Cryptocurrency Exchange Binance Conducts 12th Audit of Reserves
Cryptocurrency exchange Binance has completed its twelfth audit of the reserves held on the platform. The audit, published on January 1, reveals that Binance controls 597,658.074 Bitcoins (BTC) and 4,265,238.882 Ethereum (ETH). Additionally, client accounts on the exchange hold 575,852.891 BTC and 4,002,782.994 ETH. This means that client funds in Bitcoin and Ethereum are secured by 103.79% and 106.56%, respectively.
Client Assets and Stablecoins
The audit report also states that users hold nearly 32 million BNB tokens, while client assets in USDT stablecoins amount to 16.85 billion, backed by 123.20%. It is worth noting that the client balance in BUSD is secured by 167.91%. However, Binance has announced that it will stop supporting BUSD in 2024 due to a decrease in its capitalization to $1.89 billion in November 2023.
Proof of Reserves and Transparency
Proof of reserves refers to information about the storage of client assets on exchanges. Binance founder Changpeng Zhao initiated the concept after the bankruptcy of FTX to demonstrate the platform’s ability to cover any withdrawal requests. In February 2023, Binance updated its proof of reserves system for more efficient and transparent audits. Other exchanges such as OKX and Bitget also regularly publish proof of reserves reports.
Hot Take: Binance Ensures Security with Regular Audits
Binance’s latest audit of reserves reaffirms its commitment to security and transparency in the crypto industry. With over half a million Bitcoins and several million Ethereum under its control, Binance provides assurance to its users that their funds are well-protected. The publication of these audit reports allows users to verify the exchange’s holdings and strengthens trust in the platform. As Binance continues to prioritize security measures, it sets a positive example for other exchanges to follow.
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