Binance has changed the Proof of Reserve (POR) selections it launched to regain investor confidence. It delisted an altcoin project linked to FTX.
Binance changes its Reserve preferences
Binance and its CEO CZ announced the release of its Proof of Reserve System (PoR) on Friday. PoR is Binance’s way of providing proof that the exchange covers all funds of its users in a 1:1 ratio. Initially, the PoR was only released for Bitcoin. However, the exchange stated that updates on Ethereum (ETH), Tether (USDT), USD Coin (USDC), Binance USD (BUSD) and Binance Coin (BNB) will also be provided.
According to the data, Binance currently holds around $9.48 billion worth of BTC. On the other hand, the total value of its reserves exceeds $ 9.59 billion. This fund provides adequate backup in case of a liquidity crisis like that faced by FTX. cryptocoin.comAs you follow, the stock market went into crisis with the disclosure of its sister company Alameda. It was the first step when Binance CZ announced that it would sell their holdings, citing Alameda’s hefty FTT reserve. As a result, FTX could not afford the money of its users who went to the stock market in panic.
Binance delists Serum
The fall of FTX not only knocked back FTT but also Solana (SOL). The serum uses the Solana network, an initiative of FTX’s sister company Alameda Research. Earlier last week, the Solana team announced that they currently hold approximately 134.54 million SRMs. This equates to $35.65 million in fiat terms. The community’s reaction to this decision was to hard fork the project. This resulted in a 147% increase in price.
However, on Friday, Binance announced the delisting of BTC, USD and USDT and SRM pairs, as well as 16 other token pairs. This led to a sudden drop in the price of the Serum, reducing the value of the SRM by almost 10% within 24 hours. Traded at $0.265, SRM is approaching its immediate support at $0.261. A bounce from this level would give it the bullish SRM needs to turn the $0.307 resistance and rally towards $0.34.
However, Serum price is still sensitive to the drop due to recent developments. If SRM loses the $0.261 support, analysts predict it will drop as low as $0.193. Closing below this level will invalidate the bullish argument. It will drop SRM to $0.133, causing a nearly 50% crash.
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