A recent Proof of Reserves (PoR) report released by cryptocurrency exchange Binance indicates a substantial reduction in the exchange’s own cryptocurrency holdings. While Binance maintains it continues to hold all user assets in full, the report reveals a significant sell-off of the exchange’s excess reserves.
The latest PoR shows a stark contrast to the previous report, with billions of dollars worth of various cryptocurrencies apparently liquidated. Key changes highlighted in the report include:
- Bitcoin (BTC): Binance appears to have sold nearly all of its previously reported $4 billion in BTC holdings.
- Tether (USDT): A similar sell-off is evident with USDT, with almost all of the exchange’s $3 billion holdings seemingly liquidated.
- Ether (ETH): The report indicates a complete divestment of Binance’s $700 million in ETH.
In total, the report suggests that Binance has sold approximately $8 billion out of its previously reported $14 billion in excess cryptocurrency reserves.
While Binance assures users that all customer funds remain secure and fully backed, the sell-off has impacted the reserve ratios. The ratio of Binance’s BTC holdings to user BTC holdings, which previously stood at 108%, has now dropped to 100.45%. A similar decrease is observed for ETH, with the ratio falling from around 104% to 100%. Solana (SOL) and XRP also experienced declines in their respective reserve ratios. The reserve ratios for Binance’s stablecoin offerings saw a less pronounced decrease.
Here’s most recent PoR report:
And here’s the last month’s:
You can view the latest Binance PoR report here.
