Bitcoin rich list: why single addresses of cold wallets with so large amounts?

[Tfs]

What is the reason in the bitcoin rich list for all these cold "wallets" (single address) with so large funds?

If it's to prove to clients their strengh, isn't there less risk to have many addresses and tag them publicly? Anything above 500btc seems risky (hack, lost key...)

Thanks for your thoughts.

[john_egbert]

There would less risk going for multiple wallets and other options, but I do think it's easier for them to account, audit, and proof the reserves that way, even though I doubt everybody goes with a single address..

[Solosanz]

And you forget if having many wallets also increase the risk to lost coins because you have so many wallets and backup.

Currently Binance have 620K of Bitcoins, from top 100 richest address, I found there are 12 addresses belong Binance.

Imagine if Binance split their coins to wallet with maximum having 500 Bitcoins, they will have 1240 wallets. Ask yourself, if it were you, it's safer to hide 12 wallets or 1,240 wallets?

[nemesis_incarnate]

And you forget if having many wallets also increase the risk to lost coins because you have so many wallets and backup.

Currently Binance have 620K of Bitcoins, from top 100 richest address, I found there are 12 addresses belong Binance.

Imagine if Binance split their coins to wallet with maximum having 500 Bitcoins, they will have 1240 wallets. Ask yourself, if it were you, it's safer to hide 12 wallets or 1,240 wallets?

From safety view - yep, it would be better, but from the view of storing it all and taking a look at it for it be safe.. nah.

[Ambatman]

They are cold wallets. Which means unlike hot wallets they are offline and reduces the risk of hacks.
You can consider it as a very secure vault where these Big exchanges for example keep their funds.
But these are all for convenience and even POR can be done through ZKPs
This doesn't deny the fact that using such number of addresses would make it easier for gaps to exists.


Not your Keys, Not your coin.


Additional Note
Let's say one of the addresses is hacked (offline). Many eyes are on those addresses
And Bitcoin blockchain is quite transparent especially with funds if that size

[fikrett]

They are cold wallets. Which means unlike hot wallets they are offline and reduces the risk of hacks.
You can consider it as a very secure vault where these Big exchanges for example keep their funds.
But these are all for convenience and even POR can be done through ZKPs
This doesn't deny the fact that using such number of addresses would make it easier for gaps to exists.


Not your Keys, Not your coin.


Additional Note
Let's say one of the addresses is hacked (offline). Many eyes are on those addresses
And Bitcoin blockchain is quite transparent especially with funds if that size

Yep, but if the funds would be gone - they are gone, not that it matters by how many eyes are on said wallets..

[DubemIfedigbo001]

If it's to prove to clients their strengh, isn't there less risk to have many addresses and tag them publicly? Anything above 500btc seems risky (hack, lost key...)

Hacking a cold wallet is nearly impossible since it doesn't go online. Hack is more susceptible to hot wallets since you use them online and they can be exposed to social engineering. cold wallets are safe and it is safe to hold as much bitcoin as the owner wants and it continues to be safe as long as the owners do not mistakenly misplace the keys or seed phrases of those wallets.

Cold wallets are good choices for decentralization and increased security of funds, it is a good choice for long-term holding of bitcoin.

[IIrik11]

few of them could be lost keys as well

i lost a key to a wallet that contained 0.001 btc

[henry_of_skalitz]

If it's to prove to clients their strengh, isn't there less risk to have many addresses and tag them publicly? Anything above 500btc seems risky (hack, lost key...)

Hacking a cold wallet is nearly impossible since it doesn't go online. Hack is more susceptible to hot wallets since you use them online and they can be exposed to social engineering. cold wallets are safe and it is safe to hold as much bitcoin as the owner wants and it continues to be safe as long as the owners do not mistakenly misplace the keys or seed phrases of those wallets.

Cold wallets are good choices for decentralization and increased security of funds, it is a good choice for long-term holding of bitcoin.

Do you think it's still a good choice for giants to have only around, say 10-15 cold wallets?.. I would still have that number bigger, imo.

[tbct_mt2]

What is the reason in the bitcoin rich list for all these cold "wallets" (single address) with so large funds?

If it's to prove to clients their strengh, isn't there less risk to have many addresses and tag them publicly? Anything above 500btc seems risky (hack, lost key...)

Bitcoin Rich List
https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

Bitcoin transactions are traceable and you can store your bitcoin in hot or cold wallets but if there were transactions in and out those wallets, there are people individually or companies with on chain analysis skills can do their works. Labels in Bitcoin Rich List are works from communites, and companies or individuals don't want to show their addresses publicly.

I see you misunderstood between wallets and addresses.
https://learnmeabitcoin.com/beginners/wallets/

[Dareo]

There are many of such big cold wallets of exchanges or custodial services that possess funds of a large number of users. They hold very big amounts in one addresses primarily to have operational convenience and transparency, where people can check reserves. The many addresses may lower the level of risk though it becomes more difficult to track down publicly and it will also be complex to manage.

[MaxLevCoin]

Many big cold wallets belong to exchanges or custodians. They keep large amounts in single addresses for easier management and transparency but yes, it's riskier than splitting them.