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Binance, the king of cryptocurrency exchanges in terms of volume, has released its latest reserve proof. So, what was the change in assets? In order to alleviate the concerns of their customers following the collapse of FTX, crypto exchanges started publishing reserve proof reports. Binance was among the leading exchanges in this regard.
Are Crypto Exchanges Reliable?
The bankruptcy of FTX, the second largest cryptocurrency exchange in the last quarter of last year, caused a great uproar. Even worse, it was revealed that customers’ assets were being used without permission. FTX, which showed the crypto assets sent to the exchange to its customers through the website interface, did not actually hold these assets in their wallets. Instead, they were making high-risk investments through Alameda with customer assets and spending these assets for their luxurious lifestyles.
SBF, who is now trying to clear himself in court, admitted about a year ago that customers sometimes bought and sold synthetic cryptocurrencies on the exchange. After all these incidents, exchanges tried to prove that their customers’ crypto assets were in place by publishing reserve proofs.
Reserve proofs confirming the presence of customers’ balances were an important step. However, due to the lack of detailed financial statement examinations that would reveal the risks and debts of the exchanges, concerns have not been completely eliminated.
Binance Reserve Proof
Today, Binance has published its 11th reserve proof. According to the snapshot taken on October 1st, investors’ BTC holdings increased by 0.12% to reach 588 BTC. ETH holdings decreased by 1.6% to 3.83 million Ether. USDT balance decreased by 0.8% to 15.31 billion dollars. The decrease in USDT balance may be related to the incentives for the use of alternative stablecoins.
The above visual shows that customer assets are held in wallets in a 1:1 ratio according to the latest reserve proof. This ratio is 107.29% for ETH and 104.6% for BTC.
