The past couple of weeks were crazy for the crypto space, we saw the second largest crypto exchange FTX break, SBF got arrested and then the Binances’ withdrawal saga, this is all happening because of the untrust in the people regarding the centralized crypto exchanges. CZ, the CEO of BINANCE is trying to regain that trust by pushing the narrative of Proof-of-Reserve, which had been proven effective till the actual reports were released. Here are the latest updates regarding the PoR, which will help you to keep updated regarding PoR stuff.
1. CryptoQuant Analyzed Binance PoR Report
CryptoQuant is one of the on-chain and off-chain analytics providers as well as a kind of social media for traders and data analyzers. Recently, they published the analysis of the PoR report and mentioned some of the key points as well as an FAQ regarding the report.
The main point from the CryptoQuant was that Binance has around 97% of the depositor's assets collateralized and it gets to 101% when the lent amount is considered. This means that Binance has lent around 3% of the depositor's assets and that is a healthy ratio but definitely not 1:1! These are the numbers specifically about the Bitcoin reserves of Binance. Following is the chart regarding Bitcoin Exchange Reserves presented by CryptoQuant.
One more note from the CryptoQuant analysis says regarding the Ethereum and stablecoin reserves that it does not show ‘FTX-Like Behavior, that’s CryptoQuant being sarcastic! You can check the CryptoQuant analysis
2. Mazars Paused Auditing for Crypto Exchanges – Binance, Kucoin
Mazars is a third-party auditing firm that was involved in auditing the proof of reserves of the exchanges, the list includes exchanges like Binance, Kucoin, and many other leading exchanges in the crypto space. But after the clash from the previously published ‘audit-like’ report for Binance, Mazars has now paused the crypto exchanges' services. Not sure about the reason behind this but Binance has made that announcement as well through their
After this sudden pause by the Mazars, many speculators fired up Twitter and try to ‘guess’ the reason behind it. Many were already started to spread the withdrawal narrative but now it is trending in the crypto topics on Twitter.
This withdrawal narrative leads to the withdrawal of a tremendous amount of assets from Binance, almost reaching $10 Billion in a week, that’s a huge number, and kudos to the Binance team regarding that! But it is also important to notice that a huge amount of crypto is going back to the decentralized infrastructure which is a great thing, but now the role of decentralized infrastructure is important, whether it is possible to handle this and prevent customers from any hacks.
So have you withdrawn your assets from Binance or any other centralized platforms? Let me know in the comments and yes hope you found this article informative, if yes then consider following me @CryptoManthan for more.
Thanks for Your time!
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