Filfox New Feature: Monitoring Leading Exchanges’ FIL Addresses

Near 3 Million FIL Tokens Flowed to Exchange Addresses

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FIL Circulating Volume

Since the launch of the Filecoin mainnet, the market has been closely following large FIL transactions to gauge the total circulation.

FIL has a total issuance of 2 billion. Because the Filecoin mainnet is switched from its Space Race(SR) network, there were mainnet tokens transferred from test coins, SR reward, and block reward, which all makes it difficult to know the exact token circulation every day.

The real circulating amount and transfer volume to exchanges are critical for price trends. The market is eager to know. That’s why Filfox not only monitors real-time circulating supply but also adds exchange addresses monitoring.

Filecoin Total Pledge Collateral and Circulating Supply 4:24 pm EST, 10/29/2020 Filfox.info

According to the latest data from Filfox.info, there is currently nearly 14 million FIL locked as Pledge Collateral and ~19 million FIL circulating. The circulating tokens come from investor and team vesting and SR rewards.

Total Transfer Volume to Exchanges

Filfox.info monitors FIL addresses of leading exchanges. Based on data mining of those exchanges, at least 2.81 million FIL has been transferred to several top exchanges, accounting for about 14.8% of current total circulation.

Different Exchanges’ FIL Balances

As can be seen from the diagram, among the exchange addresses monitored by Filfox.info, Huobi and Binance have the most FIL balances, 2.228 million and 528,000 FIL respectively, accounting for 11.8% and 2.8% of the current circulation.

It seems that Huobi is the main exchange for FIL trading. This is consistent with CoinGecko.

CoinGecko.

What to monitor: exchange Deposit Address, Hot Wallet and Cold Wallet

Our address tracking system categories, exchange wallet addresses, and uses proprietary algorithms for data mining. Filfox is the first product providing FIL exchange balance monitoring.

Generally speaking, there are three exchange wallet addresses: ordinary deposit addresses, hot wallet addresses, and cold wallet addresses, each with different functions.

01. Deposit Address

This type of address accounts for more than 99.9% of the exchange addresses. These are the deposit address of each user. Users can deposit cryptocurrencies outside the exchange into the exchange through these addresses. After that, the money in these addresses will go in two directions: being transferred out of the exchange or being pooled to the exchange’s hot wallet.

02. Hot Wallet

The hot wallet refers to the exchange’s wallet that is connected to the internet. Its main function is to transfer coins between the deposit address and the cold wallet address. In other words, there will be no direct transfer between the deposit addresses and cold wallets. The withdrawal by the users is transferred from the hot wallet.

03. Cold Wallet

The cold wallet is an offline wallet of the exchange. It is much more secure than the hot wallet. Therefore, the exchange will store most of the crypto assets in the cold wallet. The cold wallet only transfer funds with the hot wallet, and the total amount of a single transaction is relatively large. Another feature of the cold wallet is that the total number of transactions of the address is small, and the address's balance is relatively large.

Filfox.info Data Mining: How Do We Do it and Our Findings

The proprietary data mining algorithm developed by Filfox.info includes vertical mining, forward mining, and backward mining.

Vertical mining means to monitor the receiving address and other receiving addresses in the same transaction; forward mining means to monitor the receiving address and find out the feature address from the initiating side; backward mining is to monitor the initiating address and find out the feature address of the receiving side.

By analyzing the exchange wallet addresses, Filfox found out that the exchanges currently mostly use a hot wallet plus deposit addresses. There are no obvious traces of cold wallets.

According to the Filecoin economic model, 400 million FIL tokens have been allocated to the Filecoin Foundation and Protocol Labs. Although this part of FIL is unlocked every day, Filfox has not monitored any transfer of this part of FIL. We believe the 20% of the FIL belongs to the Protocol Labs, and the Filecoin Foundation has not been moved. The previous market-making funds transferred to exchanges by the Filecoin team were from the unsold 50 million reserved in 2017.

That’s all about our current findings of FIL exchange balances.

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6Block is a mining pools focusing on Handshake and Filecoin.