Binance Dispels FUD With Another Proof-Of-Reserves Report

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Binance Dispels FUD With Another Proof-Of-Reserves Report
  • Binance’s BTC liabilities are 97% collateralized by Binance’s assets, as per the report.
  • CryptoQuant  reported that Binance does not show any FTX-like behavior.
  • The author of last week’s reserves report of Binance, Mazars, will reportedly no longer take crypto client.

CryptoQuant revealed that Binance’s BTC liabilities or customer deposits are 97% collateralized by Binance’s assets. This collateralization grows 101% when the BTC loaned out to customers is included.

The analytics provider reported that Binance does not show any FTX-like behavior as the native token (BNB) is not a large share of Binance’s reserves.  Also, the report suggests that Binance has an acceptable “Clean Reserve,” of around 90%, which implies that BNB, is still a low proportion of its total assets. 

The report also said that compared to the bankrupt exchange FTX,  Binance reserves growth has been more organic and with fewer upside and downside fluctuations.

CryptoQuant noted in the report:

Some market analysts have criticized Binance’s report because the auditor made no representation regarding the appropriateness of the Agreed-Upon-Procedure and did not express their professional opinion or an assurance conclusion.

It was also on Friday that the authors of Binance’s last week reserves report, Mazars, stopped “all work for crypto clients.” . According to Bloomberg, the auditor suspended “all work for crypto clients.” The decision to say no to crypto came after the release of a controversial report about Binance last week. Following the backlash, Mazars pulled down the report from its website.

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