According to the Binance CEO, the exchange carries ‘proof of reserve (PoR) large amounts of crypto assets as part of its audits. Here it is moved bitcoin details of its existence.
As Koinfinans.com reported, 127,351 Bitcoins were transferred to an unknown wallet recently. This amounts to over $2 billion in total. According to on-chain data, the job took place at 10.00 UTC and only cost $0.42.
The massive transaction that took place quickly triggered fear and panic in the community. Many people believe that it is not good for Binance to carry such a large amount.
Changpeng Zhao He later announced on Twitter that the transaction was part of Binance’s PoR audit process. He also urged the community to remain calm and ignore FUD.
Binance’s Bitcoin Assets Are Safe
“The auditor wants us to send ourselves a certain amount to show that we have checked the wallet. The rest goes to a new address, the exchange address. Therefore, the transfer was quite large.”
The CEO also urged the crypto community to “learn about blockchain transactions” and “change addresses”, citing an old post he posted on Twitter four years ago.
“We will move some funds between our cold wallets. A sign of a new cold wallet on Binance is two small transfers from an existing wallet followed by a large transaction. There is no need to worry.” -October 2018.
Binance Its CEO also responded to growing fear in his comments. He commented, claiming that investors who always believe in FUD will likely be losers. shared.
I know it’s hard.
If you thought a fraudster is legit, you probably are already poor.
But…
If you believe FUD all the time, you will also likely to be poor.
Life is not easy.
— CZ 🔶 Binance (@cz_binance) November 28, 2022
The transaction, carried out by Binance, raised eyebrows from investors as Zhao declared that exchanges carrying large amounts of crypto to prove wallet addresses were not good news. On November 13, Zhao made the following statement on Twitter.
“If an exchange has to move large amounts of crypto before or after revealing wallet addresses, that’s a clear sign of problems. Stay away.”
Haber, former Kraken CEO and co-founder Jesse PowellIt came shortly after Binance argued that its PoR approach was “meaningless” without obligations.
Many experts, including DAO Maker Hassan Sheikh and JAN3 CEO Samson Mow, are confident that exchanges’ PoR implementation will not work without obligations because it is very difficult for exchanges to fake obligations.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.