Binance Labs, the investing arm of crypto exchange Binance, purportedly achieved a historical return on investment of up to 2,100%.
According to the most recent blog post, the total assets under administration have now reached $7.5 billion. The site also informed consumers that its “financial status is very healthy” and that it has enough capital reserves to cover day-to-day operations and weather any difficult cycles.
Binance claims that all assets held by users on its platform are supported 1:1. Furthermore, clients can withdraw money at any time, dispelling rumors about insufficient reserves for users to do so.
Also, it declared that it will not pilfer such assets for any transactions or investments, a dig at FTX, whose founders are accused of misappropriating user cash. The exchange further stated that it has no obligations and is not on the creditors’ list of any recently bankrupt company.
“A few negative cases do not represent the entire industry. Many people started to doubt and attack the encryption industry as a whole through a few negative cases, which shows that the development of the entire industry still has a long way to go.”
Following the demise of FTX, the crypto industry’s latest obsession has been completing proof-of-reserve attestations. As a result, BINANCE launched a Merkle tree-based Bitcoin and Ethereum system. Other platforms, including OKX, Crypto.com, and ByBit, have followed a similar approach in response to increased investor demand for transparency from centralized exchanges around the world.
As of November 22nd, global audit company Mazars certified that Binance had enough bitcoins and wrapped bitcoins (WBTC) to cover all user balances on the site. Several industry experts, however, pointed out that the report focused more on telling the public about the backed assets than the indicated reserves.
