holdings.
The Bitrue Insurance Wallet majorly holds XRP, Core, and Solo coins.
XRP Holdings
The Bitrue Insurance wallet is named as ‘Bitrue Insurance Fund’. This wallet was activated on 9th May 2020 by Bitrue’s then existing wallet, named – Bitrue (2).
As of 16th January 2024, ‘Bitrue Insurance Fund’ wallet consists of 25 million XRP coins in the wallet balance. However, if we go a bit in the past, the number of XRP coin holdings in this wallet was approximately 40 million XRPs.
Where are the remaining 15 million XRP coins?
In the year 2020, the XRP coins in the Bitture Insurance Wallet were moved from another wallet named Bitrue (2) over span of few months.
On tracing the transactions, we found that from 10th June 2020 to 25th November 2020, approximately 40 Million XRPs were deposited from the Bitture (2) wallet to the ‘Bitrue Insurance Fund’ wallet.
However, a point to note here is that, lately, on 6th July 2023, approximately 16 millions XRPs were moved out from the ‘Bitrue Insurance Fund’ wallet to another Bitrue’s wallet, named Bitrue (3) wallet.
Bitrue 3 doesn’t seem to be an insurance wallet, as several daily active transactions can be seen happening in it. It looks like an omnibus wallet and currently consists of 3.5 million XRP coins.
The following chart can be referred to witness the inward and the outward flow of funds from Bitrue (3) wallet.
It looks a little odd, where in a good percentage of XRP coins were transferred from Bitture Insurance Wallet to other Bitrue wallet but the good thing is that the XRP holdings in the Insurance wallet, is still more than the combined holdings of Bitture (1), Bitrue (2) and Bitrue (3) wallets.
Core and Solo Coin Holdings
Apart from XRPs, Bitrue Insurance Wallet holds both Core and Solo coins. The Solo and Core trustline (as shared below) indicates that this wallet participated in the recent airdrop program. As a part of the airdrop program, the wallet received approximately 198,277 Core coins and 182,909 Solo coins in the year 2022-23.
After the Solo and Core airdrop deposited its last set of tokens (11th Feb 2023) in the Bitrue Insurance Wallet, these coins were moved to Bitrue’s another wallet named as Bitture Token (1) over a period of time.
Bitture Token (1) wallet currently holds 11 million Solo coins and 5 million core coins. Bitrue Token (1) also received these tokens as a part of the airdrop program.
The current balance of the Core and Solo coins in the Bitture Insurance wallet is almost negligible. It holds 66K Core coins and only 1.75 Solo coins. Since it’s an XRP Insurance wallet, it could be a strategic decision to move the Solo and Core coins to another wallet.
The current value of Solo coins, as of 21st January 2024, held by Bitture is USD 1.65 million and that of CORE coins is USD 250k. This calculation includes all the Core and Solo coins held across various Bitrue’s wallets.
Take Away
Any crypto purchased via Bitture’s exchange is stored in a multi sign cold wallet. These wallets are offline and thereby are very secure. This makes this wallet inaccessible to the hackers because of its offline nature. However, Bitrue still went a step ahead and made sure that the customer’s fund are insured.
The Insurance Wallet feature by Bitrue makes them one of the few exchanges offering insurance for the crypto holdings in Bitture wallets. In the era when crypto hacks are on the rise, this step by Bitrue needs to be applauded.
