CryptoQuant confirms Binance reserves are accounted for
- Binance has faced a FUD storm in the past few days about its reserves.
- Binance has also been in the spotlight amid the ongoing FTX collapse hearing.
- Blockchain analytics provider CryptoQuant has verified Binance reserves in its new audit report.
Blockchain analytics provider CryptoQuant has verified Binance’s proof of reserve in its recently released audit report analyzing the recently released proof-of-reserves by Binance. This settles the FUD storm that has been circulating within the internet especially following the recent surge in withdrawals.
Over the past few days, Binance has seen crypto assets worth as much as $3 billion leave the exchange in a span of 24 hours making investors worry about the future of the exchange seeing that FTX’s troubles started in a similar manner.
Binance scrambling to reassure customers
Amid the heightened customer worries after reports of increased outflows from Binance, the crypto exchange has been scrambling to reassure its customers and investors that it has sufficient reserves that are fully backed.
Earlier this month, Binance released a proof-of-reserves report for transparency purposes but it ended up being criticized for not being a full audit but rather an “agreed-upon procedure.” The tussle led to some customers withdrawing their crypto assets; something that sent shock waves throughout the crypto space since FTX’s fall started in a similar manner.
However according to CryptoQuant, the liabilities that Binance reports are close to audit firm Mazars’ estimation of 99%.CryptoQuant notes:
“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.”
CryptoQuant also added that Binance’s stablecoin and Ether reserves don’t show an “FTX-like” behaviour. The firm reported:
“Additionally, Binance has an acceptable ‘Clean Reserve,’ which means its own token, BNB, is still a low proportion of its total assets.”
According to data provider Nansen, only about 10% (Approx. $6.2 billion) of Binance’s reserves ($60.2 billion) are held in its native token BNB.