Binance Reserves Are Not Showing ‘FTX-like’ Behavior: CryptoQuant

• CryptoQuant released a comparison of Binance’s Proof of Reserve (PoR) report.
• The comparison was done after the Mazars audit firm released the PoR report of Binance last week.
• Binance’s BTC liabilities are 97% collateralized by the exchange assets.

Amidst the volatile crypto market, CryptoQuant, an on-chain analysis organization, released a comparison of Binance’s Proof of Reserve (PoR) report. The comparison was done after the Mazars audit firm released the PoR report of Binance last week.

As stated in the Crypto Quant’s report, Binance disclosed its BTC PoR report conducted by the external auditor. The report showed that Binance’s BTC liabilities (customers deposits) are 97% collateralized by the exchange assets. The collateralization increased to 101% when the BTC lent to customers is accounted for.

To assess the data, the on-chain analysis company claimed that they compared Binance’s liabilities expressed in the report to CryptoQuant’s on-chain metric of Binance’s BTC Reserve data, which is based on their estimate of Binance’s customers’ deposits.

Furthermore, CryptoQuant claimed that Binance’s ETH and Stablecoin reserves are not showing “FTX-like” behavior. Through additional analyses of the data, Binance has an acceptable “Clean Reserve,” which means BNB is still a low proportion of its total assets.

After the release of Binance’s PoR report conducted by the Mazars audit firm, market analysts criticized the report. The analysts pinpointed that the auditor made no representation regarding the appropriateness of the Agreed-Upon-Procedure and did not express their professional opinion or an assurance conclusion.

Concurrently, CryptoQuant claimed that their analysis is not a favorable opinion of Binance. Throwing light on the on-chain analysis, CryptoQuant explained that the amount of BTC, Binance claims to hold as liabilities in the PoR report “makes sense” based on the data.