- The figure is 104.3% and 101.85% respectively
- The Ptoof of Reserves audit is designed to make the exchange more transparent
- It shows the amount of assets in the platform’s accounts and also reflects its willingness to cover any volume of withdrawal requests
- The Binance approach had previously faced criticism
The latest Proof of Reserves report from July 1 appeared on Binance’s website. Recall that in it the platform provides information on the balance of assets. The exchange implemented this concept after the bankruptcy of FTX to demonstrate its willingness to cover any volume of withdrawal requests.
Actual Figures
As of July 1, Binance controls 617,960.43 BTC and 4,241,337.2 ETH. At the same time on the platform deposited 592,457.3 and 4,164,474.9 respectively. Thus, the coverage is 104.3% for BTC and 101.85% for ETH.
The indicator for BUSD, BNB and USDT is even higher. As a reminder, Tether’s stabelcoin had previously lost its peg to the dollar, putting additional strain on service providers.
What kind of audit is this?”</nbsp;
Changpeng Zhao, Binance’s CEO, announced the introduction of the Proof of Reserves concept using the Merkle Tree model in mid-November of last year. This was supposed to reassure users and make the exchange more transparent.. The very idea of self-auditing by large CEX was called “nonsense.. Some U.S. politicians have even said it gives “the illusion of security.” In February, Binance unveiled an update to its Proof of Reserves system. The innovation is aimed at increasing efficiency and transparency. Several other products related to this system are also expected by the end of 2023.