As a seasoned researcher who has witnessed the tumultuous journey of the cryptocurrency industry, I can confidently say that Binance’s commitment to transparency through its Proof-of-Reserve reports is commendable. The exchange’s consistent efforts to uphold integrity and ensure user trust are truly laudable.
The popular cryptocurrency exchange Binance publishes a Proof-of-Reserve report every time, emphasizing transparency and honesty. This report typically displays the assets held by users on their platform. As stated by Binance, they keep each user’s assets in an equivalent amount plus additional reserves. Furthermore, they declare that they have no outstanding debts and also maintain a special fund (SAFU fund) as a precaution for unforeseen situations.
Binance Asset’s Reserve Ratio Remains High
22nd Report on PoR reveals that approximately 605,000 Bitcoins (BTC) were being used, representing a 1.27% decrease compared to the previous period. Concurrently, users hold about 4.486 million Ethereum (ETH), marking a decline of 4.58%, which translates to around 225,000 ETH less than before.
Meanwhile, there was a 4.34% rise in user-held Tether (USDT), reaching a total of 22.11 billion units, an increase of 919 million USDT. The Solana reserve grew by 32 million SOL, while the customer net balance for Dogecoin stood at 13.12 billion DOGE. It’s important to note that this data was captured on September 1, 2024. The volatility and market cap for both assets over the last 24 hours are as follows:
Regarding their reserve ratios, Binance holds a BTC asset reserve ratio of 106.84%, ETH assets at 103.68%, Dogecoin (DOGE) at 100.09%, USDT at 112.82%, and Solana (SOL) assets at 102.67%. For other digital currencies they feature, Binance typically keeps an average reserve ratio of 100% throughout.
In response to the abrupt closure of the Bahamian-based cryptocurrency exchange FTX in 2022, Binance introduced the Proof of Reserves (PoR) system using Bitcoin. In the following year, they established a specific website for this process and started extending it to various other digital assets.
FTX’s Collapse Mandates PoR Publication
Due to an overwhelming surge in demand from users and investors, FTX encountered a severe liquidity issue, causing them to halt withdrawal processing. This predicament eventually led to the company’s collapse, resulting in approximately 1 million creditors incurring losses totaling billions of dollars. The incident left users on other cryptocurrency platforms and exchanges uneasy and questioning their chosen platforms’ reliability.
By implementing a Proof-of-Reserve (PoR) system, these cryptocurrency companies and initiatives were able to reassure their users about the safety of their funds. Over a two-year period, Binance has consistently improved its platform to ensure a seamless user experience and provided all necessary information for successful crypto investing. Other exchanges are now adopting similar strategies as Binance.
Towards the close of Q1 in 2024, OKX released its 17th Proof-of-Reserves (PoR) statement. This document indicated that the platform held a historic Bitcoin reserve at 102%, Ethereum at 104%, USDT at 106%, and USD at 110%. Moreover, the report underscored that OKX maintains more assets than required for redemption, ensuring a 1:1 correlation between users’ assets and those held on the platform.
In May, Gate.io – a prominent crypto exchange and pioneer in Web3 innovation – released their Proof of Reserves (PoR) report. The report demonstrated a reserve-to-deposit ratio of 115.34% and a total reserve value of approximately $6.49 billion at the conclusion. This report encompassed around 209 digital assets, representing an expansion of 20 compared to the last report. Notably, Binance consistently grows its asset size, reinforcing its dominance as the leading exchange in the market.
Read More
Sorry. No data so far.
2024-09-09 17:37