CryptoQuant verifies Binance’s reserves, reports no ‘FTX-like’ behavior



Blockchain analytics provider CryptoQuant has released a report analyzing the recently released proof of reserves audit of the world’s largest crypto exchange, Binance.

Centralized exchanges have been cast into the spotlight over the past month following the collapse of FTX, none more so than Binance which has been scrambling to reassure customers and investors that it has sufficient reserves and is fully backed.

A report by CryptoQuant released on Dec. 14 says its analysis confirms that Binance reserves are accounted for.

Earlier this month, Binance released its proof-of-reserves report but it was criticized as being an “Agreed-Upon-Procedure” and not a full audit.

Additionally, the report didn’t address the effectiveness of internal financial controls, according to the former chief of the Securities Exchange Commission’s Office of Internet Enforcement, John Reed Stark.

But CryptoQuant has backed the findings by audit firm Mazars stating that liabilities reported by Binance are very close to its estimation of 99%.

“The report shows Binance’s BTC liabilities (customers deposits) are 97% collateralized by the exchange assets. Collateralization increases to 101% when the BTC lent to customers is accounted for.”

The analytics firm added that on-chain data suggests Binance’s ETH and stablecoin reserves are “not showing ‘FTX-like’ behavior at this point.”

“Additionally, Binance has an acceptable ‘Clean Reserve,’ which means its own token, BNB, is still a low proportion of its total assets,” it reported.

According to data provider Nansen, around 10% of Binance reserves are held in its token. Binance currently holds $60.4 billion in total assets in their publicly disclosed addresses, $6.2 billion of that total was BNB, it reported.

Related: Crypto community members discuss bank run on Binance

Binance has faced a lot of FUD (fear, uncertainty, and doubt) this week following $5 billion worth of withdrawals from the exchange on Dec. 13. Fears of a liquidity crisis and another bank run scenario started to escalate.

However, the situation stabilized the following day and CEO Changpeng Zhao reported that the outflow wasn’t even in the top five largest for the exchange.

In a Twitter Spaces event, CZ also suggested that 99% of people were not equipped for self-custody of their crypto and would likely lose it one way or another.




#CryptoQuant #verifies #Binances #reserves #reports #FTXlike #behavior

mrB

Related Posts

Why The Shiba Inu Community Is Baffled By Binance 6.4 Trillion SHIB Transfer

Shiba Inu has been making headlines recently as the release of the Shibarium upgrade was teased by Shytoshi Kusama three days ago. However, things might not be…

Sri Lanka against Bitcoin adoption, rejects Draper’s anti-corruption pitch

On a recent visit to Sri Lanka, American billionaire Tim Draper pitched the idea of adopting Bitcoin (BTC) as a legal tender to fight against the corruption…

Layoff Spree Continues: Why This Crypto-Oriented Firm Is Dismissing Some Staff Soon

Last year, many crypto firms and startups went under due to the turmoil in the space. In addition, the devastating impact of the crypto winter affected many…

Value of WisdomTree’s crypto holdings fell 61.9% in Q4

United States fund manager WisdomTree saw the value of its digital asset holdings decline sharply in the fourth quarter, reflecting the prolonged bear market in Bitcoin (BTC)…

Russia’s Biggest Bank Set To Launch Its DeFi Platform By May

Sberbank, Russia’s biggest banking establishment, is ready to have its decentralized finance (DeFi) platform operational by May. According to a report on February 3 by the Russian…

YouTuber baits MMA fighter into secretly shilling fake NFTs for $1K

Coffeezilla, a YouTuber and crypto investigator, revealed that American mixed martial artist Dillon Danis promoted a fake NFT project without disclosing that he received $1,000 for the…

Leave a Reply

Your email address will not be published. Required fields are marked *