cryptoglobe.com
Leading cryptocurrency exchange Binance has recently unveiled its 10th proof of reserves, casting a detailed light on the assets the cryptocurrency trading platform has in its custody. The report shows users’ ETH deposits dropped 4.3% from the prior report, while USDT holdings experienced a minor 1% increase to 15.44 billion.
According to the report, Binance’s users have over 580,000 BTC on the platform, and over 3.89 million ETH tokens. The cryptocurrency industry views the periodic release of such reserve reports as a hallmark of transparency, although many have questioned the reliability of these reports.
Navigating through Binance’s most recent proof-of-reserves report, it’s possible to see that Binance is reportedly fully capitalized, with ratios of 105.09% and 105.11% for Bitcoin and Ethereum, respectively, and a ratio of 114% on its native BNB token.
Diving into other digital assets within the report, ratios vary from just over 100% up to 119% for Polygon (MATIC), with the exchange having funds to cover the deposits of all of its users, per the report.
Binance released the 10th proof of reserves. The user’s BTC asset deposit was about 588k; the user’s ETH asset deposit was 3.89 million, a decrease of 4.3% from the previous time. The USDT assets of users reached 15.44 billion, an increase of 1% from the previous time.…
— Wu Blockchain (@WuBlockchain) September 7, 2023
It’s worth noting the rpoert used a method of “Self-Verification” through the use of a Merkle Tree, a cryptographic tool enabling the consolidation of large amounts of data into a single hash, called a Merkle Root.
The Merkle Root, per the exchange, acts as a “cryptographic seal that “summarizes” all the inputted data.” This method allows users to verify specific contents within the “sealed” data to verify whether their individual holdings are backed on the exchange.
The report comes at a time in which the cryptocurrency exchange has been seeing an executive exodus, with its most recent senior executive departure being its Global Product Lead Mayur Kamat. Kamat’s departure followed that of other executives including Chief Strategy Officer Patrick Hillman, Senior Director of Investigations Matthew Price, and others.
The exchange was earlier this year sued by the U.S. Securities and Exchange Commission (SEC) in the United States, and the departures are said to be linked to the way the platform’s founder, Changpeng Zhao, responded to a US Department of Justice investigation into Binance.
Featured image via Unsplash.