Binance’s Proof of Reserves Update
Binance, the largest cryptocurrency exchange by volume, recently released its monthly Proof of Reserves, providing a self-reported audit as of November 1. The audit revealed that Binance is currently holding $601.57 million in Shiba Inu (SHIB) on behalf of its customers.
The total amount of Shiba Inu held by Binance’s reserves is 77.48 trillion SHIB, with 75.19 trillion coming from customers’ net balances. This results in a 103% coverage ratio for SHIB’s custody, exceeding the necessary 1:1 ratio by 300 basis points.
Furthermore, Binance also records its proof of reserves on the Bitcoin (BTC) blockchain to achieve global time precision through the leading cryptocurrency’s timechain. The self-audit was conducted at Bitcoin block height 814748 in November.
SHIB Price Analysis
At present, SHIB is trading at $0.000008 per token and has experienced a weekly bullish uptrend with nearly 5% gains over the last seven days. However, SHIB is currently testing price support, and a breakout from this zone could lead to further losses following the 3.48% decrease in the last 24 hours.
Binance Holds the Largest SHIB Supply
Binance stands as the largest holder of SHIB tokens, accounting for 13.15% of Shiba Inu’s circulating supply across various addresses. Additionally, the exchange is responsible for 23% of SHIB’s daily trading volume according to CoinMarketCap data at the time of publication. In the past 24 hours alone, Binance has facilitated over $50 million in Shiba Inu trading operations.
Given Binance’s significant role in the SHIB ecosystem, its ability to honor customer withdrawals is crucial. Alternatively, Shiba Inu can be held in self-custody on cryptocurrency wallets compatible with the Ethereum (ETH) network.
Hot Take: The Significance of Binance’s Position in the SHIB Ecosystem
It is evident that Binance’s substantial holdings and trading volume have a significant impact on Shiba Inu’s market dynamics and liquidity. As such, Binance’s ability to maintain reserves and facilitate customer withdrawals plays a vital role in supporting the overall health and stability of the SHIB ecosystem.
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