Question marks about Binance still remain. However, as we have reported as Kriptokoin.com, there is an atmosphere of panic in the markets. Experts point out Binance reserves, saying it’s okay. So, are the announced reserves questionable? Here are the details…
Binance reserves look strong but…
Analyst Ki Joung Yu talked about the drop in Bitcoin (BTC) reserves in the last two days. The analyst said Binance’s holdings have risen nearly 24 percent since FTX’s crash. He also noted that the surge in Ethereum (ETH) since November has not had a significant impact on the stock’s reserves. On the contrary, the number of ETH in the wallets of the exchange is increasing. The same is true for Bitcoin assets. BTC volumes on exchanges are good, indicating that Binance is not forced to sell its holdings in exchange for liquidity. In his Twitter post, the analyst said:
People ask me if Binance is good. BTC reserves have dropped by -8% in the last two days, but increased by +24% during the FTX event last month. There may be things that need clarification for regulation, but for now I don’t see any suspicious on-chain activity.
According to the report by Nansen, Binance’s portfolio is worth approximately $60 billion. However, that doesn’t mean the exchange can handle a $60 billion withdrawal request. The value of liquid assets held on an exchange that can be used in an emergency remains at approximately $20 billion. With around $2 billion in withdrawals, Binance could be in trouble. So these amounts can affect the withdrawals of the investors.
CZ tries to allay users’ concerns
Numerous cryptocurrency experts have warned users to store their crypto in their own wallets. However, Binance CEO tried to quell concerns about the cryptocurrency giant’s financial situation. He also claimed that the company will “survive” the ongoing cryptocurrency winter. CZ’s comments followed Nansen’s report. Nasnsen revealed that Binance recorded $3 billion worth of withdrawals in just 24 hours.
Meanwhile, Reuters recently revealed that nearly half a dozen US federal prosecutors are considering filing charges against Zhao. However, he stated that the investigation has not yet reached a definite conclusion. Zhao said that rhetoric that would create “FUD” (fear, uncertainty and doubt) should be avoided in order to calm users’ concerns. It’s worth remembering, however, that Bankman-Fried said FTX was “good” just days before the exchange filed for bankruptcy.
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