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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Sep 08, 2023 10:51 UTC
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Binance’s Latest Proof-of-Reserve Report Under Scrutiny for Transparency
Binance's 10th PoR report shows that it holds 196.1 billion USD in crypto assets.
The report has raised concerns about the accuracy of the report, as it does not include all of Binance's liabilities.
Binance is working to improve the report by adding more information and making it easier to understand.
Binance Exchange, the world’s largest cryptocurrency exchange, has released its 10th Proof-of-Reserve (PoR) report, which provides a detailed breakdown of its crypto holdings. The report has raised concerns among some industry analysts about Binance’s transparency.
Analysising the PoR Data
figures. The combined XRP user base is an astounding 2,587,670,373.002 units. Even more astonishing, Binance currently possesses a staggering 2,686,407,725.227 units of XRP. What’s particularly noteworthy is the XRP reserve ratio, standing robustly at 103.82%. This statistic signifies that Binance holds a surplus of XRP, beyond what’s immediately necessary to meet user demands.
This data provides invaluable insights into Binance’s reserves and its readiness to cater to user requirements.
Also Read: Binance CEO CZ Dispels FUD, Affirms No Liquidity Concerns
Transparency Concerns Arise
Despite Binance’s proactive stance on sharing reservation reports, a practice that gained traction after issues at the FTX derivatives exchange, some industry experts remain skeptical about the level of transparency.
Travis Kling, co-founder of Ikigai Funds, has raised concerns about Binance’s honesty, suggesting that not all accounts should be counted as money in use. He argues that the exchange rate doesn’t directly control all funds. Kling highlights the absence of proof of customer debt in Binance’s report, a surprising omission in the industry, especially considering Binance’s legal battle with the U.S. SEC.
Related: Binance 10th Proof-of-Reserves Report: BTC, ETH, USDT Balances Revealed
Financial Stability Remains a Priority
However, it’s noteworthy that Binance, alongside exchanges like OKX, does provide these reports and maintains reserves at 105% for Bitcoin and Ethereum. This demonstrates a dedication to ensuring financial stability.
These trust issues arise in the midst of Binance’s ongoing legal battles with the SEC, pointing towards a potentially challenging road ahead for the exchange.
What would you like to see Binance do to improve its transparency and accountability?
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