Further proof of Binance’s solidity? The platform has just completed the audit of its reserves, and the expertise reveals that the reserves in Bitcoin (BTC) of Binance are slightly larger than what had been announced. Something to reassure users who feared another scenario at the FTX.
Binance Bitcoin Reserves Reviewed
The major auditing firm Mazars was responsible for check Binance bitcoin reserves. In her report, she confirms that the number of BTC held by the platform is higher than what had been announced: it is 101% over-collateralized. There are thus 575,742 bitcoins on Binance, or a sum of 9.6 billion dollars at the current price.
The platform has also confirmed that it will carry out further audits. for other assets held, including Ether (ETH). As Mazars points out, this is indeed a review of Binance’s BTC reserves, not an overall review:
“We do not express an assurance opinion or conclusion. If we had carried out additional procedures, we could have noted other elements which would then have been reported.»
👉 To go further – How to secure and store your cryptocurrencies?
The reference platform to buy and trade more than 600 cryptos
10% off your fees with code ZWUFE2S1 🔥
The excess of Binance reserves
As a reminder, Binance has already published “reserve evidence” a few weeks ago, in order to reassure users scalded by the fall of FTX. The platform claims that it has substantial reserves: more than $63 billion worth of cryptocurrencies according to data shared recently by Nansen:
This table shows that Binance has 3 times the crypto holdings of the other 11 exchanges combined 👀
Binance $63.3B
OKX $6.2B
Cryptocom $3.41B
$3.12B
KuCoin $2.45B
And othersExchange balances are updated hourly here ➡️ https://t.co/2OSHH7Ngf7 pic.twitter.com/U9sMjp3CL3
— Nansen 🧭 (@nansen_ai) December 6, 2022
Binance’s reserves seem excessive: they correspond triple the reserves of the other 11 listed exchanges. This shows the substantial weight of the company, which has probably reinforced its hegemony since the FTX affair.
Still, the induced panic allowed more transparency for other major players. The latter have published proof of reserves in recent weeks, in order to prove that they do indeed have the funds necessary to respond to their clients’ transactions. As a reminder, FTX had discreetly diverted client funds to its sister company, Alameda Research, which had precipitated the giant’s downfall.
👉 To read on the same subject – Sam Bankman-Fried reveals that FTX would have sold assets that did not exist to its customers
Join Experts and a Premium Community
PRO
Invest in your crypto knowledge for the next bullrun
Source: Mazars
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
2227 items
