Investors have been very concerned lately after the bankruptcy of the cryptocurrency exchange FTX and the huge fluctuations in the markets. Binance, the world’s largest cryptocurrency exchange, called for transparency for all exchanges after the events. In this context, the giant company has also openly shared its current assets and wallet addresses in recent weeks.
To maintain the confidence of its investors, Binance also announced that it would implement the Proof of Reserves system. The giant stock market has now kept its promise of transparency and introduced its system which will initially contain only Bitcoin reserves, and other tokens and networks in the following weeks.
What is this proof of reserve?
In his post on Binance’s official website, he explained both Bitcoin reserves and what his new system is. According to the information, the proof-of-reserve system assets it holds for users shows. This proves that Binance has funds covering all user assets and some reserves.
The company says that when a user deposits one Bitcoin, Binance’s reserves increase by at least one Bitcoin to ensure customer funds are backed up, while this is due to the completely separate operation of Binance. does not include assets he adds. It is also one of the explanations that Binance also has an emergency fund for extraordinary situations.
Binance has shown us that it can make big withdrawals by sharing the assets it holds in recent weeks. However, it was not shared how many of these assets are owned by the company and how many by users. The company clarified the matter by saying that BTC wallets included in the proof-of-reserve system do not contain any proprietary funds.
Here is Binance’s BTC reserve
In the post, which includes data for November 22, the stock market’s on-chain reserves equal 582,485 BTC, and users also to 575,742 BTC (about $9.5 billion). The data also included that the reserve ratio was 101%. This shows that if everyone withdraws their Bitcoin, Binance will have enough BTC to process all withdrawals. In addition, the exchange is available through the link here. that anyone can verify their existence He also added his comments.
Binance recently added that it will share proof of reserve data including other assets in the next two weeks and plans to use third-party checkers for audits.
Source: Web Tekno