CryptoQuant verifies Binance's reserves, reports no ‘FTX-like’ behavior

Blockchain analytics supplier CryptoQuant has released a study analyzing the precocious released impervious of reserves audit of the world’s largest crypto exchange, Binance.

Centralized exchanges person been formed into the spotlight implicit the past period pursuing the illness of FTX, nary much truthful than Binance which has been scrambling to reassure customers and investors that it has capable reserves and is afloat backed.

A report by CryptoQuant released connected Dec. 14 says its investigation confirms that Binance reserves are accounted for.

Earlier this month, Binance released its proof-of-reserves study but it was criticized arsenic being an “Agreed-Upon-Procedure” and not a afloat audit.

Additionally, the study didn’t code the effectiveness of interior fiscal controls, according to the erstwhile main of the Securities Exchange Commission's Office of Internet Enforcement, John Reed Stark.

But CryptoQuant has backed the findings by audit steadfast Mazars stating that liabilities reported by Binance are precise adjacent to its estimation of 99%.

“The study shows Binance’s BTC liabilities (customers deposits) are 97% collateralized by the speech assets. Collateralization increases to 101% erstwhile the BTC lent to customers is accounted for.”— CryptoQuant.com (@cryptoquant_com) December 15, 2022

The analytics steadfast added that on-chain information suggests Binance’s ETH and stablecoin reserves are “not showing 'FTX-like' behaviour astatine this point.”

“Additionally, Binance has an acceptable ‘Clean Reserve,’ which means its ain token, BNB, is inactive a debased proportionality of its full assets,” it reported.

According to information provider Nansen, astir 10% of Binance reserves are held successful its token. Binance presently holds $60.4 cardinal successful full assets successful their publically disclosed addresses, $6.2 cardinal of that full was BNB, it reported.

Related: Crypto assemblage members sermon slope tally connected Binance

Binance has faced a batch of FUD (fear, uncertainty, and doubt) this week pursuing $5 cardinal worthy of withdrawals from the speech connected Dec. 13. Fears of a liquidity situation and different slope tally script started to escalate.

However, the concern stabilized the pursuing time and CEO Changpeng Zhao reported that the outflow wasn’t adjacent successful the apical 5 largest for the exchange.

In a Twitter Spaces event, CZ also suggested that 99% of radical were not equipped for self-custody of their crypto and would apt suffer it 1 mode oregon another.